David Chacko
About David Chacko
David M. Chacko, M.D., serves as Chief Financial Officer and Chief Business Officer of Erasca; he joined Erasca in August 2019 as Chief Business Officer, became CFO in December 2020, and reassumed the dual CFO+CBO roles in April 2023. He is 42 years old (as of April 28, 2025), with an M.D. from the University of Pennsylvania, M.B.A. from Wharton, M.Phil. from Oxford (Marshall Scholar), and dual B.A./B.S. from USC; prior roles include Principal at Versant Ventures, Chief of Staff to the CEO at Alcon, and Engagement Manager at McKinsey. His compensation is structured with base salary and annual bonus linked to corporate clinical, regulatory, operational and financial objectives, alongside multi-year stock option awards that vest over four years with monthly vesting cadence, creating alignment through equity accretion and retention through time-based vesting. The company’s insider policy prohibits hedging and pledging of Erasca stock, and Erasca maintains a clawback policy covering Section 16 officers.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Versant Ventures | Principal | 2017–2019 | Led investing/operating work; advanced portfolio companies across formation, fundraising, BD, clinical and regulatory activities. |
| Alcon | Chief of Staff to the CEO | 2014–2017 | Drove growth/innovation initiatives with executive team. |
| McKinsey & Company | Engagement Manager | 2011–2014 | Led teams serving pharma/medtech across sales, marketing, R&D, finance. |
| SR One (GSK VC) | Investment professional | Not disclosed | Prior role noted; dates not specified. |
| Amgen | Commercial operations | Not disclosed | Prior role noted; dates not specified. |
| Morgan Stanley | Investment banking | Not disclosed | Prior role noted; dates not specified. |
External Roles
| Organization | Role | Years | Strategic Impact / Notes |
|---|---|---|---|
| Erasca Foundation | Officer | Current | CFO is an officer of the Foundation; the Foundation supports research/patient initiatives; company donation of $125,000 in April 2024. |
| (Public company boards) | — | — | None disclosed. |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $475,500 | $492,100 |
| Target Bonus (%) | 40% of base | 40% of base |
| Actual Cash Bonus Paid ($) | $180,690 | $226,366 |
| Option Awards – Grant Date Fair Value ($) | $1,767,900 | $1,155,690 |
| All Other Compensation ($) | $9,900 (401(k) match) | $10,350 (401(k) match) |
- 2025 base salary increased to $516,700 effective January 1, 2025.
Performance Compensation
Annual Incentive (Cash)
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Corporate objectives (clinical/regulatory, operational, financial) | Not disclosed | 40% of base | Company performance assessed vs objectives | 115% of target approved for 2024 | Cash (annual bonus for 2024) |
Equity Incentives (Stock Options)
| Grant Date | Type | Shares | Exercise Price ($) | Vesting | Expiration |
|---|---|---|---|---|---|
| Feb 5, 2024 | Option | 600,000 | $1.70 | 1/48 monthly from Feb 1, 2024; eligible for acceleration per Severance Plan | Feb 4, 2034 |
| Jun 20, 2024 | Option | 278,812 | $2.03 | 1/48 monthly from Jun 20, 2024; eligible for acceleration per Severance Plan | Jun 19, 2034 |
| Feb 1, 2025 | Option | 800,000 | Not disclosed | 1/48 monthly from Feb 1, 2025; eligible for acceleration per Severance Plan | Not disclosed |
Notes:
- Erasca discloses monthly vesting cadence for standard grants; all subject to accelerated vesting under Severance Plan terms described below.
Equity Ownership & Alignment
| Metric | Apr 15, 2024 | Apr 15, 2025 |
|---|---|---|
| Total Beneficial Ownership (shares) | 1,569,305 | 2,144,478 |
| Ownership (% of outstanding) | <1% | <1% |
| Direct/Common Shares | 246,726 (incl. 5,556 subject to repurchase within 60 days) | 262,187 |
| Options exercisable within 60 days | 1,322,579 | 1,882,291 |
| Pledged as collateral | Prohibited by policy | Prohibited by policy |
| Hedging (derivatives, collars, swaps) | Prohibited by policy | Prohibited by policy |
Additional context:
- Outstanding option positions span grants from 2019–2024 with multiple strikes and expirations; example 2024 positions: 125,000/475,000 at $1.70 expiring 2/4/2034; 34,851/243,961 at $2.03 expiring 6/19/2034.
- Company repriced certain employee options in May 2024 to $2.35, explicitly excluding Section 16 officers (including CFO).
Employment Terms
- Employment agreement: At-will; eligible for annual base salary and performance bonus per letter agreement.
- Severance (no change-in-control trigger; termination without cause or for good reason):
- Tier 1 Covered Employee benefits: Lump-sum cash equal to 9 months of annualized base pay; company-paid COBRA for 9 months; accelerated vesting of equity awards that would vest within 9 months.
- Change-in-control (within 12 months; termination without cause or for good reason):
- Tier 1 benefits: Lump-sum cash equal to 12 months base pay plus 1.0x target bonus; company-paid COBRA for 12 months; 100% acceleration of all outstanding equity awards.
- Conditions/Covenants: Release of claims; restrictive covenants, including non-solicitation and non-disparagement; Section 280G “better-off” cutback applies.
- Clawback: Compensation recovery policy (SEC/Nasdaq compliant) covering Section 16 officers for erroneously paid incentive compensation on/after October 2, 2023.
- Insider trading policy: Prohibits pledging, hedging, margin accounts, short sales, and transactions in puts/calls/derivatives on Erasca stock.
Investment Implications
- Alignment and retention: Chacko’s compensation is equity-heavy with substantial multi-year option grants and monthly vesting, creating ongoing retention hooks and direct alignment to long-term equity value; 2024 bonus paid at 115% of target signals board recognition of execution against clinical, regulatory, operational and financial objectives.
- Supply/overhang considerations: Large tranche of currently exercisable options (1.88M exercisable within 60 days as of April 15, 2025) represents potential future supply if exercised and sold; however, pledging/hedging are prohibited, and there is no evidence of option repricing benefiting Section 16 officers (CFO excluded).
- Change-in-control economics: Double-trigger with 100% equity acceleration and 12 months base plus 1.0x target bonus may reduce retention risk post-transaction while creating balanced incentives during strategic alternatives.
- Pay mix shift: Year-over-year, base salary rose ($16.6K), cash bonus increased ($45.7K), and option grant fair value decreased (~$612K) in 2024 vs 2023; 2025 base salary further increased to $516,700 with continued option grants, maintaining equity-centric alignment.
- Governance safeguards: Clawback adoption and strict insider policy lower governance risk; no pledging or hedging and defined severance tiers with 280G “better-off” cutback mitigate shareholder-unfriendly outcomes.