David Krempa
About David Krempa
David C. Krempa, age 36, is Eton Pharmaceuticals’ Chief Business Officer (CBO), appointed effective March 1, 2023; he joined Eton in August 2017 and previously led business development and investor relations functions (CFA; B.S. Finance, DePaul) . During his tenure as a senior leader, Eton’s revenue grew from $21.3M in FY22 to $39.0M in FY24, while EBITDA improved materially in 2023 before modestly declining in 2024; FY24 net loss was $3.8M, and 2024 executive cash bonuses paid out at 131.1% of target based on stock performance vs. peers, revenue/profitability, FDA approvals, and BD/licensing activity . Revenue and EBITDA detail are shown below.
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenue ($USD) | 21,251,000 * | 31,642,000 * | 39,011,000 * |
| EBITDA ($USD) | -6,548,000* | -358,000* | -1,106,000* |
Values retrieved from S&P Global.
Notes: FY22→FY23 revenue +48.9%, FY23→FY24 +23.3% (based on S&P Global values above).
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Eton Pharmaceuticals | Chief Business Officer | Mar 2023 – Present | Commercial and BD leadership |
| Eton Pharmaceuticals | SVP, BD & Investor Relations | Apr 2021 – Mar 2023 | Investor relations, BD leadership |
| Eton Pharmaceuticals | VP, Business Development | Mar 2019 – Apr 2021 | Business development leadership |
| Eton Pharmaceuticals | Executive Director, Business Development | Sep 2017 – Mar 2019 | Business development execution |
| Sagent Pharmaceuticals | Business Development roles | Pre-2017 (exact years not disclosed) | Specialty pharma BD experience |
| Akorn, Inc. | Business Development roles | Pre-2017 (exact years not disclosed) | Specialty pharma BD experience |
| Morningstar, Inc. | Equity Analyst | Pre-2017 (exact years not disclosed) | Public equities research; CFA |
External Roles
No external public company directorships or external governance roles for Mr. Krempa are disclosed in the executive biographies reviewed .
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | 372,583 | 397,833 |
| Target Bonus (% of Salary) | 45% (employment agreement) | 45% (employment agreement) |
| Actual Bonus Paid ($) | 162,075 | 236,216 |
| All Other Compensation ($) | 12,200 (401k contribution) | 13,800 (401k contribution) |
| Total Compensation ($) | 719,080 | 1,325,083 |
Additional current terms: Under his employment agreement, Mr. Krempa is entitled to an annual base salary of $400,400 and an annual discretionary incentive bonus with a target of 45% of base salary (current entitlement) .
Performance Compensation
- 2024 annual cash bonus paid at 131.1% of target for all executives, based on: company stock performance vs. peer group, financial revenue and profitability, FDA product approvals, and product licensing/acquisition activity .
- For Mr. Krempa, target bonus equals 45% of base salary; with a current base entitlement of $400,400, the implied 2024 target bonus was ~$180,180 and the payout (131.1%) aligns with the $236,216 disclosed .
| Component | Metric | Weighting | Target | Actual | Payout | Vesting/Timing |
|---|---|---|---|---|---|---|
| Annual Cash Bonus (2024) | Stock performance vs. peers; revenue/profitability; FDA approvals; BD/licensing | Not disclosed | 45% of base salary | Company achieved above target against the metrics | 131.1% of target | Paid in 2025 for 2024 performance |
Equity grants (select 2024/2022 RSUs; see “Outstanding Equity Awards” for full detail):
- 10/2/2024: 42,088 RSUs unvested as of 12/31/2024 (market value $560,612) .
- 7/12/2022: 20,000 RSUs unvested as of 12/31/2024 (market value $266,400) .
Equity Ownership & Alignment
| Ownership detail (as of April 11, 2025) | Amount |
|---|---|
| Total Beneficial Ownership (shares) | 646,646 |
| Ownership (% of outstanding 26,817,535) | 2.36% |
| Vested Stock Options included in beneficial ownership | 597,095 |
| Stock options vesting within 60 days of April 11, 2025 | 22,345 |
| Unvested Stock Options vesting after June 10, 2025 (excluded from beneficial ownership) | 192,611 |
| Unvested RSUs vesting after June 10, 2025 (excluded) | 87,964 |
| Pledging/Hedging | Insider policy prohibits short sales, derivatives, and pledging without prior approval |
Outstanding equity awards (options and RSUs) held by Mr. Krempa at 12/31/2024:
| Grant Date | Options Exercisable (#) | Options Unexercisable (#) | Exercise Price ($) | Expiration | RSUs/Stock Awards Unvested (#) | Market Value ($) |
|---|---|---|---|---|---|---|
| 2/13/2024 | 30,141 | 114,536 | 4.42 | 2/12/2034 | — | — |
| 2/20/2023 | 34,046 | 40,237 | 3.47 | 2/19/2033 | — | — |
| 2/7/2022 | 112,107 | 46,163 | 3.78 | 2/6/2032 | — | — |
| 10/29/2021 | 20,000 | — | 5.76 | 10/28/2031 | — | — |
| 5/3/2021 | 76,145 | 8,855 | 8.61 | 5/2/2031 | — | — |
| 3/12/2020 | 156,200 | — | 3.58 | 3/11/2030 | — | — |
| 2/20/2019 | 95,000 | — | 7.31 | 2/19/2029 | — | — |
| 11/10/2017 | 25,000 | — | 1.37 | 11/9/2027 | — | — |
| 8/7/2017 | 25,000 | — | 1.38 | 8/6/2027 | — | — |
| 10/2/2024 | — | — | — | — | 42,088 | 560,612 |
| 7/12/2022 | — | — | — | — | 20,000 | 266,400 |
Notes:
- As an inducement upon joining in 2017, Mr. Krempa received 100,000 NQSO shares, all vested as of the latest proxy .
- Beneficial ownership excludes securities vesting after June 10, 2025, as detailed in footnotes .
Employment Terms
| Term | Details |
|---|---|
| Employment status | At-will |
| Current base salary entitlement | $400,400 |
| Target annual bonus | 45% of base salary (discretionary, performance-based) |
| Severance (non‑CoC) | If terminated without cause or resigns for good reason: six months’ base salary plus continued health premiums (subject to release and covenants) |
| Change-in-control (CoC) | If terminated without cause or resigns for good reason within one month prior to or 12 months post‑CoC, all remaining unvested stock options vest (double-trigger acceleration) |
| Restrictive covenants | Proprietary information, inventions, non‑solicitation, and non‑competition agreement |
| Clawback/hedging/pledging | Insider policy prohibits short sales, derivative transactions, and pledging without prior approval; margining prohibited |
| Retirement/pension | No defined benefit plans; 401(k) with company matching (other comp reflects contributions) |
Performance & Track Record
- 2024 compensation outcomes reflected above‑target performance on key objectives; non‑equity incentives paid at 131.1% of target .
- Company financials: FY22 revenue $21.3M, FY23 $31.6M, FY24 $39.0M; EBITDA FY22 -$6.5M, FY23 -$0.36M, FY24 -$1.11M (see table in “About” above; S&P Global values). FY24 net loss: $(3.8)M .
Values retrieved from S&P Global.
Compensation Structure Analysis
- Cash vs equity mix: 2024 included base salary of $397,833, cash bonus $236,216, plus equity (stock awards $250,003; option awards $427,231), indicating a meaningful at‑risk equity component aligned with long‑term value .
- Metric rigor: Bonuses tied to multi‑factor performance (stock performance vs peers; revenue/profitability; FDA approvals; BD/licensing). Weightings not disclosed; payout at 131.1% suggests above‑target operational and strategic execution in 2024 .
- Equity evolution: RSU grants in 2024 (42,088 units) complement option-heavy prior grants, modestly lowering risk vs options and strengthening retention through time-based vesting .
Risk Indicators & Red Flags
- Hedging/pledging: Policy prohibits hedging and pledging without prior approval; no pledging disclosed in the proxy .
- CoC economics: Double-trigger acceleration on options could reduce retention risk in a sale scenario but limits “golden parachute” optics (no tax gross-ups disclosed) .
- Section 16 compliance: Management reported timely beneficial ownership filings for 2024 .
Compensation & Ownership Detail (Multi-Year Summary)
| Metric | 2023 | 2024 |
|---|---|---|
| Salary ($) | 372,583 | 397,833 |
| Non-Equity Incentive ($) | 162,075 | 236,216 |
| Stock Awards ($) | — | 250,003 |
| Option Awards ($) | 171,222 | 427,231 |
| All Other Compensation ($) | 12,200 | 13,800 |
| Total ($) | 719,080 | 1,325,083 |
| Beneficial Ownership (shares) | 401,771 (as of 4/14/2023) | 646,646 (as of 4/11/2025) |
| Ownership (%) | 1.55% (on 25,504,378 shares) | 2.36% (on 26,817,535 shares) |
Investment Implications
- Alignment: Significant personal exposure via options (597k vested) and RSUs (108k+ unvested across 2022/2024 grants and post‑June 2025 vesting), aligns the CBO with long‑term equity value creation .
- Near-term selling pressure: 2025+ vesting events (87,964 RSUs and 192,611 options post‑June 10, 2025) could introduce periodic liquidity/selling, though policy constraints and windowing apply .
- Retention risk: Cash severance is modest (six months); retention primarily equity-driven. Double-trigger CoC acceleration balances executive protection with change‑in‑control neutrality .
- Execution signals: Above-target bonus payout tied to revenue/profitability, approvals, and BD/licensing indicates management delivery on core growth levers; continued revenue scaling is critical to convert toward sustained profitability .