Patrick J. Haley
EXELIXISAbout Patrick J. Haley
Executive Vice President, Commercial at Exelixis since February 2020; with the company since 2010 in progressively senior commercial roles. Age 49. Education: MBA, University of Michigan (Ross); BA, Duke University . During his tenure, Exelixis’ net product revenues grew from $1,077.3M (2021) to $1,809.4M (2024), while cumulative TSR (indexed to 2020) reached 200 by 2024, indicating strong value creation through commercialization of the cabozantinib franchise and pipeline advancement .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Exelixis | EVP, Commercial | 2020–present | Leads U.S. commercial franchise; 2024 NPR $1.8094B; continued cabozantinib growth |
| Exelixis | SVP, Commercial; VP, Commercial; Executive Director, Sales & Marketing; Senior Director/Director, Marketing | 2010–2020 | Recognized for “continued strong CABOMETYX demand” and launches (RCC 1L combo; DTC) contributing to >$1B U.S. NPR in 2021 |
| Genentech | Avastin Marketing (increasing responsibility; Group Product Manager) | 2007–2010 | Oncology brand management experience |
| Amgen | Sales and Marketing roles | 2003–2007 | Biopharma commercial experience |
| PwC Securities; Lehman Brothers; Accenture | Analyst | 1998–2001 | Analytical/consulting background |
External Roles
| Organization | Role | Years | Strategic Focus |
|---|---|---|---|
| NetraMark Holdings, Inc. | Director | Oct 2024–present | Generative AI software for clinical trial analytics |
Fixed Compensation
| Year | Base Salary ($) |
|---|---|
| 2021 | 526,477 |
| 2020 | 500,953 |
Performance Compensation
- Annual Cash Bonus (structure and 2021 outcome)
- Exelixis Annual Cash Bonus Plan ties payouts to pre-set corporate goals (commercial, R&D, BD, financial, regulatory) and individual contributions (for non-CEO NEOs). For 2024, corporate goals weighted across Cabozantinib (40%), Zanzalintinib (20%), and pipeline/collaborations/BD (40% combined) with rigorous target/maximum scales and CEO-only corporate weighting; other executives typically 70% corporate/30% individual .
| Year | Target Bonus % | Corporate vs Individual Weighting | Corporate Achievement % | Individual Performance % | Payout % of Target | Bonus ($) |
|---|---|---|---|---|---|---|
| 2021 | 50% | 70% / 30% | 115% | 120% | 117% | 308,958 |
- Equity Awards and Vesting
| Grant Year | Instrument | Shares/Target | Vesting / Performance | Grant-Date Value / Notes |
|---|---|---|---|---|
| 2021 | RSUs | 59,570 | 25% on 5/15/2022 and annually thereafter (time-based) | Included in 2021 stock awards total $1,269,437 |
| 2021 | PSUs | 59,570 target | 3-year program tied to cabozantinib global NPR with TSR modifier; final payout certified at 125% for 2021 cycle; 50% vested at certification (Jan 2024), 50% on 2/15/2025 | 2021 PSU target value $1,269,437 (illustrative) |
| 2024 (company program) | RSUs (NEO structure) | Varies by role | Four equal annual installments beginning 5/15/2025 (for 2024 grants) | Company program detail (Haley not listed as 2024 NEO) |
| 2024 (company program) | PSUs (NEO structure) | Varies by role | Relative TSR vs Nasdaq Biotech Index over 3 years ending 1/1/2027; 50% vests at certification; 50% first quarterly vest date one year later | |
| 2025 (special, all employees) | PSUs | Company-wide (NEOs detailed) | Vest if 90-day VWAP ≥ $60 at any time in 5 years AND employee remains employed through 5th anniversary; otherwise forfeited | One-time retention/performance program |
- Realized Equity Activity (historical indicator)
| Year | Options Exercised (Shares) | Value Realized on Exercise ($) | Stock Vested (Shares) | Value Realized on Vesting ($) |
|---|---|---|---|---|
| 2021 | 25,000 | 466,383 | 167,589 | 3,306,608 |
Equity Ownership & Alignment
- Stock ownership guidelines: Exelixis maintains stock ownership guidelines for executive officers to align interests with shareholders (CEO multiple increased to 6x salary in 2024); methodology credits RSUs/PSUs achieved but excludes unexercised options .
- Hedging/pledging: Hedging, short sales, and derivative transactions prohibited; policy updated in Dec 2024 to prohibit all pledging; as of the 2025 proxy, no executive officers or directors had pledged shares .
- Vesting cadence and potential selling pressure: RSUs from 2024 grants vest annually each May 15; PSU programs vest 50% at certification and 50% one year later on the next quarterly vest date (e.g., 2021 PSU cycle vested in Jan 2024 and Feb 15, 2025), which can cluster supply events around certification and February 15 vest dates .
- Special $60 PSU overhang: The March 2025 special PSU program for all employees creates additional potential supply if the 90-day VWAP hurdle is achieved and service conditions are met .
Employment Terms
- Change-in-control and severance: Exelixis’ CIC Plan covers employees at VP level and above. For a qualifying termination within 3 months before to 15 months after a change in control (double-trigger), benefits typically include: 18 months of base salary plus target bonus (non-CEO), up to 18 months COBRA or cash equivalent, outplacement (up to $30,000), and full vesting of unvested equity at target (or higher if earned); CEO receives 24 months and higher outplacement caps . Equity may also accelerate if not assumed in certain change in control transactions, or upon acquisition of >50% voting power without Board approval, even without termination, under the 2017 Plan provisions . The program is explicitly structured as double-trigger and excludes 280G tax gross-ups .
- Clawback: Policy allows recovery of variable compensation (excluding base salary) for misconduct causing material harm and recoupment following a financial restatement, applicable to senior executives .
- Insider trading policy: Prohibits derivatives, short sales, hedging/monetization, margin purchases; pledging fully prohibited from Dec 2024 .
Performance & Track Record
| Metric | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Net Product Revenues ($M) | 1,077.3 | 1,401.2 | 1,628.9 | 1,809.4 |
| Net Income ($M) | 231.1 | 182.3 | 207.8 | 521.3 |
| Cumulative TSR (Indexed to $100 in 2020) | 107 | 94 | 141 | 200 |
- Operational goal attainment informing incentive payouts: 2024 corporate goals showed above-target performance in cabozantinib revenues and zanzalintinib pivotal trial execution, with mixed outcomes across certain collaborations; Compensation Committee approved 2024 corporate performance at 115% for bonus calculations .
Risk Indicators & Red Flags
- Hedging/pledging prohibited; no pledged shares by executives/directors as of latest proxy (reduces misalignment risk) .
- Compensation risk mitigation includes capped bonus maxima and annual risk assessment by the Compensation Committee .
- Equity plan features prohibit option repricing without shareholder approval; minimum vesting standards; 7-year option terms .
Compensation Structure Analysis
- Mix shift toward PSUs/RSUs: Company LTIP uses roughly 50% PSUs and 50% RSUs for senior executives (2024 design), balancing retention (RSUs) with performance leverage (Relative TSR PSUs) .
- Performance rigor: PSU designs tied to Relative TSR and operational milestones (e.g., cabozantinib NPR; label-enabling trials) have led to certified outcomes (e.g., 2021 NPR PSUs at 125%; 2022 Relative TSR PSUs at maximum), creating meaningful at-risk alignment .
- One-time 2025 special PSU: Broad-based, difficult $60 VWAP target with 5-year horizon and service requirement is a strong retention and value-creation lever; also creates potential supply if achieved .
Employment Terms and Contracts
- Eligibility for CIC protections as EVP confirmed by plan’s coverage of VP-and-above roles .
- No disclosures of non-compete, non-solicit, or garden leave specifics for Haley in the proxy; standard company policies (Code of Conduct, compliance programs) apply .
Investment Implications
- Alignment: Haley’s incentives are aligned to commercial execution (cabozantinib), pivotal development milestones (zanzalintinib), and shareholder value via Relative TSR PSUs; historical outcomes (e.g., 2021–2024 TSR and NPR growth) indicate goal designs that can pay for performance .
- Supply dynamics: Watch for equity supply around PSU certification windows and the February 15 vest cadence, plus potential broad-based issuance if the $60 special PSU triggers; these could create episodic insider selling pressure even if fundamentals remain solid .
- Retention: Double-trigger CIC benefits, clear ownership/hedging prohibitions, and the 2025 special PSU suggest low near-term retention risk; the plan provides meaningful protections and upside tied to long-term performance .
- External insights: NetraMark board seat could augment Exelixis’ data/AI commercialization strategies in clinical analytics, potentially benefiting go-to-market and trial optimization .