Paul Kim
Fulgent GeneticsAbout Paul Kim
Paul Kim, 57, is Chief Financial Officer of Fulgent Genetics (since January 2016) and a Certified Public Accountant with a B.A. in Economics from UC Berkeley (1989) . His compensation is tied to pay-for-performance with annual incentives based on Core Revenue and Core EBITDA, and long-term equity in both time-based and performance-based RSUs; 2024 annual payout was 112.8% of target reflecting company performance against revenue and EBITDA goals . Company performance context: Total Revenue decreased 2% in 2024 (to $283.5M) while Core Revenue grew 7% (to $281.2M) and Core EBITDA was -$19.0M; cumulative TSR from 12/31/2019 to 12/31/2024 equated to $35 on a $100 initial investment, with peer index $91 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Cogent, Inc. | Chief Financial Officer | 2004–2011 | Cogent was acquired by 3M in 2010; Paul Kim served as CFO during the period . |
| JNI Corporation | Chief Financial Officer | 2002–2003 | Public storage area network technology company; CFO role . |
| JNI Corporation | VP Finance & Corporate Controller | 1999–2002 | Finance leadership prior to CFO . |
| Datafusion Inc. | VP Finance & Administration | 1998–1999 | Finance leadership at private software company . |
| Interlink Computer Sciences, Inc. | Corporate Controller | 1996–1998 | Controller at public enterprise software firm . |
| Coopers & Lybrand L.L.P. | Audit Manager | 1990–1996 | Audit management experience . |
External Roles
| Organization | Role | Years |
|---|---|---|
| Exagen Inc. | Director | Current |
Fixed Compensation
| Year | Base Salary ($) | Target Bonus (%) | Actual Bonus Paid ($) | Stock Awards ($) | All Other Comp ($) | Total ($) |
|---|---|---|---|---|---|---|
| 2022 | 579,167 | 30% of salary | 128,440 | 3,115,000 | 49,980 | 3,872,587 |
| 2023 | 600,000 | 30% of salary | 235,650 | 900,000 | 43,963 | 1,779,613 |
| 2024 | 600,000 | 30% of salary | 203,040 | 1,500,000 | 50,604 | 2,353,644 |
Performance Compensation
Annual Cash Incentive Plan (2024)
| Metric | Weighting | Target | Actual | Payout | Notes |
|---|---|---|---|---|---|
| Core Revenue | 50% | Not disclosed | Not disclosed | 112.8% of target | Plan payout range 75%–162.5% of target . |
| Core EBITDA | 50% | Not disclosed | Not disclosed | 112.8% of target | Plan capped at 162.5% . |
| Annual Incentive (CFO) | — | 30% of salary | — | $203,040 | Based on Core Revenue/Core EBITDA . |
2024 Equity Grants (Grant date: 2/26/2024)
| Award Type | Shares | Grant Date Fair Value ($) | Vesting / Performance Conditions |
|---|---|---|---|
| Time-based RSUs | 24,732 | 600,000 | 3-year vest; 1/3 at 12 months from vesting commencement (2/26/2024), then 1/12 quarterly over remaining 24 months, subject to continued service . |
| Performance-based RSUs | 37,098 target; Threshold 27,824; Max 60,284 | 900,000 grant date probable value | Earned over 2024–2026 based on annual revenue and EBITDA targets; payout scaled 75%–162.5% per year . |
Performance-Based RSUs Earned (Annual outcomes)
| Year | CFO PBRSUs Earned (#) | Plan Payout vs Target |
|---|---|---|
| 2022 | 3,384 | Not disclosed |
| 2023 | 5,346 | Not disclosed |
| 2024 | 13,949 | 112.8% of target |
Equity Ownership & Alignment
| Item | Details |
|---|---|
| Total beneficial ownership | 245,761 shares; less than 1% of outstanding . |
| Direct shares | 140,912 shares held of record . |
| RSUs vesting within 60 days (as of 3/20/2025) | 4,849 shares . |
| Unvested RSUs outstanding (12/31/2024) | 90,983 units; market value $1,680,456 . |
| Options outstanding | 0; none shown for CFO . |
| Stock vested in 2024 | 36,924 shares; value realized $845,291 . |
- Ownership guidelines and retention: Executives are expected to retain a meaningful level of Company stock; policy requires retention of any net shares delivered through LTI for at least one year, strengthening alignment with stockholders .
- Hedging/pledging: Company permits hedging/pledging with compliance officer consent; disclosures list pledging for CEO and Dr. Gao, but no pledging disclosed for Paul Kim in footnotes .
Employment Terms
| Term | Provision |
|---|---|
| Employment status | At-will; may be terminated at any time . |
| Severance (change-in-control) | One year of continuation of then-current base salary if termination occurs for any reason within one year after a change in control; for Paul Kim this would be $600,000 if terminated on 12/31/2024 following a change in control; $0 if terminated absent a change in control . |
| Change-in-control definition | >50% beneficial ownership change, board composition change, merger/consolidation (with exceptions), liquidation/dissolution or sale of substantially all assets . |
| Equity treatment on change-in-control | Under 2016 Plan, options/SARs vest; other awards release restrictions and performance goals deemed achieved at target; similar acceleration applies under 2022 Pharma Plan, subject to administrator discretion on assumption/replacement/cash-out . |
| Clawback policy | Adopted March 2022; amended October 2023 to require recovery of excess incentive-based compensation upon accounting restatement; also recoupment for serious misconduct causing significant harm . |
| Tax matters | No tax gross-ups; compensation considered for Section 162(m); severance complies with Section 409A; if amounts constitute 280G “parachute payment,” timing rules apply (six-month delay) . |
| Insider trading | Trades must be pre-cleared; 10b5-1 plans require consent; hedging/pledging permitted with consent . |
Compensation Structure Analysis
- Mix and trends: CFO’s equity awards fluctuated meaningfully (2022: $3.115M; 2023: $0.9M; 2024: $1.5M), indicating variability aligned with company performance and grant policy rather than guaranteed equity levels . Base salary held flat at $600,000 in 2024; the Board made no increases to NEO base salaries in 2024 .
- Performance linkage: Annual incentives and PBRSUs tie payouts to annual revenue and EBITDA; 2024 company plan payout at 112.8% suggests revenue strength offsetting EBITDA weakness, consistent with Core Revenue growth and negative Core EBITDA in 2024 .
- Governance safeguards: One-year net share retention, caps on annual incentive payouts, and clawback policy mitigate excessive risk-taking and enhance alignment .
Say-on-Pay & Compensation Committee
- Advisory say-on-pay: Stockholders have approved executive compensation practices each year; the committee considers these results in evaluating programs .
- Compensation committee: Linda Marsh (Chair), Michael Nohaile, Ph.D., and Regina Groves .
Investment Implications
- Alignment and incentives: Kim’s pay structure is meaningfully at-risk via annual incentive tied equally to Core Revenue/Core EBITDA and multi-year RSUs; required one-year share retention supports alignment, while no personal pledging disclosed reduces collateralization risk .
- Vesting-driven supply: Time-based RSUs vest 1/3 at 12 months from 2/26/2024 then quarterly, plus annual PBRSU earn-outs; this cadence can create periodic insider share supply; 36,924 shares vested for Kim in 2024 with $845,291 value realized .
- Change-in-control economics: Severance equals 1x salary upon termination within one year post-CoC and RSU acceleration at target under equity plans; combined, this can increase executive liquidity and potential selling pressure in a transaction scenario .
- Execution risk context: Despite 2024 Core Revenue growth (+7%), Core EBITDA remained negative (-$19.0M); annual incentive paid above target (112.8%) underscores emphasis on top-line outcomes, which may maintain incentives amid profitability challenges .