Hong Yu
About Hong Yu
Hong Yu, 52, is President of Harvard Apparatus Regenerative Technology (HRGN) and a CFA charterholder with BS (Peking University) and MS (University of Illinois) degrees; he has served as President since May 2018 and is credited with raising over $20 million in capital for the company . He is an at-will executive with a base salary increased to $210,000 effective July 1, 2023 and participates in standard employee benefit plans . Company performance during his tenure shows persistent net losses and volatile shareholder returns per the proxy’s Pay vs Performance disclosure .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Bank of America | Senior Vice President | ~20 years (prior to HRGN) | Fundraising, strategic analytics, wealth management, investment research; matching emerging companies with cross-border investors |
External Roles
No current public company directorships for Hong Yu are disclosed; prior assistance to lead investor DST Capital on board/management/governance matters at HRGN is noted .
Fixed Compensation
| Component | FY 2023 | FY 2024 |
|---|---|---|
| Base Salary ($) | $178,846 | $210,000 |
| Stock Awards ($) | — | — |
| Option Awards ($) | — | — |
| All Other Compensation ($) | $10,219 (401k match $8,942; life insurance $1,277) | $11,777 (401k match $10,500; life insurance $1,277) |
| Total ($) | $189,065 | $221,777 |
Notes:
- At-will employment; eligible for Amended and Restated Equity Incentive Plan and standard benefits .
Performance Compensation
| Metric Type | Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| Stock Options (Time-based) | Option grants vest in 4 equal annual tranches (Dec 29, 2021–Dec 29, 2024) | N/A | N/A | N/A | N/A | Four annual installments through Dec 29, 2024 |
| Stock Options (Milestone-based) | Board-determined milestones (undisclosed) | N/A | Undisclosed | Undisclosed | Vests upon milestone achievement | Vests in milestone increments for May 29, 2018 grant; portions remain unexercisable pending milestones |
Notes:
- No FY2024 annual long-term option grants to NEOs; historic grants apply for Yu .
- Specific performance metrics (e.g., revenue, EBITDA, TSR) tied to Yu’s awards are not disclosed; milestone details are Board-determined and undisclosed .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 527,756 shares; 3.3% of outstanding common stock |
| Composition | 266,979 common shares; 260,777 options exercisable within 60 days |
| Stock Ownership Guidelines | Not disclosed in proxy – |
| Hedging / Short Sales | Prohibited under insider trading policy (no options/derivatives, no short sales) |
| Pledging | No explicit pledging allowance disclosed; plan prohibits pledging of unvested restricted stock; options noted separately |
| Compliance With Guidelines | Not applicable (guidelines not disclosed) – |
Outstanding Option Positions (as of Dec 31, 2024)
| Grant | Exercisable (#) | Unexercisable (#) | Exercise Price ($) | Expiration | Vesting Terms |
|---|---|---|---|---|---|
| May 18, 2022 (sales commission-related) | 22,089 | — | 4.71 | 5/18/2032 | Fully vested |
| Dec 29, 2021 (time-based) | 84,837 | 28,279 | 2.30 | 12/29/2031 | Four equal annual installments through 2024 |
| May 29, 2018 (time-based) | 104,643 | — | 2.72 | 5/29/2028 | Four equal annual installments through 2021 |
| May 29, 2018 (milestone-based) | 20,929 | 83,714 | 2.72 | 5/29/2028 | Vests upon Board-set milestone achievement |
Implications:
- Material unexercisable milestone-based tranche (83,714) could create event-driven vesting and potential selling pressure if milestones are achieved; expirations in 2028 and 2031 provide multiple decision windows .
Employment Terms
| Term | Detail |
|---|---|
| Role & Start Date | President; appointed May 29, 2018; offer letter executed May 16, 2018 |
| Tenure | Serving since May 2018 (disclosed as May 31, 2018 in 10-K) |
| Employment Status | At-will |
| Base Salary | $210,000 effective July 1, 2023 (from $150,000) |
| Bonus | Not disclosed for Yu (CEO has disclosed target bonus eligibility; Yu’s bonus not specified) |
| Benefits | Eligible for equity plan, retirement plans, stock purchase plans, medical insurance |
| Change-in-Control | Plan-level single-trigger acceleration: all outstanding options become fully vested/exercisable upon consummation of a Sale Event/Change of Control |
| Clawbacks | Not specifically disclosed – |
| Anti-Hedging | Hedging and short sales prohibited |
Company Performance Context
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($) | —* | 103,000* | 430,000* |
| EBITDA ($) | (6,014,000)* | (8,955,000)* | (7,212,000)* |
| Net Income (Loss) ($) | (6,073,000)* | (8,945,000)* | (7,732,000)* |
Values retrieved from S&P Global.*
| Shareholder Return (Value of $100 Investment) | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Value at Year-End ($) | 274 | 296 | 130 |
Notes:
- Net loss figures also corroborated in Pay vs Performance table (in $ thousands): (6,253) for 2022, (9,022) for 2023, (7,732) for 2024 .
Governance & Committees (context)
- Compensation Committee: Members Ting Li, Jason Jing Chen, James Shmerling (Chair); independent; acted by written consent in 2024; administers stock plans and reviews executive compensation .
- Say-on-Pay: Non-binding advisory vote included as Proposal 6; vote requires majority of votes cast; board recommends FOR; percentages not disclosed in the proxy .
Investment Implications
- Alignment: Yu’s 3.3% beneficial ownership plus significant option exposure aligns incentives with equity value creation; anti-hedging policy further reinforces alignment .
- Retention Risk: At-will status with no disclosed severance; compensation skewed toward cash in 2023–2024 with legacy options outstanding; plan-level CoC acceleration may reduce retention frictions around transactions but could incentivize milestone/event timing .
- Trading Signals: Milestone-based option tranches (83,714) and expirations (2028/2031/2032) are potential catalysts for exercise/selling; monitor filings for milestone achievement and Form 4 activity ahead of expirations .
- Pay-for-Performance: Proxy shows declining shareholder value in 2024 (value of $100 investment fell to $130) alongside continuing net losses, while Yu’s pay remained modest and primarily fixed; lack of disclosed annual equity grants in 2024 suggests limited incremental dilution from executive awards that year .