Adam Zaeske
About Adam Zaeske
Adam Zaeske is Executive Vice President and Chief Commercial Officer of Harmony Biosciences (HRMY), appointed effective March 31, 2025; he is 52 years old and holds a B.B.A. from the University of Michigan and an M.B.A. from Harvard Business School . He brings 25+ years of global pharma leadership, most recently as Takeda SVP/Head of Central, South & Eastern Europe, where he led a $2B business across 25 countries and ~900 employees, delivering three consecutive years of double‑digit growth and the largest regional revenue/growth contribution to Takeda’s Europe/Canada unit . Company performance context: Harmony’s Net Product Revenue grew from $437.9M (FY22) to $582.0M (FY23) to $714.7M (FY24) ; EBITDA was $143.6M (FY22), $216.4M (FY23), $214.9M (FY24)* (values retrieved from S&P Global). Pay-versus-performance disclosure shows TSR values of $87 (2023) and $93 (2024) on a $100 initial investment benchmark, with Net Income of $128.9M (2023) and $145.5M (2024) and Net Product Revenue of $582.0M (2023) and $714.7M (2024) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Takeda Pharmaceuticals | SVP & Head of Central, South & East Europe | 2022–2025 | Managed ~$2B across 25 countries/≈900 employees; delivered 3 consecutive years of double‑digit growth; largest revenue/growth contributor for Europe/Canada . |
| Takeda Pharmaceuticals | Various senior commercial roles | 2004–2022 | 25+ years leadership across multiple therapeutic areas; US and Europe experience . |
| Baxter International | Global Marketing Manager | 2002–2004 | Global marketing leadership (pre‑Takeda) . |
External Roles
No public company board roles or external directorships disclosed for Zaeske in the proxy or 8‑K .
Fixed Compensation
- Specific base salary, target bonus %, and any sign‑on/retention compensation for Zaeske have not been disclosed as of the 2025 proxy and March 24, 2025 8‑K appointment announcement .
Performance Compensation
Company’s annual bonus framework (applies to NEOs and executive officers; Zaeske’s 2025 metrics not yet disclosed):
| Metric | Weighting | Target (Meets Expectations) | Actual 2024 | Performance Level | Payout (% of metric) |
|---|---|---|---|---|---|
| Net Product Revenue (WAKIX) | 25% | $710M (up to $750M) | $714.7M | Meets Expectations | 100% |
| Clinical Development Programs | 20% | Committee‑set goals | Achieved | Exceeds Expectations | 150% |
| Corporate Transaction Goals | 25% | Committee‑set goals | Achieved | Exceeds Expectations | 150% |
| Financial Health Goals | 25% | Stock performance vs peer group and NASDAQ Biotech Index | Achieved | Meets Expectations | 100% |
| Talent & Culture Goals | 5% | Committee‑set goals | Achieved | Exceeds Expectations | 150% |
- 2024 company performance goals paid out at 123% of target for most NEOs (Kapadia at 115%) .
- Long-term incentives: HRMY emphasizes options and RSUs for executives; 2024 program granted options with 4‑year vesting (25% cliff at year 1, then quarterly over 3 years) and RSUs vesting 25% annually over 4 years for NEOs .
Equity Ownership & Alignment
- Stock ownership guidelines effective Jan 1, 2025: CEO 5× salary; other executive officers 3× salary; directors 1.5× annual cash retainer. Compliance expected within 3 years, or by Dec 31, 2026 for those covered at adoption .
- Anti‑hedging policy: prohibits hedging/monetization transactions (e.g., zero‑cost collars, forward sale contracts) for directors, officers, employees, and specified consultants .
- Clawback policy: recovery of erroneously paid incentive compensation for Section 16 officers (covers time‑vested and performance‑vested equity), effective for compensation received on/after Oct 2, 2023 .
- Change‑in‑control equity treatment: under the 2020 Plan, if awards are assumed and the participant is terminated not for cause within 12 months post‑CIC, unvested awards fully vest; options have at least 6 months post‑termination exercise window .
- Beneficial ownership: individual holdings for Zaeske were not listed; the table covers >5% holders, directors, and NEOs as of March 17, 2025 .
Employment Terms
| Item | Detail |
|---|---|
| Appointment | EVP & Chief Commercial Officer, effective March 31, 2025 . |
| Responsibilities | Lead commercial org; set commercial strategy; drive US and international market expansion; execution across brands/geographies . |
| Contract terms | Offer letter/employment agreement terms (salary, bonus, equity, severance) not disclosed in 8‑K or proxy . |
| Severance/Restrictions (Company policies) | Separation Plan (for eligible employees) provides cash severance (pro‑rated bonus + ½ salary + 6 months healthcare) and outplacement if terminated without cause/for good reason around a CIC, subject to release and restrictive covenants (non‑compete, non‑solicit, confidentiality, non‑disparagement) . |
| Related policies | No tax gross‑ups for 280G/4999 excise taxes; compensation structured to be 409A‑compliant/exempt . |
Company Performance Context
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($USD) | $437,855,000 | $582,022,000 | $714,734,000 |
| EBITDA ($USD) | $143,571,000* | $216,389,000* | $214,938,000* |
Values with asterisk retrieved from S&P Global.
Compensation Governance and Peer Practices
- Independent compensation consultant (Pay Governance) advises the Compensation Committee; no conflicts disclosed .
- 2024 compensation peer group used to inform decisions includes neurology/biotech firms (e.g., Acadia, Axsome, Ionis, Neurocrine, Supernus, Alkermes, Catalyst, Jazz, PTC, Avadel, Intra‑Cellular, Sage, etc.) .
- Governance “What We Do/Don’t Do”: performance‑based, at‑risk pay; heavy equity usage; hedging prohibited; clawback policy maintained; no tax gross‑ups; no defined benefit pensions/SERP .
- Say‑on‑Pay approval: 97.6% support in 2023; next vote in 2026 per triennial cadence preference .
Risk Indicators & Red Flags
- Anti‑hedging and clawback policies mitigate misalignment risk .
- No tax gross‑ups for CIC excise taxes (shareholder‑friendly) .
- Leadership transition in Commercial: prior CCO’s separation included accelerated vesting for awards that would have vested in 2025 and lump‑sum cash; underscores emphasis on continuity but also highlights transition execution risk .
- Pledging: no explicit anti‑pledging disclosure in proxy; hedging prohibited—monitor future policy updates .
Investment Implications
- Alignment: Ownership guidelines (3× salary for execs), anti‑hedging, and clawback policies signal strong pay‑for‑performance design; equity acceleration only upon CIC and qualifying termination aligns with retention through strategic events .
- Execution upside: Zaeske’s track record driving multi‑country growth and scaling commercial capabilities in rare disease and neuroscience is accretive to HRMY’s ambition to expand WAKIX and advance late‑stage assets to approvals across geographies .
- Near‑term monitoring: Watch for Form 4 filings disclosing Zaeske’s initial equity grants and ownership; track 2025 bonus plan metrics and any commercial expansion KPIs (US/international revenue mix, market access wins) in upcoming disclosures; assess attrition risk only once employment terms are disclosed .
- Governance support: High Say‑on‑Pay support and peer‑benchmarked compensation reduce inflation risk; no 280G/4999 gross‑ups and robust clawback help contain downside governance risk .
Citations:
- Appointment, responsibilities, education: **[1802665_0001558370-25-003502_hrmy-20250320x8k.htm:2]** **[1802665_0001140361-25-012336_ny20043375x1_def14a.htm:26]**
- Age (executive officers table): **[1802665_0001140361-25-012336_ny20043375x1_def14a.htm:25]**
- Takeda impact ($2B, 25 countries, double-digit growth): **[1802665_0001558370-25-003502_hrmy-20250320xex99d1.htm:0]**
- Annual bonus framework, weights, targets, actuals, payouts: **[1802665_0001140361-25-012336_ny20043375x1_def14a.htm:33]**
- Equity vesting schedules and LTI structure: **[1802665_0001140361-25-012336_ny20043375x1_def14a.htm:34]** **[1802665_0001140361-25-012336_ny20043375x1_def14a.htm:45]**
- Stock ownership guidelines: **[1802665_0001140361-25-012336_ny20043375x1_def14a.htm:36]**
- Anti-hedging policy: **[1802665_0001140361-25-012336_ny20043375x1_def14a.htm:19]**
- Clawback policy: **[1802665_0001140361-25-012336_ny20043375x1_def14a.htm:36]**
- Separation Plan CIC/severance mechanics: **[1802665_0001140361-25-012336_ny20043375x1_def14a.htm:47]**
- Beneficial ownership coverage (as of Mar 17, 2025): **[1802665_0001140361-25-012336_ny20043375x1_def14a.htm:57]**
- Pay versus performance TSR/Net Income/Revenue: **[1802665_0001140361-25-012336_ny20043375x1_def14a.htm:51]**
- Compensation consultant and peer group: **[1802665_0001140361-25-012336_ny20043375x1_def14a.htm:31]**
- Compensation governance practices and Say-on-Pay: **[1802665_0001140361-25-012336_ny20043375x1_def14a.htm:30]**
- Prior CCO separation terms: **[1802665_0001558370-25-003502_hrmy-20250320x8k.htm:1]** **[1802665_0001558370-25-003502_hrmy-20250320xex10d1.htm:1]**
- Company Revenues (GetFinancials): FY22 $437.855M **[1802665_0001558370-23-001574_hrmy-20221231x10k.htm:135]**, FY23 $582.022M **[1802665_0001558370-24-001466_hrmy-20231231x10k.htm:150]**, FY24 $714.734M **[1802665_0001558370-25-001441_hrmy-20241231x10k.htm:138]**
- EBITDA (GetFinancials): FY22 $143.571M*, FY23 $216.389M*, FY24 $214.938M* (Values retrieved from S&P Global)