Jacob Thaysen
ILLUMINAAbout Jacob Thaysen
Illumina’s CEO since September 25, 2023 (age 49), with M.Sc. and Ph.D. in Physics from the Technical University of Denmark. Prior roles include leading Agilent’s Life Sciences & Applied Markets Group and its Diagnostics & Genomics Group, with deep operating experience across genomics tools, clinical diagnostics, R&D, and commercial execution . During his tenure, Core Illumina delivered 2024 revenue of $4.33B (-2% YoY) and non-GAAP operating profit of $922M (+4% YoY), alongside margin improvement and resumed buybacks . Over 2020–2024, Company TSR underperformed peers (value of $100 fell to $41.86 vs $118.54 for the NASDAQ Biotech Index peer group) .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Illumina | Chief Executive Officer | 2023–present | Reset strategy toward profitable growth; NovaSeq X transition; operational excellence initiatives |
| Agilent Technologies | SVP, President Life Sciences & Applied Markets Group | 2018–2023 | Drove largest division; operating margin ~30% in 2022; led instrument/informatics portfolio and cell analysis expansion |
| Agilent Technologies | SVP, President Diagnostics & Genomics Group | 2014–2018 | Built foundation for diagnostics and clinical growth |
| Dako (acquired by Agilent) | Corporate VP, R&D (and prior roles) | 2010–2013 | Advanced cancer diagnostics R&D platforms |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| ALDA (Analytical, Life Science & Diagnostics Association) | Chair | 2023–present | Industry advocacy and network leadership |
| Other public company boards | — | — | None reported (0 other boards) |
Fixed Compensation
| Element | 2023 | 2024 | Notes |
|---|---|---|---|
| Base salary | $1,000,000 | $1,000,000 | CEO salary unchanged YoY |
| Target annual bonus (% salary) | 125% (effective 2024) | 125% | Established in offer letter; applies from 2024 |
| Actual annual bonus (VCP) | N/A (no 2023 VCP) | $1,162,500 (93% of target) | 2024 payout based on Company performance |
| Sign-on cash | $500,000 (clawback if resign/for-cause within 2 yrs) | — | Make-whole for prior employer bonus |
Performance Compensation
- Annual bonus structure (2024): Two metrics equally weighted 50%/50% — Core Illumina Revenue and Core Illumina Non-GAAP Operating Income, with 0–200% payout curve; 2024 result: 93% of target .
| 2024 VCP Metric | Threshold ($M) | Target ($M) | Maximum ($M) | Actual ($M) | Achievement | Payout vs Target |
|---|---|---|---|---|---|---|
| Core Revenue (50%) | 4,194 | 4,461 | 4,727 | 4,369 | 83% | 50% |
| Core Non-GAAP Op Income (50%) | 1,027 | 1,261 | 1,417 | 1,265 | 103% | 100% |
| Total | — | — | — | — | — | 93% |
- Equity structure and metrics:
- 2024 annual grant mix: 70% PSUs (Operating Margin 3-year average + 3-year rTSR vs NASDAQ Biotech Index), 30% RSUs; PSU cap 200% of target; if 3-year absolute TSR is negative, rTSR PSU payout capped at 100% .
- CEO post-vesting 12-month holding requirement on annual equity .
| Grant | Grant date | Type | Shares/Target | Grant date FV | Vesting | Performance metric |
|---|---|---|---|---|---|---|
| Annual PSUs (rTSR) | Mar 5, 2024 | PSU | 26,508 target | $4,806,220 | Cliff Jan 3, 2027 | 3-yr rTSR vs NASDAQ Biotech; cap 200%; 100% cap if abs TSR<0 |
| Annual PSUs (Op Margin) | Mar 5, 2024 | PSU | 26,508 target | $3,500,064 | Cliff Jan 3, 2027 | 3-yr avg Operating Margin; cap 200% |
| Annual RSUs | Mar 5, 2024 | RSU | 22,722 | $3,000,132 | 25%/yr over 4 yrs | Service-vesting |
| Matching RSUs (1:1 open-market buys) | Mar 5, 2024 | RSU | 7,575 | $1,000,134 | 100% on Mar 5, 2027; must hold purchased shares | Service + holding |
| Make-whole PSUs | Oct 5, 2023 | PSU | 17,572 target | $2,844,553 | Cliff Dec 28, 2025 | 3-yr rTSR vs NASDAQ Biotech |
| Make-whole RSUs | Oct 5, 2023 | RSU | 7,531 | $1,050,047 | 1/3 annually over 3 yrs | Service-vesting |
- Historical PSU outcomes: 2021–2023 EPS PSUs paid 0% (below threshold) . 2022–2024 and 2023–2024 PSU plans (as disclosed in 2025) also paid 0% for EPS components, reflecting strict goals and aligning with “pay for performance” .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership | 12,594 shares as of Mar 26, 2025 (<1% outstanding) |
| Outstanding CEO equity (12/27/2024) | Examples: 22,722 RSUs ($3.07M), 7,575 matching RSUs ($1.03M), PSU targets 26,508 (rTSR) and 26,508 (Op Margin) outstanding at target; market value at $135.27 used for tabulation |
| Ownership guidelines | CEO: 6x base salary; RSUs count; PSUs and options do not; 5-year compliance period |
| Holding requirement | 12-month post-vesting hold on CEO annual equity |
| Hedging/pledging | Prohibited for directors and executive officers |
Vesting-driven selling pressure signals:
- Annual RSUs vest 25% per year (2024 grant), while 2023 make-whole RSUs vest over 3 years; matching RSUs cliff-vest in 2027 — creates clustered 2025–2027 vesting events. However, 12-month post-vesting hold on annual equity and guideline retention requirements moderate near-term sale capacity .
Employment Terms
- Start date and role: Appointed CEO effective September 25, 2023; concurrently appointed to the Board (no extra director pay) .
- Offer letter key terms: Salary $1,000,000; 2024 target bonus 125% of salary; annual equity target $10,000,000 (70% PSUs/30% RSUs) with 12-month post-vesting hold; $500,000 sign-on cash (2-year clawback on resign/for-cause); make-whole equity ($3.5M, 70% PSUs/30% RSUs); RSU matching up to $1,000,000 for open-market purchases; relocation stipend of $15,000/month through June 30, 2024 .
- Change-in-control (CIC) agreement (auto-renewing term; double-trigger within 2 years post-CIC): 2x (salary + greater of target or last bonus), pro-rata target bonus, up to 24 months COBRA at active rates, perquisites continuation 24 months, full vesting of unvested equity at 100% achievement, and up to 2 years outplacement; best-net cutback (no excise tax gross-up); arbitration; California law .
Performance & Track Record
| Metric | 2020 base | 2024 result | Peer/Context |
|---|---|---|---|
| TSR – $100 initial value | $100 (base) | $41.86 | Peer group $118.54 (NASDAQ Biotech Index) |
| Core Illumina Revenue | — | $4.33B (FY24, -2% YoY; FY23 $4.44B) | — |
| Core GAAP Operating Profit | — | $1.47B (FY24, +167% YoY) | — |
| Core Non-GAAP Operating Profit | — | $922M (FY24, +4% YoY) | — |
Qualitative highlights under Thaysen:
- Strategic reset toward “high single-digit revenue growth by 2027,” cost actions >$100M run-rate savings, NovaSeq X adoption, product/chemistry rollouts, and entry scaling into multiomics; completed GRAIL separation in June 2024 and refreshed Board/committee leadership .
Execution risk:
- TSR underperformance vs peers, multi-year PSU non-payouts on EPS metrics, and continued macro headwinds (funding, China restrictions) cited in governance/forward-looking disclosures .
Board Governance (Director Service by CEO)
- Board role: Director since 2023; no committee assignments; other public company boards: 0 .
- Independence: Independent Chair (Scott Gottlieb) elected March 2025; all committees 100% independent; CEO is not Chair, mitigating dual-role concerns .
- Attendance and meetings: Board held 9 meetings in 2024; committees: Audit 10, Compensation 7, Nominating/Corporate Governance 5, Science & Technology 4; executive sessions of independent directors held regularly .
- Director compensation: CEO receives no additional compensation for director service .
Director Compensation (Context, not paid to CEO)
- Non-employee directors receivable: $75,000 cash retainer, committee fees (chairs/members), and ~$300,000 annual RSU (one-year vest); independent Chair retainer increased to $100,000 in 2025 .
Say-on-Pay & Shareholder Feedback
- 2024 Annual Meeting Say-on-Pay passed: For 113,511,456; Against 16,719,619; Abstain 1,063,352; broker non-votes 10,538,646 .
- Compensation design changes reflecting feedback: VCP moved to full-year period; PSU mix raised to 70%; all PSUs now 3-year periods; CEO 6x ownership + 12-month post-vest hold; RSU match for open-market purchases .
Compensation Peer Group (for benchmarking)
- Emphasis shifted toward life science peers; examples include Agilent, Biogen, DexCom, Edwards Lifesciences, Intuitive Surgical, KLA, Mettler-Toledo, Palo Alto Networks, Regeneron, ResMed, Vertex, Waters, West Pharma, Align, IDEXX, Hologic, Cooper .
- No fixed percentile targeting; market data is one input alongside internal factors and judgment .
Compensation Structure Analysis
- Strong at-risk pay mix: >85% of executive target comp at risk; CEO annual equity 70% PSUs tied to multi-year goals; post-vest holding and higher ownership requirement align with investor preferences .
- Discipline on outcomes: Multi-year EPS PSUs paid 0% for 2021–2023; 2024 annual bonus paid below target (93%), reflecting mixed top-line vs margin performance .
- Potential dilution managed: 3-year average burn rate ~1.8%; 2025 plan proposes an additional 7.9M shares with overhang disclosure (10.48% raw; 9.48% diluted) .
Risk Indicators & Red Flags
- Hedging/pledging prohibited; robust clawback compliant with SEC/Nasdaq .
- Double-trigger CIC with best-net cutback (no tax gross-up) .
- TSR underperformance vs peers and prior multi-year EPS PSU non-payouts highlight execution risk and potential incentive recalibration pressure .
Equity Ownership & Beneficial Ownership Table (Selected CEO line)
| Name | Common Stock Beneficially Owned | Options Ex. in 60 days | Total Beneficial | % |
|---|---|---|---|---|
| Jacob Thaysen | 12,594 | 0 | 12,594 | * (<1%) |
Employment & Contracts (Key Economics)
| Provision | CEO Terms |
|---|---|
| CIC severance multiple | 2x (base + greater of target/last bonus) |
| Bonus pro-rata on termination | Yes (target) |
| COBRA/perqs continuation | 24 months |
| Equity vesting on CIC+termination | Full acceleration at 100% achievement |
| Outplacement | Up to 2 years |
| Agreement term | 3 years, auto-renews annually unless 90-days notice |
| Arbitration / law | Arbitration; California law |
Investment Implications
- Alignment improving: Higher PSUs (70%), tougher multi-year goals (Operating Margin+rTSR), ownership/holding policies, and clawbacks tie realized pay more tightly to sustained value creation .
- Retention risk is moderate near term: Multi-year RSU/PSU overhang and CIC terms support stability; matching RSU cliff and post-vest hold reduce immediate liquidity, limiting near-term selling pressure .
- Execution is the lever: 2024 margin progress and VCP payout below target reflect mixed fundamentals; TSR underperformance vs peers underscores need for durable growth/margin expansion to drive PSU outcomes and investor confidence .
- Governance mitigants: Independent Chair, 100% independent committees, no hedging/pledging, no tax gross-up; 2024 Say-on-Pay support suggests investor buy-in to redesigned incentives .