Steven Stein
INCYTEAbout Steven Stein
Executive Vice President & Chief Medical Officer (CMO) at Incyte since May 2016; joined as SVP & CMO in March 2015. Age 57; M.D. from the University of Witwatersrand (Johannesburg), fellowship in hematology/oncology at the University of Pennsylvania; >100 scientific papers; Adjunct Assistant Professor, University of Pennsylvania . Company performance in 2024: product revenues (net) $3,618.9M and net income $32.6M; company TSR value $79.10 versus peer group (Nasdaq Biotech Index) $113.84; total product and royalty revenues grew 15% to $4.2B (diversification beyond Jakafi) . Clinical execution under Stein includes FDA approval of Niktimvo (cGVHD), positive Phase 3 readouts for tafasitamab (FL), and Povorcitinib Phase 3 success in HS .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Novartis Oncology | SVP, US Clinical Development & Medical Affairs | 2011–2015 | Led US clinical and medical affairs; oncology portfolio advancement |
| GlaxoSmithKline | VP, Global Oncology Clinical Development; Head, Hematology & Supportive Care Medicines Development | 2004–2011 | Global development leadership across oncology/hematology |
| University of Pennsylvania | Hematology/Oncology Fellowship | 1998–2001 | Academic and clinical foundation in oncology |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Repare Therapeutics (Nasdaq: RPTX) | Director; Science & Technology Committee member | 2024–present | Appointed April 2024; precision oncology focus |
| Kura Oncology (Nasdaq: KURA) | Director | 2017–2023 | Prior public company directorship |
| University of Pennsylvania | Adjunct Assistant Professor | Ongoing | >100 publications; academic affiliations |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | 741,567 | 775,580 | 806,406 |
| Non-Equity Incentive (Annual Bonus) ($) | 450,781 | 508,549 | 720,553 |
| All Other Compensation ($) | 30,136 | 31,256 | 32,305 |
| Total ($) | 7,392,749 | 5,628,093 | 5,979,828 |
2024 annual bonus determination (plan details):
| Component | Year-end Salary ($) | Target Bonus (%) | Overall Multiplier (%) | Bonus Award ($) |
|---|---|---|---|---|
| Steven H. Stein | 808,701 | 60.0% | 148.5% | 720,553 |
Performance Compensation
Equity mix and design for U.S.-based executives (including Stein):
- 2024 mix: 50% performance shares (PS), 30% stock options, 20% RSUs; PS have 3-year performance period and cliff vest; options 10-year term, 4-year vesting (25% at year 1, remainder monthly); RSUs vest 25% annually over 4 years .
- 2025 mix unchanged for U.S. executives; PS for 2024–2025 include wholly relative TSR components; anti-hedging; clawback policy adopted .
2024 annual incentive plan metrics and outcomes (company-wide measures used for NEO payouts):
| Metric | Weighting / Points | Target | Actual Outcome | Payout Contribution |
|---|---|---|---|---|
| NA Oncology net product sales (Jakafi bottles shipped) | 15 points | 217,000 bottles | Achieved above target | 17 points |
| Rest of World (ROW) net product sales | 5 points | $230.0M outperform | $250.6M actual | 7.5 points |
| NA Dermatology net product sales (Opzelura) | 22 points | $492M target | $447M actual (threshold met) | 12 points |
| Hematology & Oncology clinical milestones | Two goals; 7.5 points each | Milestone attainment | Both achieved | +15 points total |
| Inflammation & Autoimmunity enrollment goal (HS Phase 3) | Not specified | Complete enrollment by date | Not achieved | 0 points |
Performance share vesting and earn-outs (recent cycles):
| Award | Performance Basis | Earned % | Vesting |
|---|---|---|---|
| PS granted July 2022 (U.S. executives) | Development, revenue, relative TSR vs NBI | 110.7% earned | Vest on 3rd anniversary (July 2, 2025) |
| PS granted Dec 2022 (Opzelura revenue triggers) | Opzelura global revenue 2024 | 123.0% earned | Vest Nov 30, 2025 |
| PS granted July 2024 | Relative TSR vs NBI | 0–200% payout range | Vest on 3rd anniversary (July 15, 2027) |
Key 2024 grants and option terms for Stein:
| Grant Date | Type | Shares | Exercise Price ($) | Expiration | Vesting |
|---|---|---|---|---|---|
| 1/18/2024 | Stock Options | 10,830 (exercisable), 19,750 (unexercisable) | 61.18 | 1/17/2034 | 25% yr1, monthly thereafter |
| 7/15/2024 | Stock Options | 31,088 (unexercisable) | 64.25 | 7/14/2034 | 25% yr1, monthly thereafter |
| 7/15/2024 | RSUs | 13,895 (unvested) | N/A | N/A | 25% annually over 4 years |
| 7/14/2023 | PS (target) | 33,838 | N/A | N/A | Cliff vest at 3 years; 0–150% earn-out |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership | 266,590 shares; “*” indicates <1% of outstanding (193,569,840) |
| 2024 vesting activity | 21,479 shares vested (RSUs/PS); 9,871 withheld for taxes |
| Unvested RSUs (examples) | 23,044 (1/15/2021; 4-year cliff), 28,926 (1/1/2022; single installment 12/31/2025), 13,895 (7/15/2024; 4-year) |
| Unearned PS (examples) | 33,838 (7/14/2023 target); 34,739 (7/15/2024 target) |
| Stock ownership guidelines | Executives must hold ≥3x annual base salary; all execs compliant or within 5-year window |
| Hedging/pledging | Prohibited for employees and directors (no short sales, options, or pledging) |
| Trading plans | Executives required to use 10b5‑1 plans for stock trading |
Employment Terms
- Change-in-control (CIC) economics (Executive Vice Presidents): Double-trigger vesting; cash severance equals 2× current base salary plus the greater of current target bonus or prior-year bonus; 12 months of COBRA and insurance reimbursements; immediate vesting of all unvested stock options; options exercisable for 12 months post-termination .
- Modeled CIC outcome for Stein (as of 12/31/2024): Cash $3,119,721; medical/insurance benefits $42,624; acceleration of equity $15,234,065; other $77,760; total $18,474,170 .
- Termination without CIC: Table shows no cash severance for Stein; equity acceleration $6,377,562 and other $77,760 .
- Clawbacks: SEC/Nasdaq-compliant compensation recovery policy; legacy policy for fraud/misconduct restatements (3-year look-back) .
- Tax gross-ups: No golden parachute excise tax gross-ups; minor tax gross-ups applied to certain perquisites (e.g., financial planning) .
Performance & Track Record
| Area | Highlights |
|---|---|
| Portfolio execution | FDA approval of Niktimvo (axatilimab-csfr) for cGVHD (Jan 2025); positive Phase 3 tafasitamab in FL; CDK2 Phase 1 activity; ruxolitinib XR bioequivalence |
| Dermatology | Opzelura growth; pediatric AD sNDA submitted (approval anticipated 2H25) |
| Inflammation (HS) | Povorcitinib Phase 3 STOP-HS trials met primary endpoints at both doses; strong pain reduction and biologic-exposed subgroup efficacy |
| Commercial metrics | 2024 company product revenues (net) $3,618.9M; TSR $79.10 (peer $113.84); net income $32.6M |
| Say-on-pay | Advisory approval sought and received annually since 2011 |
Fixed Compensation – Perquisites (Selected)
| Category | 2024 Amount ($) |
|---|---|
| Life insurance premiums | 4,902 |
| Financial planning services (incl. tax gross-up) | 2,303 (gross-up $713) |
| Statutory fee (EU subsidiary director) | 4,400 |
| 401(k) matching contributions | 20,700 |
Compensation Structure Analysis
- Increased at-risk equity weighting (50% PS for executives) and use of multi-year relative TSR sharpen pay-for-performance alignment; PS cliff vesting concentrates outcomes in 2025–2027, increasing retention but creating lumpy supply upon vest .
- Annual incentive plan balanced between commercial (Jakafi shipments; ROW sales; Opzelura), clinical milestones (Heme/Onc), and IAI targets; underperformance in NA dermatology vs target tempered overall multiplier; clinical goals achieved, reinforcing development execution .
- Governance safeguards include clawbacks, anti-hedging/pledging, and robust ownership guidelines (3× salary); no option repricing; no golden parachute excise tax gross-ups .
Equity Compensation – Outstanding Awards Snapshot (Examples)
| Type | Key Holdings |
|---|---|
| Options | 1/18/2024 grant at $61.18 (10,830 exercisable; 19,750 unexercisable); 7/15/2024 grant at $64.25 (31,088 unexercisable) |
| RSUs | 23,044 (1/15/2021; 4-year cliff); 28,926 (1/1/2022; single installment 12/31/2025); 13,895 (7/15/2024; 4-year) |
| Performance Shares | 33,838 target (7/14/2023); 34,739 target (7/15/2024; TSR 0–200%) |
| 2024 vesting | 21,479 shares vested; tax withholding of 9,871 shares |
Investment Implications
- Alignment: Heavy PS weighting and rigorous TSR framework support shareholder alignment; ownership guidelines and anti-hedging/pledging reduce misalignment risks .
- Retention risk: Significant unvested PS and RSUs (2025–2027) likely anchor tenure; absence of single-trigger CIC vesting reduces event-driven windfalls .
- Trading signals: Required 10b5‑1 plans and no pledging mitigate opportunistic selling; watch 2025 vest events (Nov 30/Dec 31) and July 2025 PS cliff for potential supply overhang .
- Execution: Recent approvals and pivotal readouts (cGVHD, FL, HS) under Stein’s medical leadership improve pipeline visibility; however, 2024 net income was modest ($32.6M) despite strong product revenues, suggesting continued investment intensity and margin sensitivity .
- Governance: Consistent say-on-pay approval and independent Comp Committee oversight (Compensia; peer benchmarking) lower compensation inflation risk, though peer group updates should be monitored for ratcheting .