Sumi Shrishrimal
iRhythm TechnologiesAbout Sumi Shrishrimal
Executive Vice President and Chief Risk Officer at iRhythm Technologies (IRTC); age 46; in role since May 2022; prior experience spans enterprise risk and internal audit in medtech and education; B.A. in Accounting and Information Systems from University of Mumbai . Company performance context relevant to CRO incentives: 2024 revenue grew 20.1% YoY to $592M, adjusted EBITDA margin was -1.3% and net loss was $113.3M; five-year revenue CAGR exceeded 22% . The Board added an FDA remediation metric to 2025 short‑term incentives, increasing profitability weightings—directly tying executive pay to regulatory progress .
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue ($USD Millions) | $265 | $323 | $411 | $493 | $592 |
| Net Income ($USD Millions) | $(44) | $(101) | $(116) | $(123) | $(113) |
| Adjusted EBITDA Margin (%) | — | — | — | — | -1.3% |
| TSR – $100 Initial Investment (Company) | $348.38 | $172.84 | $137.57 | $157.20 | $132.43 |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| DexCom, Inc. | Chief Risk Officer; prior roles | 2018–2022 | Enterprise risk leadership in medtech operations |
| NuVasive, Inc. | Vice President, Internal Audit; Senior Director, Internal Audit | 2014–2018 | Internal audit governance and control framework |
| Corinthian Colleges | Vice President, Internal Audit; prior roles | 2003–2014 | Internal audit oversight and compliance processes |
External Roles
No public company directorships disclosed for Shrishrimal in the proxy .
Fixed Compensation
| Element | Sumi-specific (2024) | Company Program Details |
|---|---|---|
| Base Salary | Not individually disclosed (not a 2024 NEO) | Salaries reviewed annually; typical increases ranged 3–7% for NEOs in 2024 |
| Target Bonus % | Not disclosed | 2024 STI: 75% Revenue, 25% Adjusted EBITDA, plus individual modifier (0–200%); 2025 STI: 50% Revenue, 40% Adjusted EBITDA, 10% Strategic FDA remediation |
| Perquisites | Not disclosed for Sumi; NEOs had <$10k each | Limited perquisites; no tax gross‑ups on perqs; broad‑based benefits only |
Performance Compensation
| Metric | 2024 Weighting | 2025 Weighting | Target Basis | Payout Mechanics |
|---|---|---|---|---|
| Revenue | 75% | 50% | Annual operating plan | Company score × individual modifier (0–200%) |
| Adjusted EBITDA | 25% | 40% | Annual operating plan | Company score × individual modifier (0–200%) |
| Strategic Objective (FDA remediation) | — | 10% | Regulatory remediation milestones | Company score × individual modifier (0–200%) |
| Long‑Term Incentive (LTI) | Design | Performance Metric | Vesting | Modifier |
|---|---|---|---|---|
| RSUs | 50% of annual LTI for executives | Time‑based | Typically over 4 years; example: equal annual installments over 4 years for CFO grant | N/A |
| PSUs | 50% of annual LTI for executives | 3‑year global unit volume CAGR; threshold 13%, target 18%, max 23% | Earn over 3 years | Relative TSR vs S&P Healthcare Equipment Select Industry Index |
Note: A 2023 special strategic PSU program tied to operational goals (e.g., cumulative 10M patient registrations, billing system operationalization, GBS center in Philippines, >10% adjusted EBITDA margin over two rolling quarters, MCT product launch) with a TSR modifier was granted to NEOs and certain managers; future one‑time awards will be limited to extraordinary circumstances. Individual participation for Shrishrimal was not disclosed .
Equity Ownership & Alignment
| Policy/Item | Detail |
|---|---|
| Stock Ownership Guideline (EVP) | 2× annual base salary; all executives are in compliance |
| Hedging/Pledging | Prohibited; no margin accounts or pledging of company stock |
| Clawbacks | Two robust policies: misconduct-based and restatement‑based (Nasdaq‑compliant) |
| Beneficial Ownership | Individual holdings for Shrishrimal not shown; group total for all execs/directors is 331,184 shares (1.1%) |
| RSU/PSU Vesting | RSUs typically four years; PSUs over three years tied to unit volume CAGR with TSR modifier |
Employment Terms
| Term | Non‑Change‑of‑Control | Change‑of‑Control (Double Trigger) |
|---|---|---|
| Eligibility | Executive CIC Policy covers VP+ roles (includes EVPs) | Executive CIC Policy covers VP+ roles (includes EVPs) |
| Severance (Tier 2 illustration) | 12 months base salary + up to 12 months COBRA (CFO example; Tier 2 standard) | 15 months base salary + up to 15 months COBRA + 100% of target bonus + 100% acceleration of unvested equity (performance equity assumed at target unless stated otherwise) (CFO example; Tier 2 standard) |
| Equity Treatment | No automatic acceleration | Full acceleration for unvested awards; PSUs treated at target unless the award specifies otherwise |
| Triggers | Qualifying termination (without cause or for good reason) | Change‑of‑control plus qualifying termination (double trigger) |
| Tax Gross‑ups | None; “better of” cut vs. full payment to avoid 280G excise | |
| Employment Nature | At‑will; standard confidentiality, IP assignment, and arbitration agreements | |
| Retirement Vesting Program | Continued RSU and prorated PSU vesting if age+service thresholds met (≥70 combined with ≥5 years, or ≥55 with ≥10 years; 12‑month notice; excludes awards granted within 1 year of retirement); none of NEOs currently meet thresholds |
Investment Implications
- Compensation alignment: Adding a 10% FDA remediation metric to 2025 STI and increasing EBITDA weighting ties executive payouts to regulatory progress and profitability—supportive for CRO-driven remediation focus and execution discipline .
- Retention risk: EVPs participate in the Executive CIC Policy with double‑trigger protection and meaningful severance/acceleration (Tier 2 standard), reducing flight risk during strategic transactions while avoiding single‑trigger windfalls .
- Governance signals: Removal of the equity plan evergreen provision reduces dilution risk; robust clawbacks and hedging/pledging bans strengthen shareholder alignment; EVP ownership guideline of 2× salary with full compliance adds “skin‑in‑the‑game” .
- Performance backdrop: Despite strong 20.1% YoY revenue growth to $592M in 2024, profitability remains negative (adjusted EBITDA margin -1.3%, net loss $113M), heightening emphasis on the new profitability/remediation incentive mix; TSR volatility underscores the importance of TSR modifiers in PSU design .
- Monitoring for selling pressure: Individual Form 4 trading activity for Shrishrimal is not disclosed in the proxy; watch for insider filings to assess vest-driven sales and potential overhang. Evergreen removal and double‑trigger equity acceleration help mitigate unexpected dilution and event‑driven selling .