Paul Blanchfield
Lantheus HoldingsAbout Paul Blanchfield
Paul M. Blanchfield (age 44) is President of Lantheus; he joined as Chief Commercial Officer in January 2020, was promoted to COO in June 2022, and to President in March 2023 . He holds an MBA and MA in Education from Stanford and an AB in Economics from Duke; his healthcare career spans leadership in sales, marketing, strategy, and operations . Under his executive tenure, Lantheus delivered 2024 Net Revenue of $1,533M vs a $1,465M target (Corporate Performance Factor 119.2%) and achieved a 200% payout on 2022 PSUs due to 100th percentile TSR relative to the S&P 600 Health Care Index, evidencing strong pay-for-performance alignment .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Takeda Pharmaceutical Co. | Head of U.S. Immunology Business Unit | Not disclosed | Managed a multi‑billion dollar P&L across rare diseases products . |
| Shire Plc | Head of U.S. Immunology; General Manager Nordic‑Baltics; Head of Corporate Strategy; Chief of Staff to the CEO | ~6 years | Launched multiple products; worked across nine countries; led restructuring to increase commercial focus and reduce costs; led M&A, corporate defense, integration, and long‑term portfolio strategy . |
| McKinsey & Company | Consultant (Healthcare, marketing, sales) | 5 years | Supported healthcare clients on growth and commercial excellence topics . |
External Roles
None disclosed in the proxy for Paul Blanchfield .
Fixed Compensation
Multi‑year reported pay (Summary Compensation Table):
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | 468,624 | 614,500 | 669,000 |
| Stock Awards ($) | 1,875,739 | 3,379,211 | 3,328,227 |
| Option Awards ($) | 570,615 | 749,918 | 787,483 |
| Non‑Equity Incentive Plan Comp ($) | 480,060 | 548,730 | 507,649 |
| All Other Compensation ($) | 13,725 | 12,881 | 15,525 |
| Total ($) | 3,408,763 | 5,305,240 | 5,307,884 |
Base salary increased 4.0% to $676,000 as of 12/31/2024 (from $650,000 at 12/31/2023) .
Performance Compensation
2024 Executive Bonus Plan – Corporate Inputs
| Metric | Weighting | Threshold | Target | Actual | Payout (% of Target) |
|---|---|---|---|---|---|
| Net Revenue | 40% | $1,319M | $1,465M | $1,533M | 123% |
| Bonus EPS | 30% | $5.02 | $5.91 | $6.17 | 115% |
| Strategic Component | 30% | 100% | 100% | 118% | 118% |
| Corporate Performance Factor | — | — | — | — | 119.2% |
Bonus EPS definition (comp program): adjusted net income excluding specified one‑time items; similar to Adjusted Diluted EPS but includes share‑based compensation .
2024 Individual Bonus Outcome (Paul Blanchfield)
| Base Salary | Target Bonus % | Corporate Performance Factor | Individual Performance Factor | Payout ($) |
|---|---|---|---|---|
| $676,000 | 60% | 119.2% | 105% | $507,649 |
Individual performance highlights: supported CEO transition and day‑to‑day operations; coached CCO; strengthened cross‑functional collaboration (Individual Performance Factor 105%) .
2024 Long‑Term Incentives (Grant Mix and Vesting)
PSUs are based 100% on rTSR vs S&P 400 Health Care Index (25th pct=50%, 50th=100%, 75th=200%); PSUs cliff vest 3 years; RSUs and stock options vest in 3 equal annual installments; options struck at fair market value .
| Grant Date | PSUs Target Units | RSUs Units | Options Units | Option Strike | Vesting |
|---|---|---|---|---|---|
| 3/1/2024 | 24,365 | 12,182 | 21,652 | $64.64 | PSUs cliff on 3/1/2027; RSUs/options in 3 annual tranches |
Historic PSU payout: 2022 PSUs paid at 200% (100th percentile TSR 1/1/2022–12/31/2024).
| Target PSUs Awarded (2022) | Resulting Share Payout |
|---|---|
| 13,769 | 27,538 |
Equity Ownership & Alignment
Beneficial Ownership (Record date: Mar 3, 2025)
| Holder | Shares Beneficially Owned | Ownership % | Exercisable Options (≤60 days) | RSUs vesting (≤60 days) | Unvested Equity Excluded |
|---|---|---|---|---|---|
| Paul M. Blanchfield | 88,389 | <1% | 33,879 | 940 | 64,106 RSUs/PSUs/options |
Shares outstanding used for %: 68,480,308 .
- Stock ownership guidelines: 2x base salary for executive officers; 5‑year compliance period; until met, must retain 50% of after‑tax shares from vest/exercise; as of 12/31/2024 each NEO had achieved or was within the compliance window .
- Hedging/pledging: strictly prohibited (no margin accounts, pledging, derivatives, collars, shorting); preclearance and blackout trading windows apply .
- Clawback policy: recoup incentive‑based comp upon a restatement; Committee may recoup additional compensation at its discretion (effective Oct 2, 2023) .
Outstanding Awards (snapshot at 12/31/2024; selected items)
| Award Type | Grant Date | Units | Exercise Price | Expiration |
|---|---|---|---|---|
| Stock Options (unexercisable) | 3/1/2024 | 21,652 | $64.64 | 3/1/2034 |
| RSUs (unvested) | 3/1/2024 | 12,182 | — | — |
| PSUs (unearned, target basis) | 3/1/2024 | 48,730 | — | — |
2024 realized vesting: 46,026 shares vested ($3,066,490 value); no option exercises by Paul in 2024 .
Employment Terms
Severance and Change‑of‑Control
Standard NEO arrangements (other than CEO):
- Non‑CoC termination without cause / resignation for good reason: 1x base salary + prorated target bonus + Company‑paid COBRA up to 12 months, paid over 12 months .
- Double‑trigger CoC (termination within 12 months): 2x base salary + 2x full‑year target bonus + Company‑paid COBRA for 24 months; accelerate all unvested equity (performance awards at target) .
Paul’s modeled payouts (as of 12/31/2024):
| Scenario | Cash Severance ($) | COBRA ($) | Accelerated Equity ($) | Total ($) |
|---|---|---|---|---|
| Termination not in CoC | 1,081,600 | 35,804 | — | 1,117,404 |
| Termination in CoC | 2,163,200 | 71,608 | 7,951,635 | 10,186,443 |
Retirement feature: PSUs continue and are prorated; RSUs are forfeited; options get extended exercise window. As of 12/31/2024, only the CEO and former CEO met retirement qualifications (Paul does not) .
Performance & Track Record
- Corporate drivers in 2024: PYLARIFY net sales ≈$1.058B (+24.3% YoY); DEFINITY ≈$317.8M (+13.6% YoY), contributing to record revenue and strong free cash flow .
- Strategic execution: expanded PET manufacturing network to 62 sites; progressed Alzheimer’s imaging assets (MK‑6240, NAV‑4694) and oncology theranostic pipeline; announced definitive agreements in Jan 2025 to acquire Life Molecular Imaging and Evergreen Theragnostics, subject to customary closing .
- Individual performance (Paul): 105% rating for 2024, reflecting support of CEO transition, leadership coaching, and cross‑functional execution .
- Pay‑for‑performance evidence: Corporate Performance Factor 119.2%; 2022 PSUs vested at 200% on 100th percentile TSR .
Compensation Governance Signals
- Say‑on‑pay support: ~97% approval at 2024 Annual Meeting; Committee continues to use shareholder feedback .
- Independent compensation consultant (Pearl Meyer); updated peer group and stock ownership multiples (CEO 6x; other execs 2x) in 2024 .
- Equity grant timing controls; grants occur post‑Form 10‑K filing window; options at FMV; no timing around material non‑public information .
Risk Indicators & Red Flags
- Hedging/pledging prohibited (alignment positive) .
- Clawback policy aligned to Nasdaq/SEC (risk mitigation) .
- Change‑of‑control economics include full acceleration at target (could be shareholder‑unfriendly if misaligned; balanced by rTSR PSU cap at target if absolute TSR negative for 2025 grants) .
Performance Compensation – Detailed Design
| Metric | Weighting | Target Definition | Payout Curve | Vesting |
|---|---|---|---|---|
| Net Revenue | 40% | Board‑approved budget; threshold 90% of target; max 110% of target | Linear 0–150% | Annual cash payout |
| Bonus EPS | 30% | Adjusted consolidated net income per definition; widened range (85%–115%) in 2024 | Linear 0–150% | Annual cash payout |
| Strategic Objectives | 30% | PSMA PET growth; Cardiology franchise; pipeline/Biomarker Solutions | Committee‑determined (achieved/exceeded → 118%) | Annual cash payout |
| PSUs (rTSR vs S&P 400 Health Care) | — | 25th=50%; 50th=100%; 75th=200% | Linear between points; 2025 grants capped at target if absolute TSR negative | 3‑year cliff |
| RSUs/Options | — | Time‑based | N/A | 3 equal annual tranches |
Equity Ownership & Alignment – Additional Detail
| Policy | Requirement | Status |
|---|---|---|
| Stock Ownership & Retention | CEO 6x salary; Other execs 2x salary; 5 years to comply; 50% after‑tax share retention until met | All NEOs achieved or within compliance window as of 12/31/2024 |
| Insider Trading Controls | Preclearance; blackout periods; no margin, pledging, derivatives, collars, shorts | Strict prohibitions; no exceptions |
| Clawback | Mandatory recovery of incentive comp upon restatement; discretionary broader recovery | Effective Oct 2, 2023 |
Employment Terms – Additional Notes
- Severance conditioned on release and restrictive covenants; modified 280G cut‑back to avoid excise tax unless after‑tax greater than reduced amount .
- No garden leave/non‑compete specifics disclosed for Paul; standard senior executive treatment summarized above .
Investment Implications
- Strong alignment: High equity mix (PSUs tied to rTSR), tightened ownership guidelines (2x salary), and strict hedging/pledging bans reduce misalignment risks .
- Performance sensitivity: 2024 bonuses tied to Net Revenue and Bonus EPS with linear curves; Corporate Performance Factor 119.2% reflects operational outperformance; PSUs historically paid at 200% on 100th percentile TSR (execution track record) .
- Potential selling pressure: Material vesting supply (46,026 shares vested in 2024 for Paul) and continuing RSU/option schedules could create periodic liquidity; trading is constrained by policy preclearance/blackout, reducing opportunistic selling risk .
- Retention risk vs cost: Robust double‑trigger CoC terms (2x salary+bonus and full acceleration at target) plus sizeable unvested equity suggest lower near‑term retention risk but higher potential change‑of‑control costs to shareholders .
- Governance support: ~97% say‑on‑pay backing in 2024 indicates investor acceptance of structure; continued use of Pearl Meyer and peer benchmarking mitigates pay inflation risk .