Craig Granowitz
LEXICON PHARMACEUTICALSAbout Craig Granowitz
Craig B. Granowitz, M.D., Ph.D., is Senior Vice President and Chief Medical Officer at Lexicon Pharmaceuticals (LXRX), appointed via offer letter in July 2021; his current base salary is disclosed and his bonus target is set by the Compensation Committee. Company-level pay-versus-performance disclosures show challenging TSR and losses: the value of an initial fixed $100 investment declined from $48 (2022) to $39 (2023) and $19 (2024), while net income was negative in each year, contextualizing incentive outcomes and equity award realizations .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Lexicon Pharmaceuticals | SVP & Chief Medical Officer | Since Jul 2021–present | Led medical support for INPEFA heart failure launch and development programs; committee noted contributions to clinical progress and medical support across programs in 2022–2024 |
External Roles
- Not disclosed in proxy filings.
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $467,459 | $487,628 | $501,686 |
| Target Bonus % of Salary | 40% | 40% | 40% |
| Actual Bonus Paid ($) | $189,520 | $149,650 | $199,373 |
| All Other Compensation ($) | $14,162 | $15,205 | $16,019 |
| Total Compensation ($) | $1,571,022 | $1,534,823 | $1,588,383 |
Performance Compensation
Annual Equity Awards Granted
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Stock Awards ($) | $268,000 | $260,909 | $478,762 |
| Option Awards ($) | $631,881 | $621,431 | $392,543 |
| RSUs Granted (Count) | — | 107,370 | 222,680 |
| Options Granted (Count) | — | 322,110 | 222,680 |
| Option Exercise Price ($/sh) | — | $2.43 | $2.15 |
Vesting schedules
- RSUs: Each grant vests one third on February 28 of the three years following grant (e.g., 2024 grant vests on Feb 28, 2025/2026/2027) .
- Options: 25% at the first anniversary of grant, then 1/48 monthly; options fully vest upon a change in control .
Annual Corporate Objectives Used in Bonus Determinations
| Year | Corporate Objectives | Committee Assessment |
|---|---|---|
| 2022 | INPEFA NDA acceptance; INPEFA launch prep; LX9211 Phase 2 positive results; other R&D; financial resource management | Achieved |
| 2023 | INPEFA U.S. approval; launch/commercial performance progress; LX9211 advancement; other R&D; cash and investments objectives | Significantly achieved |
| 2024 | INPEFA launch/commercial performance; ZYNQUISTA regulatory objective (not achieved); LX9211 advancement; sotagliflozin in HCM; Viatris ex-U.S. license; year-end cash objectives | Significantly achieved; INPEFA and ZYNQUISTA objectives not achieved |
Equity Realizations (vesting)
| Metric | 2023 | 2024 |
|---|---|---|
| Shares Acquired on RSU Vesting (Count) | 27,917 | 63,706 |
| Value Realized on RSU Vesting ($) | $60,580 | $166,910 |
Equity Ownership & Alignment
| Metric (as of record date) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Beneficial Ownership (Shares) | — | 47,626 | 120,252 |
| Options Exer./RSUs Vesting within 60 days (Shares) | 205,373 | 413,877 | 694,512 |
| Ownership % of O/S | <1% | <1% | <1% |
- Outstanding equity detail (12/31/2024): Options and RSUs outstanding include strikes above year-end market price ($0.7385), implying options were out-of-the-money at year end; RSUs not vested at 27,917, 71,580, and 222,680 units (market values $20,617, $52,862, and $164,449 respectively) .
- Hedging/derivatives: Company insider trading policy prohibits hedging and trading options on company stock; pledging was not disclosed .
Option Inventory (as of 12/31/2024)
| Strike ($) | Expiration | Exercisable (Shares) | Unexercisable (Shares) |
|---|---|---|---|
| 3.54 | 8/2/2031 | 208,336 | 41,664 |
| 3.20 | 2/10/2032 | 177,974 | 73,276 |
| 2.43 | 2/9/2033 | 147,638 | 174,472 |
| 2.15 | 2/8/2034 | — | 222,680 |
Employment Terms
-
Offer letter and current terms: Base salary currently $529,104; bonus target 40% of base; offer letter provides salary continuation (6 months; 12 months if terminated without cause in connection with change in control) .
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Management Severance Plan (adopted Mar 2025; supersedes prior severance): If terminated without cause or resigns for good reason:
- Cash severance: 12 months base salary (18 months for CEO); plus current target bonus if termination within 24 months following change in control; COBRA premiums for 12 months (18 months for CEO) .
-
Equity acceleration:
- Options: fully vest on change in control (single trigger) .
- RSUs: become fully vested upon termination without cause or for good reason within 24 months following change in control (double trigger), or upon death/disability .
-
Illustrative amounts as of 12/31/2024: Salary continuation for Dr. Granowitz on CIC termination was $511,212; accelerated RSU value $237,928 (based on $0.7385/share) .
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Clawback policy: Adopted Oct 2023, recouping incentive-based compensation after accounting restatements for the prior three years .
-
Non-compete, garden leave, consulting: Not disclosed for Dr. Granowitz; no tax gross-ups disclosed .
Compensation Peer Group & Say-on-Pay
- Target compensation philosophy: LXRX generally targets total cash and total direct compensation around the median of a biopharma peer set, considering performance and conditions .
- Peer group examples:
- 2025 decisions: Altimmune, AnaptysBio, Prothena, Syndax, Avadel, Liquidia, Eyepoint, Pliant, UroGen, Stoke, ARS Pharma, Immunome, Praxis, CorMedix, Cartesian, Taysha, Entrada, Dianthus, Arbutus .
- Say-on-pay approval history:
Year Approval % 2020 >98% 2023 >81% 2024 >97%
Investment Implications
- Alignment and retention: Bonus target (40%) is moderate; RSUs with double-trigger vesting provide retention around change-in-control; options are out-of-the-money at year-end, limiting near-term exercise/sales pressure .
- Calendar-driven selling pressure: RSUs vest annually on Feb 28; Dr. Granowitz realized $166,910 on 63,706 shares vesting in 2024, indicating recurring tax-related dispositions may occur around vesting dates; monitor 10b5‑1 plans and Form 4s near late February .
- Governance risk low: Strong say-on-pay support (>97% in 2024) and a compliant clawback and anti-hedging policy reduce governance overhang; no option repricing without shareholder approval is permitted under plans .
- Change-of-control economics: Options accelerate on single trigger; RSUs on double trigger; cash severance (12 months base + target bonus on CIC) is standard for mid-cap biotech, mitigating abrupt departures but watch potential turnover incentives if strategic alternatives arise .