Stephen Eck
MACROGENICSAbout Stephen Eck
Stephen L. Eck, M.D., Ph.D., is Senior Vice President, Clinical Development and Chief Medical Officer at MacroGenics; he joined in July 2020 and is a board-certified hematologist with extensive oncology drug development experience across Pfizer, Eli Lilly, Astellas, Immatics, and as prior CEO of Aravive; he holds a B.A. in Chemistry (Kalamazoo), an M.S./Ph.D. in Chemistry (Harvard), and an M.D. (University of Mississippi), with residency/fellowship at University of Michigan and was the Ann B. Young Assistant Professor of Cancer Research at the University of Pennsylvania; he is a Fellow of the AAAS . MacroGenics’ FY2024 total revenue rose 156% year over year to $149.962 million, while net loss was $66.966 million . Pay-versus-performance disclosure shows the company’s TSR value of an initial $100 investment fell to $14.22 in 2024 from $42.08 in 2023; net loss was $66,966 thousand in 2024 vs $9,058 thousand in 2023 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Immatics (public) | Chief Medical Officer | Not disclosed | Led clinical development at an immunotherapy company |
| Aravive | Chief Executive Officer (prior) | Not disclosed | CEO leadership in oncology biotech |
| Luminex Corporation (public) | Director (prior) | Not disclosed | Board oversight at diagnostics company |
| Astellas Pharma, Inc. | VP, Oncology Medical Sciences | Not disclosed | Oversight of oncology drug development plans |
| Eli Lilly and Company | VP, Translational Medicine & Pharmacogenomics | Not disclosed | Led Clinical Pharmacology, Diagnostic & Experimental Medicine, Laboratory for Experimental Medicine |
| Pfizer | VP, Translational Medicine | Not disclosed | Translational medicine leadership |
| University of Pennsylvania | Ann B. Young Assistant Professor of Cancer Research | Not disclosed | Academic cancer research appointment |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Circulogene Theranostics (private) | Director | Not disclosed | Oversight in precision diagnostics |
| 1cBio (private) | Director | Not disclosed | Board role at biotech |
| Personalized Medicine Coalition | Board Member | Not disclosed | Non-profit education/advocacy in personalized medicine |
| Central Pennsylvania Clinic | Board Member | Not disclosed | Nonprofit healthcare clinic governance |
| Keck Graduate Institute | Former Trustee | Not disclosed | Academic institution governance |
| Fellow, AAAS | Fellow | Not disclosed | Professional recognition |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | 521,808 | 542,769 |
| Target Bonus % | 40% | 40% |
| Target Bonus ($) | 208,723 (40% of 2023 base; not separately disclosed) | 218,400 |
| All Other Compensation ($) | 13,200 | 13,800 |
Performance Compensation
| Metric | Weighting | Target | Actual Achievement | Payout | Vesting |
|---|---|---|---|---|---|
| Annual Cash Incentive (2024) | Weighted company + individual; committee discretion | $218,400 (40% of base) | 82% | $178,739 | Cash; paid Q1 2025 |
| Equity Awards (time-vested) | N/A | 33,500 RSUs; 90,000 options (2024 grants) | N/A | Grant-date fair values included in SCT: Stock $613,050; Options $1,297,251 (2024) | Options: 12.5% at 6 months, remainder quarterly over 14 quarters; RSUs: equal annual installments over 3 years |
Equity Ownership & Alignment
| Ownership Item | Value |
|---|---|
| Shares owned (common) | 29,377 |
| Shares issuable within 60 days (options exercisable/RSUs vesting) | 522,500 |
| Total beneficial ownership | 551,877 |
| Ownership % of outstanding | Less than 1% (out of 63,090,323 shares outstanding) |
| Stock ownership guidelines | Section 16 officers required to hold stock equal to 1x base salary within 5 years; CEO 3x; directors 3x annual retainer |
| Hedging/pledging | Prohibited for directors, officers, employees |
| Clawback policy | Adopted Nov 2023 to comply with SEC Rule 10D-1/Nasdaq; recoup erroneous incentive comp within 3-year lookback upon restatement, regardless of misconduct |
| Repricing prohibition | 2023 Equity Plan prohibits option/SAR repricing without shareholder approval |
Outstanding Equity Awards at FY2024 Year-End (Stephen Eck)
| Grant Date | Options Exercisable (#) | Options Unexercisable (#) | Exercise Price ($) | Expiration | Unvested RSUs (#) | Market Value of Unvested RSUs ($) |
|---|---|---|---|---|---|---|
| 7/1/2020 | 200,000 | — | 28.87 | 7/1/2030 | — | — |
| 2/22/2021 | 56,250 | 3,750 | 19.18 | 2/22/2031 | — | — |
| 2/22/2022 | 103,125 | 46,875 | 10.15 | 2/22/2032 | — | — |
| 2/15/2023 | 87,500 | 112,500 | 4.82 | 2/15/2033 | 33,330 | 108,323 |
| 2/8/2024 | 16,875 | 73,125 | 18.30 | 2/8/2034 | 33,500 | 108,875 |
Employment Terms
- Employment agreement entered July 2020; amended January 1, 2025 .
- Non-compete and non-solicit: 12 months post-termination; confidentiality and invention assignment obligations apply .
- Severance (requires irrevocable release; compliance with covenants):
- Without change in control: 12 months base salary; 12 months health benefits (or until new employment provides similar benefits, if earlier); no acceleration of unvested equity .
- Termination within one year following change in control (double trigger): 12 months base salary plus target bonus; 12 months health benefits; 100% acceleration of unvested equity awards .
Potential Payments (as of 12/31/2024)
| Scenario | Cash Payment ($) | Health Benefit Continuation ($) | Acceleration of Unvested Equity ($) | Total ($) |
|---|---|---|---|---|
| Absent a change in control | 546,000 | 26,627 | — | 572,627 |
| In connection with a change in control | 764,400 | 26,627 | 217,198 | 1,008,225 |
Compensation & Incentives
Multi-Year Compensation (Summary Compensation Table)
| Component ($) | 2023 | 2024 |
|---|---|---|
| Salary | 521,808 | 542,769 |
| Stock Awards (grant-date fair value) | 241,000 | 613,050 |
| Option Awards (grant-date fair value) | 742,820 | 1,297,251 |
| Non-Equity Incentive (Annual Bonus) | 231,840 | 178,739 |
| All Other Compensation | 13,200 | 13,800 |
| Total | 1,750,668 | 2,645,609 |
2024 Equity Grants
| Award Type | Number Granted |
|---|---|
| RSUs | 33,500 |
| Stock Options | 90,000 |
Program Design & Metrics
- Annual bonus targets and outcomes (2024): Target 40% of base; achievement 82%; payout $178,739 .
- Equity program: mix of time-vested options and RSUs; options vest 12.5% at 6 months then quarterly over 14 quarters; RSUs vest annually in equal thirds over 3 years; exercise price set at close price on grant date .
Compensation Peer Group (2024 cycle)
| Peer Companies |
|---|
| 2seventy bio; Agenus, Inc.; Atara Biotherapeutics; Deciphera Pharmaceuticals; G1 Therapeutics; Gritstone Bio; Inovio Pharmaceuticals; Karyopharm Therapeutics; Mersana Therapeutics; Merus N.V.; NGM Biopharmaceuticals; Precigen; REGENXBIO; Rigel Pharmaceuticals; Scholar Rock; Xencor, Inc.; Y-mAbs Therapeutics; Zymeworks |
- Committee uses market data, internal equity, and performance; no fixed percentile targets; independent consultants (Compensia; Alpine Rewards) engaged in 2024–2025 .
Say-On-Pay & Shareholder Feedback
- Advisory approval of NEO compensation: 2023: 88.9%; 2024: 95.7% .
- 2025 Annual Meeting (May 21, 2025) advisory vote on NEO pay: For 42,433,276; Against 1,382,356; Abstain 17,656; Broker non-votes 8,171,555 .
- 2025 approval of amendment adding 1,250,000 shares to 2023 Equity Incentive Plan: For 26,266,489; Against 17,556,578; Abstain 10,221; Broker non-votes 8,171,555 .
Compensation Structure Analysis
- Shift toward equity: Eck’s stock awards rose from $241,000 (2023) to $613,050 (2024) and option awards from $742,820 to $1,297,251, indicating increased equity weighting aligned with 2023 performance and market factors .
- Time-vested awards dominate (no disclosed PSUs), lowering direct performance linkage vs market-based equity, though options link to share price appreciation and RSUs retainment value .
- Clawback, anti-hedging/pledging and no-repricing provisions mitigate shareholder risk and discourage misalignment .
Risk Indicators & Red Flags
- Hedging/pledging: Prohibited, reducing alignment risk from collateral pledges .
- Clawback: SEC-compliant recoupment policy in place .
- Equity plan governance: No single-trigger acceleration under the plan; repricing prohibited without shareholder approval .
Equity Ownership & Alignment Implications
- Beneficial ownership <1% with substantial options exercisable within 60 days (522,500), implying meaningful exposure to share price outcomes; RSU vesting creates predictable annual settlement that may introduce periodic selling needs for tax/liquidity .
- Stock ownership guidelines require 1x salary for Section 16 officers within five years; individual compliance status not disclosed .
Employment Terms Implications
- Severance absent CoC: 12 months base ($546,000) and benefits ($26,627), no acceleration; reduces immediate turnover costs but limits windfalls .
- Double-trigger CoC: 12 months base plus target bonus ($764,400) and full acceleration ($217,198), which could accelerate selling pressure upon a transaction and raises retention costs around M&A .
Investment Implications
- Pay-for-performance linkage leans on time-vested equity and an annual bonus tied to combined company/individual outcomes; absence of PSUs reduces direct linkage to TSR or financial KPIs, though options embed market alignment .
- Ownership and policy safeguards (anti-pledging, clawback, no repricing, stock ownership guidelines) are supportive of alignment; however, sizable time-based grants and full acceleration under CoC could drive event-driven supply overhang .
- Macro backdrop: Revenues surged 156% YoY in 2024 but TSR deteriorated and net loss widened; this divergence suggests equity value sensitivity to pipeline, milestones, and partner dynamics—bonus outcomes reflected controlled achievement (82%) rather than outsized payouts .