Lauren Sabella
MANNKINDAbout Lauren Sabella
Lauren M. Sabella is Executive Vice President, Operations at MannKind (appointed January 2025) after serving as Chief Operating Officer since March 2023; she notified the company of her intention to retire effective July 18, 2025. She is 64 and holds a B.B.A. from Hofstra University, with deep commercial leadership experience across inhaled therapies and product launches (e.g., Spiriva, Mobic) . MNKD’s pay program ties a majority of executive compensation to performance: 2024 STI funded at 125% on corporate objectives, and long‑term PSUs vest on relative TSR with the 2021 cycle paying out at 198% in May 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Acorda Therapeutics | EVP, Commercial Development; Chief Commercial Officer; Chief Operating Officer | 2010–2015; 2015–2021; 2021–2022 | Led commercialization and pipeline execution across inhaled formulations and neurological indications |
| Altus Pharmaceuticals | Corporate Officer & VP, Commercial Development | 2006–2008 | Built commercialization capabilities across specialty indications |
| Boehringer Ingelheim | Various commercial/marketing roles; VP Sales, Eastern Zone | ~18 years (prior to 2006) | Led major launches including Mobic and Spiriva; managed Primary Care/Specialty divisions |
| Tugboat Consulting Group | Founder & Principal | Prior to 2010 | Advised on commercialization processes for emerging biopharma |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| LS Consulting Group | Principal | Sep 2022–Mar 2023 | Strategic advisory to pharma/biotech clients on commercialization and operations |
Fixed Compensation
| Year | Base Salary ($) | Target Bonus (%) | Actual STI Paid ($) |
|---|---|---|---|
| 2024 | 449,646 | 50% of base for EVPs | 281,029 |
| 2023 | 321,539 | 50% of base for EVPs | 231,508 |
Performance Compensation
| Component | Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| Short‑Term Incentive (2024) | Deliver on Tyvaso DPI production | 30% | 100% | 57.5% | Aggregate STI funded 125% | Paid Apr 2025 (Lauren: $281,029) |
| Short‑Term Incentive (2024) | Drive endocrinology business | 30% | 100% | 35.0% | Aggregate STI funded 125% | Paid Apr 2025 |
| Short‑Term Incentive (2024) | Advance pipeline opportunities | 30% | 100% | 21.5% | Aggregate STI funded 125% | Paid Apr 2025 |
| Short‑Term Incentive (2024) | Finance/Quality | 10% | Qualitative | 11.0% | Aggregate STI funded 125% | Paid Apr 2025 |
| Long‑Term Incentive (2024 PSUs) | Relative TSR vs Russell 3000 Pharma & Biotech | ~55% of LTI | 50th pctile = 100% | TBD (Jul 2027 cliff) | 0–300% scale (25th=50%; 75th=200%; ≥90th=300%) | Cliff vest Jul 15, 2027 (158,000 target) |
| Long‑Term Incentive (2024 RSUs) | Time‑based RSUs | ~45% of LTI | N/A | N/A | N/A | 25% annually Jul 2025–Jul 2028 (129,000) |
| Long‑Term Incentive (2021 PSU cycle) | Relative TSR | N/A | N/A | 198% of target | 198% payout delivered in May 2024 | Vested May 2024 on 2021 grant conditions |
Equity Ownership & Alignment
- Executive stock ownership policy: EVPs must hold shares equal to 2× base salary; all executives currently in compliance .
- Hedging/pledging prohibited: no short selling, options, margin purchases, or pledging of MNKD stock allowed .
- Clawback: Dodd‑Frank compliant recovery of incentive compensation upon any material financial restatement .
Beneficial ownership (shares):
| As‑of Date | Shares Owned | % of Outstanding |
|---|---|---|
| Mar 20, 2025 | 122,819 | <1% (*) |
| Mar 21, 2024 | 82,685 | <1% (*) |
Outstanding awards (Dec 31, 2024):
| Award Type | Unvested Units (#) | Market/Payout Value ($) |
|---|---|---|
| RSUs (2019–2023 cycles) | 157,500 | 1,012,725 |
| PSUs (2022 cycle, vest 2026) | 28,000 | 180,040 |
| RSUs (2023 cycle) | 17,437 | 112,120 |
| PSUs (2024 cycle, vest 2027) | 158,000 | 1,015,940 |
| RSUs (2024 cycle) | 129,000 | 829,470 |
2024 vesting/realization:
| Event | Shares | Value Realized ($) |
|---|---|---|
| RSUs vested during 2024 | 58,313 | 276,965 |
| Options exercised (2024) | — | — |
Employment Terms
| Provision | Terms |
|---|---|
| Role/Start | COO since Mar 2023; EVP, Operations effective Jan 2025; retirement effective Jul 18, 2025 |
| Severance (non‑CoC) | MNKD states severance agreements only with General Counsel; others (including Sabella) not disclosed for non‑CoC |
| Change‑of‑Control (Double‑Trigger) | Upon termination without cause or resignation for good reason following a change of control: salary/STI continuation, COBRA reimbursement, accelerated equity |
| Estimated CoC Economics (Dec 31, 2024) | Salary/STI continuation $1,398,752; health/welfare $37,150; accelerated unvested equity $4,708,798; total $6,144,700 |
| Clawback | Incentive recoupment for material restatements; includes TSR‑based awards |
| Hedging/Pledging | Prohibited under Insider Trading Policy |
| Stock Ownership Guidelines | EVP: 2× base salary; all execs in compliance |
Investment Implications
- Alignment: Sabella’s pay mix emphasizes at‑risk equity tied to TSR and time‑based RSUs, with rigorous clawbacks and prohibitions on hedging/pledging—favorable for shareholder alignment .
- Retention/transition: Planned retirement on July 18, 2025 introduces execution continuity risk across Operations; succession has already narrowed scope with EVP Operations appointment in January 2025, removing Endocrine BU oversight .
- Performance signal: 2024 STI funding at 125% reflects strong operational delivery (Tyvaso DPI production, endocrinology metrics), while TSR‑based LTI paid 198% on the 2021 cycle—positive indicators of performance realization .
- Ownership/selling pressure: Beneficial ownership remains <1%; she realized RSU vesting in 2024 and has clear future vesting schedules (including 2027 PSUs). Pledging/hedging bans reduce forced‑sale risk; monitor any Form 4 activity near retirement .