David Henry
MYOMOAbout David Henry
David A. Henry, age 63, has served as Myomo’s Chief Financial Officer since February 2019. He is a CPA with an MBA from Santa Clara University and a BS in Business Administration from UC Berkeley; prior roles include CFO positions at AMI Semiconductor, American Semiconductor Corporation, and Eos Energy Storage . Company performance under his tenure shows revenues rising from $3.84M in FY2019 to $32.55M in FY2024, while EBITDA losses narrowed from ~$10.7M in FY2019 to ~$6.0M in FY2024, and the company’s pay-versus-performance disclosure indicates a $100 investment’s value improved to $94.08 at year-end 2024 versus $7.47 at year-end 2022, coincident with CMS reclassification tailwinds .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| AMI Semiconductor (NASDAQ) | Chief Financial Officer | 2004–2007 | CFO of a public semiconductor issuer; capital markets and financial leadership |
| American Semiconductor Corporation (NASDAQ) | Chief Financial Officer | 2007–2017 | Long-tenured CFO; public company operating rigor and scaling |
| Eos Energy Storage LLC (private) | Chief Financial Officer | 2017–2019 | Growth-stage energy storage; private-company finance and operations |
External Roles
No external public-company directorships or committee roles disclosed for Henry.
Fixed Compensation
| Metric | FY2023 | FY2024 |
|---|---|---|
| Base Salary ($) | $251,424 | $263,600 |
| Target Bonus (% of Base) | 55% (per Henry Agreement) | 55% (per Henry Agreement) |
| Actual Annual Bonus Paid ($) | $134,420 (cash) | $259,016 cash; $24,102 paid in fully-vested RSUs on Mar 11, 2025 |
| Stock Awards Granted ($) | $77,342 (time-based RSUs) | $244,300 (time-based RSUs) |
| Other Compensation ($) | $15,712 (401k match) | $17,250 (401k match) |
Notes:
- Annual grant timing generally in June; committee did not time grants around MNPI in 2024 .
- 401(k) plan: 100% match of employee contribution up to 5% of base salary .
Performance Compensation
Annual incentive design emphasizes pay-for-performance with clear corporate and individual metrics:
| Metric | Weighting | Target | Actual | Payout Mechanics | Vesting/Timing |
|---|---|---|---|---|---|
| Revenue (Company) | 35% of Corporate Bonus (half of 70%) | Company-set (undisclosed) | Achieved to support 2024 bonus outcome | 0–200% payout range on Corporate Bonus based on results | Annual bonus for 2024 paid Mar 2025; portion in fully-vested RSUs [$24,102] |
| Operating Loss ex-SBC (Company) | 35% of Corporate Bonus (half of 70%) | Company-set (undisclosed) | Achieved to support 2024 bonus outcome | 0–200% payout range on Corporate Bonus based on results | Annual bonus settlement Mar 2025 |
| Financing and Operating Cash Flow | Up to +20% incremental (2024 only) | Company-set (undisclosed) | Contributed to payout potential | Increases maximum bonus to 190% of target for 2024 | Paid with annual bonus |
| Individual Performance (Henry) | 30% of total | Qualitative | Committee-assessed | Within overall cap | Annual cycle |
| 2023 Structure | 70% Rev/Op Loss; 30% Individual; Max 170% of target | — | — | — | — |
Equity Ownership & Alignment
| As of Date | Common Shares Owned | Options Exercisable (≤60 days) | Unvested RSUs (excluded from beneficial) | Total Beneficial Shares | Ownership % |
|---|---|---|---|---|---|
| Mar 31, 2024 | 190,336 | 1,666 (exercisable; $40.20 strike, exp. 2/19/2029) | 164,083 (unvested RSUs; not included) | 195,502 | <1% |
| Mar 31, 2025 | 248,462 | 1,666 (exercisable; $40.20 strike, exp. 2/19/2029) | 135,000 (unvested RSUs; not included) | 250,128 | <1% |
Additional alignment details:
- Insider trading policy prohibits pledging or borrowing against Company securities without prior approval; short sales and hedging/derivatives are prohibited .
- Section 16(a) compliance: one late Form 4 filing for Henry (and others) on Jan 24, 2025 relating to vesting of performance-based RSUs on June 9, 2024 .
Equity Awards and Vesting
Outstanding equity awards at year-end:
2024 (as of Dec 31, 2024):
| Award | Grant Date | Quantity | Vesting | Market Value at 12/31/24 |
|---|---|---|---|---|
| Stock Options (Exercisable) | 2/19/2019 | 1,666 | Exercisable; $40.20 strike; exp. 2/19/2029 | — |
| RSUs | 6/28/2023 | 65,000 | Vest over 2 years; equal annual installments | $418,600 (6.44×65,000) |
| RSUs | 6/5/2024 | 70,000 | Vest over 3 years; equal annual installments | $450,800 (6.44×70,000) |
2023 (as of Dec 31, 2023):
| Award | Grant Date | Quantity | Vesting | Market Value at 12/29/23 |
|---|---|---|---|---|
| Stock Options (Exercisable) | 2/19/2019 | 1,666 | Exercisable; $40.20 strike; exp. 2/19/2029 | — |
| RSUs | 6/28/2023 | 130,000 | Vest over 2 years; equal annual installments | $651,300 (5.01×130,000) |
| RSUs | 3/8/2023 | 17,000 | Vest in full on 3/8/2024 | $85,170 |
| RSUs | 6/8/2022 | 20,750 | Vest over 2 years; equal annual installments | $103,957 |
| Performance-Based RSUs (TSR vs Peer) | 6/9/2021 | Target 10,000 (Henry shows 3,333 for time-based and 10,000 perf in table; company-wide PEO shows format) | TSR measurement period 6/9/2021–3/9/2024; earned RSUs vest 6/9/2024; vesting thresholds: 25th–75th percentile | $5,114 (time-based tranche) |
Notes:
- 2024 bonus: portion paid as fully-vested RSUs on March 11, 2025 ($24,102 grant-date fair value) .
- Committee generally grants in June; no MNPI timing in 2024 .
Employment Terms
| Term | Key Provisions |
|---|---|
| Agreement & Term | Employment agreement dated Apr 22, 2021; amended Feb 21, 2024. Term two years from amendment with automatic one-year renewal; at-will employment . |
| Base Salary & Target Bonus | Base salary $260,000; target annual incentive 55% of base . |
| Severance (No CIC) | If terminated without cause: cash severance equal to 75% of (base salary + approved annual incentive bonus for the year); vesting acceleration for awards that would vest in next 6 months; 9 months COBRA contribution; paid over 6 months starting within 60 days (with catch-up if straddling years) . |
| Change-in-Control (Single Trigger Equity) | If a CIC occurs while serving as CFO: immediate acceleration of all time-based stock options and stock awards; performance-based award measurement date accelerates to CIC close; earned portion immediately accelerates . |
| Severance (Double Trigger CIC) | If terminated without cause within 12 months post-CIC: cash severance equal to 100% of (base salary + approved annual incentive bonus for the year); 12 months COBRA contribution; paid commencing within 60 days (with catch-up if straddling years). Equity acceleration provisions apply as above . |
| Protected Activities & Arbitration | Whistleblower and protected activity carve-outs; arbitration in Boston, MA; jury trial waiver; Massachusetts law governs . |
Performance & Track Record
Company fundamentals and shareholder outcomes during Henry’s tenure:
| Metric | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 |
|---|---|---|---|---|---|---|
| Revenues ($) | $3,837,730 | $7,583,371 | $13,856,374 | $15,555,229 | $19,241,158 | $32,551,199 |
| EBITDA ($) | -$10,699,879* | -$10,397,304* | -$10,122,070* | -$10,479,405* | -$8,067,243* | -$6,000,788* |
| Pay-Versus-Performance: Value of Initial Fixed $100 Investment (TSR) | — | — | $101.71 | $7.47 | $73.19 | $94.08 |
| Net Income (Loss, $M) | — | — | ($10.4) | ($10.7) | ($8.1) | ($6.2) |
Values retrieved from S&P Global for EBITDA (*).
Context:
- Management cites CMS’s reclassification of Myomo products (brace benefit with lump-sum reimbursement) as a key driver of stock price appreciation in late 2023 and into 2024, supporting stronger pay-versus-performance outcomes .
Compensation Structure Analysis
- Increased equity weighting via RSUs: Henry’s 2023 and 2024 grants were exclusively RSUs; no new option grants since a legacy 2019 option, indicating a shift away from options toward RSUs, which reduce hurdle risk for executives but still align with time-based retention .
- Bonus leverage expanded: 2024 design added up to 20% incremental bonus tied to financing and operating cash flow, lifting max payout to 190% of target (vs. 170% in 2023), increasing sensitivity to capital and liquidity milestones .
- Performance metrics tied to value drivers: 70% of bonus tied to revenue and operating loss (ex-SBC) creates directional alignment to growth and cash discipline, with 30% qualitative assessment .
Risk Indicators & Red Flags
- Late Section 16 filings: One late Form 4 for Henry (and other executives) regarding June 9, 2024 performance RSU vesting, filed January 24, 2025 .
- Hedging/pledging controls: Insider trading policy prohibits short sales, derivatives, margin pledging, and pledging without prior approval, mitigating misalignment risks .
Employment Terms (Restrictive Covenants & Other)
- Good Reason and Cause definitions detailed; arbitration/jurisdiction clauses present, providing structured dispute resolution .
Investment Implications
- Alignment: Henry’s incentives emphasize revenue growth and operating loss reduction, while sizeable time-based RSUs and single-trigger equity acceleration on CIC create strong retention but also potential near-term supply overhang on vest dates (65k remaining from 2023 grant; 70k from 2024 grant) .
- Retention risk: Double-trigger CIC severance (100% of base+bonus plus 12 months COBRA) and immediate equity acceleration on CIC reduce departure risk in strategic transactions but raise transaction-linked payout sensitivity .
- Trading signals: Upcoming RSU vesting tranches (two-year and three-year schedules) and the history of a late Form 4 suggest monitoring quarterly vest events for potential selling pressure; pledging/hedging prohibitions reduce leverage-related forced sales risk .
- Execution track record: Revenues expanded materially and EBITDA losses narrowed during Henry’s tenure, with pay-versus-performance disclosures showing marked TSR improvement since 2023, aided by CMS reimbursement changes; maintaining growth and improving cash flow will be key to sustaining incentive payouts and equity value .