Harry Kovelman
MYOMOAbout Harry Kovelman
Harry Kovelman, M.D., age 66, has served as Myomo’s Chief Medical Officer since November 2020, bringing 25+ years of medical device and pharma experience in medical affairs, product launches, KOL development, and compliant scientific communication; he holds a Doctor of Medicine (fifth pathway, University of Maryland) and a B.S. in psychology from the University of Maryland . Company performance over his tenure shows marked improvement in total shareholder return (value of an initial fixed $100 investment: $7.47 in 2022, $73.19 in 2023, $94.08 in 2024) alongside narrowing net losses ($-10.7M in 2022, $-8.1M in 2023, $-6.2M in 2024); management attributes value creation largely to revenue growth and CMS reimbursement changes, noting revenue in 2024 is more than double 2022 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Helius Medical Technologies | Senior Vice President, Medical Affairs | Apr 2017–Oct 2020 | Led launches for innovative products, KOL development, scientific platforms, publication planning, and compliant cross-functional communication . |
| Pacira BioSciences, Inc. (formerly Pacira Pharmaceuticals) | Vice President, Medical Affairs | 2014–2017 | Directed medical affairs and scientific communication to HCPs/payers/patients supporting product innovation and education . |
| Convatec Group Plc | Senior executive role | 2010–2014 | Senior leadership in medical affairs; presented at professional conferences and authored rehabilitation papers . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| — | — | — | No public company board or external governance roles disclosed for Dr. Kovelman . |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | 260,716 | 273,738 |
| Other Fixed Compensation ($) – 401(k) match | 13,036 | 12,255 |
Performance Compensation
- Annual bonus design emphasizes pay-for-performance: 70% corporate (equally weighted revenue and operating loss excl. SBC), 30% individual; plus an incremental incentive up to 20% of target bonus tied to financing and operating cash flow targets (max bonus potential 190% of target in 2024) .
| Component | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Revenue (corporate metric) | 35% of target bonus | — | — | — | — |
| Operating loss excl. SBC (corporate metric) | 35% of target bonus | — | — | — | — |
| Individual performance | 30% of target bonus | — | — | — | — |
| Incremental incentive (financing & operating cash flow) | Up to +20% of target | — | — | — | — |
| Total annual bonus (2024) | — | — | — | 224,149 | Portion paid as fully-vested RSUs $20,858 on Mar 11, 2025; remainder cash |
- Equity awards
RSU grants (grant-date values and vesting):
| Year | Grant Date | Shares | Grant Date Fair Value ($) | Vesting Schedule |
|---|---|---|---|---|
| 2023 | 6/28/2023 | 40,000 | 52,342 | RSUs vest in two equal annual installments following grant . |
| 2024 | 6/5/2024 | 53,000 | 184,970 | RSUs vest in three equal annual installments following grant . |
Outstanding unvested RSUs (as of 12/31/2024) and market value:
| Grant Date | Unvested RSUs | Market Value at $6.44 close (12/31/2024) |
|---|---|---|
| 6/28/2023 | 40,000 | 257,600 |
| 6/5/2024 | 53,000 | 341,320 |
Stock options:
| Grant Date | Options Exercisable | Options Unexercisable | Strike ($) | Expiration |
|---|---|---|---|---|
| 11/2/2020 | 5,000 | — | 4.47 | 11/1/2030 |
Note: With a year-end 2024 stock price of $6.44, the 11/2/2020 options are in-the-money relative to the $4.47 strike .
Equity Ownership & Alignment
| Item | Amount |
|---|---|
| Direct/Common Shares Owned | 3,477 |
| Options Exercisable (60-day window) | 5,000 |
| Total Beneficial Ownership (SEC definition) | 8,477 |
| Ownership as % of Shares Outstanding (34,438,009 shares) | <1% (“*”) |
| Unvested RSUs (not counted as beneficial ownership within 60 days) | 93,000 |
| Pledging/Hedging Policy | Company prohibits short sales and, without prior approval, derivatives and pledging; margin borrowing prohibited for executives/directors . |
| Section 16 Compliance | One late Form 4 (Jan 24, 2025) related to vesting of performance-based RSUs on June 9, 2024 . |
Employment Terms
| Provision | Base Case (Termination without Cause or for Good Reason) | Change-in-Control (CIC) Scenario |
|---|---|---|
| Cash Severance | 50% of sum of base salary plus pro rata portion of board-approved annual incentive bonus | 50% of sum of base salary plus pro rata portion of annual incentive bonus if terminated without cause within 12 months post-CIC |
| Equity Acceleration | Equity that would have vested over the next 6 months vests and becomes exercisable/non-forfeitable | All stock options and stock-based awards immediately accelerate and become fully exercisable/non-forfeitable at CIC closing; performance award measurement date accelerated to CIC closing, earned portion fully accelerates |
| COBRA/Health Continuation | Company-paid COBRA equivalent for 6 months (or until COBRA ends, if earlier) | Company-paid COBRA equivalent for 6 months (or until COBRA ends, if earlier) |
| Payment Timing | Paid in substantially equal installments over 6 months, commencing within 60 days post-termination; catch-up if crossing calendar years | Paid over 9 months, commencing within 60 days post-termination; catch-up if crossing calendar years |
| 280G Cutback | Payment reduced to $1 below excise tax threshold if cutback yields higher after-tax amount (no tax gross-up) | Same |
Compensation Structure Analysis
- Cash vs equity: 2024 stock awards rose to $184,970 from $52,342 in 2023, while cash bonus increased to $224,149 from $152,280, and salary moved to $273,738 from $260,716; a portion of the 2024 bonus was paid in fully-vested RSUs ($20,858), increasing equity-linked compensation and alignment .
- Performance metric design: Corporate metrics emphasize revenue growth and operating loss reduction (excl. SBC), with additional incentives for financing and operating cash flow, indicating focus on growth and liquidity—consistent with drivers cited in pay-versus-performance analysis .
- Equity award structures: 2023 RSUs vest over 2 years; 2024 RSUs over 3 years—staggered vesting supports retention but creates periodic supply as tranches vest; options are in-the-money at year-end 2024 levels, potentially adding incremental liquidity if exercised .
Risk Indicators & Red Flags
- Hedging/pledging: Policy prohibits hedging/short sales and pledging without approval; no pledging disclosures for Kovelman—reduces misalignment risk .
- Section 16 timing: One late Form 4 filing (Jan 24, 2025) tied to June 9, 2024 vesting of performance RSUs; administrative rather than economic risk, but worth monitoring for timely reporting practices .
- Related party transactions: None involving Kovelman disclosed; major shareholder financings detailed elsewhere in the proxy are not tied to him .
Investment Implications
- Alignment: Increased equity-linked pay (RSUs and in-the-money options) and bonus design tied to revenue, operating loss, financing, and cash flow signal strong pay-for-performance alignment as Myomo transitions to lump-sum reimbursement under CMS; this supports execution incentives around growth and cash discipline .
- Retention and supply overhang: Multi-year RSU vest schedules (2023 two-year; 2024 three-year) create recurring vesting events through 2025–2027; while supportive of retention, these could add modest selling pressure around vest dates depending on personal liquidity decisions .
- CIC and governance quality: Double-trigger-like economics for severance post-CIC with full equity acceleration at CIC closing and 280G cutback (no gross-up) indicate shareholder-friendly structures that limit parachute inflation while preserving change-in-control flexibility .
- Performance backdrop: TSR and net loss trends improved materially in 2023–2024, with management citing revenue more than doubling versus 2022; sustained execution on reimbursement, commercial rollout, and cash flow could continue to unlock value, with compensation geared to those levers .