David C. Francisco
Organogenesis HoldingsAbout David C. Francisco
David C. Francisco, 59, is Organogenesis’ Chief Financial Officer (since 2021). He spent ~20 years at PerkinElmer, Inc., serving as Vice President & Treasurer (2017–2021), interim CFO of the Discovery & Analytical Sciences segment (2017), Financial Planning & Analysis leader, and CFO of the Human Health business (2014–2016). He holds an MBA in Finance from Bentley College and a BS in Industrial Engineering & Operations Research from UMass Amherst . Company performance tied to incentive pay in 2024 included net revenue of $482.0 million, gross margin of 76.1%, and Adjusted EBITDA (ex-clinical) of $64.1 million; Organogenesis’ TSR (value of $100 initial investment) was $66.53 in 2024 vs $85.03 in 2023, while net revenue grew ~11.3% YoY (from $433.1 million to $482.0 million) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Organogenesis Holdings Inc. | Chief Financial Officer | 2021–Present | Led finance; remediation of material weakness contributed to discretionary bonus recognition in 2024 . |
| PerkinElmer, Inc. | Vice President & Treasurer | 2017–2021 | Corporate treasury leadership; capital markets and liquidity oversight. |
| PerkinElmer, Inc. | Interim CFO, Discovery & Analytical Sciences segment | 2017 | Segment finance leadership during transition. |
| PerkinElmer, Inc. | FP&A Leader; CFO, Human Health business | 2014–2016 | Business-unit P&L stewardship and planning. |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| PerkinElmer, Inc. | Senior finance roles (Treasurer, Segment CFO, FP&A) | 2014–2021 | Strengthened financial operations and capital structure discipline. |
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Salary ($) | 405,502 | 419,930 | 469,268 |
| Target Bonus % of Salary | — | — | 60% |
| Target Annual Cash Bonus ($) | — | — | 286,436 |
| Actual Bonus Paid ($) | 24,300 (discretionary) | 160,902 (discretionary) | 422,016 (389,553 performance at 136% + 32,463 discretionary) |
| As-of 4/1/2025 Base Salary ($) | — | — | 515,586 |
| As-of 4/1/2025 Target Bonus % | — | — | 60% of base |
Performance Compensation
| Metric | Weighting | Target | Actual | Payout Attainment | Vesting/Notes |
|---|---|---|---|---|---|
| Net Revenue | 45% | $470.0M | $482.0M | 130% | Cash bonus annual; 2024 tied to corporate metrics . |
| Gross Margin % | 10% | 77.0% | 76.1% | 77% | Cash bonus annual; weighted at 10% . |
| Adjusted EBITDA (ex-clinical) | 45% | $53.0M | $64.1M | 155% | Cash bonus annual; weighted at 45% . |
| Company Overall Attainment | — | — | — | 136% | Applied to NEO targets . |
| Francisco 2024 Target Bonus ($) | — | 286,436 | — | — | Paid $389,553 performance + $32,463 discretionary = $422,016 . |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership (as of 4/11/2025) | 142,335 shares owned; rights to acquire 415,387; total 557,722; <1% of outstanding . |
| 2024 RSUs Granted | 160,350 units; vest in equal annual installments over 4 years starting 2/15/2024 . |
| 2024 Options Granted | 289,915 options @ $3.43; 10-year term; vest in equal annual installments over 4 years starting 2/15/2024 . |
| Unvested RSUs @ 12/31/2024 | 365,146 units; market value $1,168,467 (at $3.20) . |
| Options Exercised in 2024 | None . |
| RSUs Vested in 2024 | 73,455 shares; value realized $269,766 . |
| Hedging/Margin/Shorts | Prohibited (short sales, hedging, publicly traded options, margin) . |
| Pledging | No pledging disclosure; insider policy addresses margin/hedging; no pledging noted in ownership tables . |
| Clawback | Dodd-Frank/Rule 10D-1 policy adopted effective 10/2/2023 (recovery of erroneously awarded incentive comp) . |
Employment Terms
| Term | Francisco |
|---|---|
| Employment agreement | At-will letter dated 1/13/2021 . |
| Current base & target bonus | Base $515,586 as of 4/1/2025; target bonus 60% of base . |
| Severance (no change-in-control) | No cash severance; only accrued items (e.g., vacation); benefits per table total $47,292 at 12/31/2024 scenario . |
| Change-in-control protection | Double-trigger: if terminated without Cause or constructively terminated within 24 months of a Change in Control → lump sum 1× salary + 1× target bonus, up to 12 months COBRA differential, and full acceleration of time-based equity; subject to noncompete and release . |
| CIC economics (illustrative, as of 12/31/2024) | Salary $477,394; Bonus $286,436; Benefits $23,472; Other $47,292; Accelerated equity (intrinsic value) $1,317,451; Total $2,152,045 . |
| Trading policy | Preclearance required; blackout windows apply . |
Compensation Structure Analysis
- Shift to formulaic, performance-based bonuses in 2024 with explicit threshold/target/maximum for revenue, gross margin, and Adjusted EBITDA; discretionary bonuses remain possible but limited (Francisco received $32,463 for material weakness remediation) .
- 2024 equity mix: 50% RSUs and 50% options by value with four-year vesting; in 2025, PSU layer added (20% of value) vesting over three years on net revenue thresholds, increasing pay-for-performance leverage .
- Perquisites include leased automobile and tax gross-ups (e.g., 2024: $17,911 car cost, $7,441 gross-up, plus insurance premiums and 401(k) match), a modest shareholder-unfriendly feature to monitor .
- Option repricing prohibited without shareholder approval; clawback policy in place per Nasdaq Rule 10D-1 .
Performance & Track Record
| Metric | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|---|
| Net Revenue ($M) | 338.3 | 467.4 | 450.9 | 433.1 | 482.0 |
| Net Income ($M) | 17.2 | 94.2 | 15.5 | 4.9 | 0.9 |
| Value of $100 Investment (TSR) | 156.55 | 192.10 | 55.93 | 85.03 | 66.53 |
| Adj. EBITDA (ex-clinical) ($M) | — | — | — | — | 64.1 (actual vs $53.0M target) |
- Material weakness was remediated by year-end 2024, with board-acknowledged discretionary bonus for Francisco linked to remediation outcome .
- 2024 bonus outcomes reflected above-target Adjusted EBITDA and near-target revenue; gross margin under target reduced attainment .
Governance, Peer Group, and Say-on-Pay
- Compensation Committee fully independent; uses Pearl Meyer for market benchmarking and PSU design; peer group includes Avanos, CONMED, Orthofix, Pacira, Bioventus, ZimVie, etc. .
- 2024 Say-on-Pay support ~92% (excluding broker non-votes), indicating investor acceptance of pay program .
Risk Indicators & Red Flags
- Tax gross-ups on perquisites present (monitor scale and governance optics) .
- No option repricing permitted without shareholder approval .
- Clawback policy active; insider policy bans hedging, margin, and short sales (reduces misalignment risks) .
- Section 16(a) compliance affirmed for 2024; no delinquent reports .
Investment Implications
- Pay-for-performance alignment improved in 2024–2025 (explicit metrics and PSU introduction); Francisco’s bonus tied to company-level outcomes with additional recognition for control remediation, a positive execution signal .
- Upcoming multi-year vesting of sizable RSU/option grants (160,350 RSUs and 289,915 options in 2024) creates periodic supply; however, no option exercises in 2024 and strict trading/hedging restrictions lower near-term selling pressure risk .
- Double-trigger CIC terms (1× salary + 1× target bonus; equity acceleration) are standard and unlikely to create undue retention risk; 2024 illustrative CIC benefits total ~$2.15M for Francisco .
- Perquisite gross-ups are a governance watch item, but overall program features (no repricing, clawback, independent committee, strong say-on-pay) suggest reasonable shareholder alignment .