Christian O. Henry
PACIFIC BIOSCIENCES OF CALIFORNIAAbout Christian O. Henry
Christian O. Henry, age 57, has served as President and Chief Executive Officer of Pacific Biosciences of California, Inc. since September 2020; he has been a director since 2018 and served as interim Chief Financial Officer from December 2024 to March 2025. He holds a B.A. in biochemistry and cell biology (UC San Diego) and an M.B.A. in finance (UC Irvine), and previously held senior executive roles at Illumina, Tickets.com, Affymetrix, Nektar Therapeutics, and Ernst & Young . Under his leadership, PacBio reported Q2 2025 revenue of $39.8M (+10% YoY), non-GAAP gross margin of 38.3%, strong consumables pull-through, and a growing installed base (297 Revio; 73 Vega), while maintaining ~$315M in cash with reduced operating expenses; management also highlighted record consumable revenue and margin expansion in Q3 2025 . The Board maintains a separate Chair (John F. Milligan), which mitigates dual-role concentration and supports independent oversight of a CEO who is also a director .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Illumina, Inc. | EVP & Chief Commercial Officer; SVP & CCO; SVP & GM Genomic Solutions; SVP CFO & GM Life Sciences; SVP Corporate Development & CFO; SVP & CFO; VP & CFO | 2005–2017 | Led commercial and finance functions, scaling genomic solutions portfolio and global sales execution |
| Tickets.com, Inc. | Chief Financial Officer | 2003–2005 | Enterprise CFO role; strengthened financial operations |
| Affymetrix, Inc. | VP Finance & Corporate Controller | 1999–2003 | Led finance and controls at leading genomics tools company |
| Nektar Therapeutics | Corporate Controller; Chief Accounting Officer | 1997–1999 | Built corporate accounting function in growth phase |
| Sugen, Inc. | General Accounting Manager | 1996 | Managed accounting operations |
| Ernst & Young LLP | Senior Accountant | 1992–1996 | Public accounting foundation; audit experience |
External Roles
| Organization | Role | Years | Committee roles |
|---|---|---|---|
| WAVE Life Sciences Ltd. (NASDAQ: WVE) | Director; Chairman of Board | Current | Chair of compensation committee; member of audit committee |
| Ginkgo Bioworks, Inc. (NYSE: DNA) | Director | Current | Chair of audit committee; member of compensation committee |
| CM Life Sciences III LLC | Director | 2021 | Board service in SPAC context |
Fixed Compensation
Multi-year CEO pay components (USD):
| Component | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary | $666,667 | $695,125 | $725,025 |
| Target Bonus % (of base) | 100% | 100% | 100% |
| Target Bonus ($) | $670,000 | $700,150 | $730,000 |
| Actual Cash Incentive (paid) | $375,200 | $700,150 | $219,000 |
| Stock Awards (grant-date fair value) | $1,257,750 | $6,636,014 | $8,237,595 |
| Option Awards (grant-date fair value) | $4,260,247 | — | — |
| Total Compensation | $6,616,251 | $8,046,575 | $9,181,620 |
Time-based RSU grants and vesting:
| Grant | Shares (#) | Grant date fair value | Vesting schedule |
|---|---|---|---|
| 2024 Annual RSU | 1,605,769 | $8,237,595 | 1/4th on Feb 15 of 2025, 2026, 2027, 2028 |
Outstanding option positions (illustrative key awards):
| Grant date | Shares exercisable | Shares unexercisable | Exercise price | Expiration | Vesting terms |
|---|---|---|---|---|---|
| 09/15/2020 | 1,500,000 | — | $7.32 | 09/15/2030 | 4-year, 1/4 on year 1, then monthly |
| 03/02/2022 | 441,574 | 200,726 | $11.70 | 03/02/2032 | Monthly over 4 years |
| 02/16/2021 | 28,749 | 1,251 | $46.37 | 02/16/2031 | Monthly over 4 years |
Notes:
- In 2024 the company emphasized RSUs over options for retention amid underwater option overhang .
- Employee directors receive no separate board compensation; Henry was excluded from director fee table .
Performance Compensation
Short-term cash incentive design:
| Year | Metric | Target/Threshold | Actual/Payout | Weighting | Notes |
|---|---|---|---|---|---|
| 2024 | Ending cash balance | ≥ $425M threshold | Paid $219,000 total to Henry | Not disclosed | Original plan included financial and margin goals; other criteria not fully disclosed to avoid competitive harm |
| 2023 | Revenue | Min $175M; Target $200M; Max $210M | Not separately disclosed | 25% | Company financial goals weighted 25% each (revenue, ending cash) |
| 2023 | Ending cash balance | Min $600M; Target $625M; Max $650M | Not separately disclosed | 25% | Payout scaled 92–120% of portion based on attainment |
Performance Share Units (PSUs):
| Grant | Target shares | Performance metric | Performance period | Vesting / payout |
|---|---|---|---|---|
| 2023 PSU | 49,558 | FY2025 revenue threshold, with 0% below threshold; up to 200% at max | FY2025 | Eligible to vest upon revenue goal achievement; value shown at threshold in outstanding table |
Equity Ownership & Alignment
| Ownership measure (as of April 10, 2025) | Amount | Notes |
|---|---|---|
| Shares beneficially owned (direct/indirect) | 696,812 | Excludes rights to acquire within 60 days unless noted |
| Right to acquire (options/RSUs within 60 days) | 2,398,562 | As defined by SEC beneficial ownership rules |
| Total beneficial ownership | 3,095,374 | 1.0% of outstanding shares |
| Shares pledged as collateral | Prohibited by policy | Insider trading policy forbids pledging and margin accounts |
| Stock acquired on RSU vesting in 2024 | 366,797; $1,492,023 value | Value computed on vest dates |
Alignment policies:
- Company maintains a clawback policy compliant with Nasdaq and Section 10D, covering incentive compensation tied to financial reporting measures including TSR and stock price .
- Insider trading policy prohibits short sales, options hedging, and pledging, supporting alignment and reducing risk of forced sales .
Employment Terms
Severance and change-in-control summary for CEO:
| Compensation/Benefit | Involuntary termination (no CIC) | Involuntary termination during CIC period | CIC only (no termination) |
|---|---|---|---|
| Salary | $1,095,000 lump sum (18 months) | $1,095,000 lump sum (18 months) | — |
| Target bonus | — | $730,000 (prorated) | — |
| Equity acceleration | $1,062,752 value (service-based awards vest to 6-month mark) | 100% unvested equity vests; $4,222,749 value shown | $362,759 (PSU treatment at target if successor does not assume) |
| Health care (COBRA) | $48,291 (up to 18 months) | $48,291 (up to 18 months) | — |
Key terms:
- Double-trigger equity acceleration during the CIC period (termination without cause or resignation for good reason) leads to 100% vesting of unvested equity; outside CIC, partial acceleration applies to service-based awards .
- Equity plans provide full vesting if awards are not assumed in a change-in-control; performance awards deemed achieved at 100% of target if not assumed .
Board Governance
- Board leadership: Chair and CEO roles are separated; John F. Milligan serves as Chair; Henry is a management director (CEO) .
- Committees: Independent directors staff Audit, Compensation, Corporate Governance & Nominating, and Science & Technology committees; Henry is not listed as a member of these board committees .
- Attendance: The Board held nine meetings in 2024; each director attended at least 75% of Board and committee meetings; all directors then serving attended the 2024 annual meeting .
- Director compensation: Employee directors receive no additional board compensation ; the director compensation table excludes Henry .
Investment Implications
- Pay-for-performance structure uses annual cash incentives tied to financial metrics (revenue, cash, margin) and PSUs tied to FY2025 revenue; RSUs in 2024 skew toward retention amid underwater option risk, balancing dilution controls and talent retention .
- Upcoming RSU vest dates (Feb 15, 2026–2028) create foreseeable supply events; however, pledging/hedging prohibitions and clawback policy reduce misalignment risks .
- Dilution monitoring: Burn rate averaged 4.2% (2022–2024) and overhang was 16.5% as of Mar 31, 2025 (24.2% including the proposed 23M share increase), highlighting equity usage considerations for valuation and shareholder returns .
- Operational execution under Henry shows progress: record consumables, gross margin expansion, cost reductions, and international growth support medium-term margin lift and adoption, with management targeting improved gross margins and positive cash flow trajectory (exiting 2027), which can justify equity-heavy incentives if milestones are met .