Mark Van Oene
PACIFIC BIOSCIENCES OF CALIFORNIAAbout Mark Van Oene
Mark Van Oene, age 52, is Chief Operating Officer of Pacific Biosciences (PacBio), having joined in January 2021 after senior commercial leadership roles at Illumina; he holds a B.S. in biochemistry from Western University and currently serves on the board of Dante Labs Inc. . Company performance during his tenure has been volatile: PacBio reported revenue of $154.0 million and a net loss of $(309.9) million in 2024 (vs. $200.5 million revenue in 2023), and PacBio’s TSR value of an initial fixed $100 investment was $36 in 2024 (vs. $191 in 2023), reflecting challenging execution and market conditions .
Past Roles
| Organization | Role | Years | Strategic Impact/Notes |
|---|---|---|---|
| Illumina, Inc. | Senior Vice President & Chief Commercial Officer | Since 2017 until joining PacBio in Jan 2021 | Senior commercial leadership responsibility |
| Illumina, Inc. | Senior Vice President & General Manager, Americas Commercial Operations | 2006–2017 (prior roles after joining) | Led Americas commercial operations |
| Illumina, Inc. | Vice President, Global Sales | 2006–2017 (prior roles after joining) | Global sales leadership |
External Roles
| Organization | Role | Years | Focus/Notes |
|---|---|---|---|
| Dante Labs Inc. | Board of Directors | Current | Genomics and precision medicine |
Fixed Compensation
| Metric | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Base Salary ($) | $550,000 | $564,167 | $583,538 | $605,000 |
| Target Bonus (%) | 60% | — | — | 60% |
| Target Bonus ($) | $330,000 | — | — | $363,000 |
| Actual Bonus ($) | $375,782 | $190,512 | $352,107 | $108,900 |
Performance Compensation
2024 Variable Cash Incentive Outcomes
| Metric | Target | Actual | Payout Impact |
|---|---|---|---|
| Total Revenue | $170 million | Not achieved | Contributed to 30% overall payout |
| Ending Cash Balance (12/31/2024) | $440 million | $390 million ($444 million excluding SoftBank note exchange effect) | Included adjustment; overall payout 30% |
| Gross Profit | $62 million | Not achieved | Negative impact |
| Revio unit shipments | Internal target | Not achieved | Negative impact |
| Onso unit shipments | Internal target | Not achieved | Negative impact |
| Vega development milestone | Internal target | Achieved at maximum level | Positive impact |
| Employee NPS score | Internal target | Not achieved | Negative impact |
| Customer NPS score | Internal target | Achieved at maximum level | Positive impact |
| Overall payout (CEO/Comp Committee determination) | — | 30% of target | Paid $108,900 to Van Oene |
Equity Awards: Grants and Terms
| Award Type | Grant Date | Shares (#) | Grant Date Fair Value ($) | Vesting Schedule |
|---|---|---|---|---|
| RSUs (New Hire) | 01/08/2021 | 335,000 | — | 25% on each of 1st–4th anniversaries of Start Date |
| Stock Options (New Hire) | 01/08/2021 | 750,000 | — | 25% at 1-year; then monthly (1/48th) thereafter |
| RSUs (Annual) | 02/22/2024 | 798,076 | $4,094,130 | Time-based RSUs vest annually; Company practice uses 2–4-year schedules |
| RSUs (Annual) | 03/02/2023 | 246,375 | — | Time-based RSUs vest annually per plan |
| RSUs (Annual) | 08/25/2022 | 150,000 | — | Time-based RSUs vest annually per plan |
| PSUs (Performance-based; outstanding) | 03/02/2023 | 27,375 (unearned) | Max potential value $2,065,170 | Vests based on performance; PSUs deemed at target upon CIC for change-in-control event |
Outstanding Equity Awards at 12/31/2024
| Grant | Exercisable Options (#) | Unexercisable Options (#) | Exercise Price ($) | Expiration | Unvested RSUs (#) | RSU Market Value ($ at $1.83) |
|---|---|---|---|---|---|---|
| Options (01/08/2021) | 734,366 | 15,634 | $36.70 | 01/08/2031 | — | — |
| Options (03/02/2022) | 297,820 | 135,380 | $11.70 | 03/02/2032 | — | — |
| RSUs (01/08/2021) | — | — | — | — | 83,750 | $153,263 |
| RSUs (03/02/2022) | — | — | — | — | 36,250 | $66,338 |
| RSUs (08/25/2022) | — | — | — | — | 150,000 | $274,500 |
| RSUs (03/02/2023) | — | — | — | — | 246,375 | $450,866 |
| RSUs (02/22/2024) | — | — | — | — | 798,076 | $1,460,479 |
| PSUs (03/02/2023, unearned) | — | — | — | — | 27,375 | $50,096 (market/payout value) |
• Note: As of 12/31/2024, all options were out-of-the-money (exercise prices $36.70 and $11.70 vs. $1.83 year-end price), implying zero intrinsic value at that date .
Equity Ownership & Alignment
- Beneficial ownership: 566,763 shares directly/indirectly owned; rights to acquire 1,214,263 shares within 60 days (options and RSUs), total 1,781,026 shares; <1% of outstanding .
- Insider trading policy prohibits short sales, derivative transactions, pledging and margin accounts—reducing misalignment risk from hedging/pledging .
- Stock ownership guidelines for executives are not disclosed in the proxy; compliance status not disclosed.
Employment Terms
| Provision | Non-CIC Involuntary Termination | Change-in-Control (CIC) Period Termination | CIC Event Only (No Termination) |
|---|---|---|---|
| Salary Severance | 12 months base salary ($605,000) | 12 months base salary ($605,000) paid lump sum | — |
| Target Bonus | — | Prorated target bonus ($363,000) | — |
| Equity Acceleration | None for Van Oene | 100% acceleration of unvested equity | PSUs deemed at target; $200,385 value |
| Health/Cobra | 12 months continuation ($32,372) | 12 months continuation ($32,372) | — |
| CIC Window | — | Expanded to include 3 months prior + 12 months post-CIC | — |
| Clawback | Company clawback policy adopted Oct 2, 2023; applies to incentive-based compensation tied to financial performance (including stock price/TSR) |
Compensation Structure Analysis
- Shift toward RSUs in 2024: PacBio granted only time-based RSUs to NEOs in 2024 to emphasize retention given underwater options and share reserve constraints, reducing reliance on options/PSUs and increasing guaranteed time-based equity .
- Cash vs. equity mix: Base salary rose modestly to $605,000 in 2024 (+3.1% YoY), while equity value (RSUs) for Van Oene was significant at $4.09 million grant-date fair value .
- Discretionary bonus outcomes: Despite multiple 2024 goals missed, the Compensation Committee/Board set payout at 30% of target recognizing “Extraordinary Activities” (e.g., SoftBank exchange), signaling support during transformation .
- Repricing and pledging safeguards: Plan prohibits option repricing without shareholder approval and insider policy bans pledging/hedging, mitigating red flags .
Performance & Track Record
- 2024 operational performance fell short on core financial and shipment goals; however, the Vega development milestone and customer NPS were achieved at maximum level, with overall bonus payout at 30% of target .
- Company TSR and revenue trends during tenure underscore volatility: TSR value was $36 in 2024 vs. $191 in 2023; revenue declined to $154.0 million in 2024 vs. $200.5 million in 2023 .
Investment Implications
- Alignment: Large, multi-year RSU grants create retention hooks and align long-term incentives, but increase future share supply as awards vest; options are currently out-of-the-money, reducing near-term exercise pressure .
- Selling pressure: With substantial unvested RSUs (≈1.31 million units across 2022–2024 grants at YE 2024), periodic vesting could lead to routine sales for tax/liquidity—monitor 10b5‑1 plans and vesting calendars; pledging/hedging is prohibited, which lowers alignment risk .
- Retention/CIC economics: Double-trigger CIC terms with full acceleration and lump-sum severance plus prorated bonus are competitive; expanded CIC window (three months pre-CIC) increases protection—reducing retention risk but potentially increasing acquisition-related dilution .
- Pay-for-performance: 2024 bonus outcomes (30% of target) reflect balanced governance amid misses and select milestones; say‑on‑pay support >95% in 2024 indicates investor acceptance of pay design, though delivery depends on execution against revenue and margin objectives in 2025+ .