Ilan Danieli
PrecipioAbout Ilan Danieli
Ilan Danieli, age 53, is Precipio’s Chief Executive Officer and a director, serving since June 2017; he founded Precipio Diagnostics LLC and led it from 2011–2017 . He holds an MBA from UVA Darden and a BA in Economics from Bar‑Ilan University, and previously served as COO of Osiris Therapeutics and VP of Operations at Laurus Capital Management . Company performance under his tenure shows revenue growth from FY2022 to FY2024 and narrowing EBITDA losses (see tables), while cumulative TSR as disclosed in pay‑versus‑performance reporting moved from $26.64 in 2022 to $17.53 in 2024, with net income remaining negative .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Precipio Diagnostics LLC | Founder & Chief Executive Officer | 2011–2017 | Built the initial team and model that became Precipio; deep market understanding in cancer diagnostics |
| Osiris Therapeutics, Inc. | Chief Operating Officer | Not disclosed | Operational, financial, sales/marketing background; multinational operations experience |
| Laurus Capital Management LLC | VP of Operations | Not disclosed | Hedge fund operations experience; contributed financial discipline |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| None disclosed | — | — | No additional public company board roles or external committee positions were disclosed for Danieli |
Board Governance
- Board service: Director since 2017; currently a Class I director nominated for term expiring in 2028 .
- Committee roles: Not a member of Audit, Compensation, or Nominating & Governance (all committees are 100% independent) .
- Chair/CEO structure: Independent Chair (Richard Sandberg) separates governance from management, mitigating dual‑role independence concerns .
- Attendance: 100% director and committee meeting attendance in FY2024 .
Fixed Compensation
Multi‑year compensation for Ilan Danieli:
| Metric (USD) | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary | $300,000 | $300,000 | $300,000 |
| Bonus (cash/incentive) | $0 | $0 | $100,000 (3‑year payout contingent) |
| Option Awards (grant‑date fair value) | $481,000 | $148,375 | $36,240 |
| All Other Compensation | $24,103 | $25,065 | $25,862 |
| Total | $805,103 | $473,440 | $462,102 |
Notes: FY2024 incentive award payable quarterly over 3 years, subject to cash and Adjusted EBITDA thresholds (see next section) .
Performance Compensation
Annual bonus structure (FY2024)
| Element | Description |
|---|---|
| Performance metrics | Pathology sales, product sales, cash flow, and qualitative objectives (organizational stability, shareholder communications) |
| Payout mechanics | $100,000 award; payable quarterly pro‑rata over three years starting end of Q1‑2025 |
| Financial gates | Minimum cash balance of $1.5M and cumulative Adjusted EBITDA thresholds each quarter; unpaid portion forfeited by Q4‑2027 unless termination without cause |
| Clawback | Company‑wide clawback policy compliant with Nasdaq/SEC; recoupment for restatements or intentional misconduct |
| Hedging policy | Prohibits short sales, derivatives, hedging instruments |
Option awards (time‑based)
| Grant date | Options (#) | Exercise price | Vesting | Expiration |
|---|---|---|---|---|
| 6/21/2024 | 8,000 | $4.98 | 25% at 1‑year; remainder monthly over 36 months (service‑based) | 6/21/2034 |
Option awards (performance‑based)
| Grant date | Options (#) | Exercise price | Vesting condition | Expiration |
|---|---|---|---|---|
| 1/14/2025 | 8,000 | $6.06 (closing price on grant date) | Vests only if 10‑day VWAP exceeds $30.30 (5× exercise price); otherwise unvested | 1/14/2035 |
Option repricing (retention adjustment)
- On 8/31/2024, the Board repriced certain options with exercise prices above $6.56 down to $6.56; for Danieli, 44,971 options were repriced (20,500 not repriced). Original exercise price applies if exercised within one‑year “Retention Period” (unless termination without cause) .
- Purpose: Retention/motivation of employees and directors; ~177,000 of ~304,000 options repriced Company‑wide .
Equity Ownership & Alignment
Beneficial ownership (multi‑year)
| Date | Shares owned (direct + LLC) | Options/warrants exercisable ≤60 days | Total beneficial ownership | % of class |
|---|---|---|---|---|
| Record Date: 4/21/2023 | 57,046 (11,314 via IDP Holdings LLC + 45,732 direct) | 459,412 | 516,458 | 2.2% |
| Record Date: 4/19/2024 | 2,852 (565 via IDP Holdings LLC + 2,287 direct) | 37,243 | 40,095 | 2.7% |
| Record Date: 4/21/2025 | 2,852 (565 via IDP Holdings LLC + 2,287 direct) | 49,050 | 51,902 | 3.3% |
Notes: Anti‑hedging policy prohibits hedging/derivatives; no pledging disclosures found in proxies .
Outstanding equity awards (as of 12/31/2024)
| Grant date | Exercisable | Unexercisable | Exercise price | Expiration |
|---|---|---|---|---|
| 9/26/2017 | 222 | — | $6.56 (repriced) | 9/26/2027 |
| 2/16/2018 | 3,333 | — | $6.56 (repriced) | 2/16/2028 |
| 3/18/2019 | 833 | — | $6.56 (repriced) | 3/18/2029 |
| 1/16/2020 | 3,000 | — | $6.56 (repriced) | 1/16/2030 |
| 1/4/2021 | 3,284 | 49 | $6.56 (repriced) | 1/4/2031 |
| 8/3/2021 | 15,000 | 3,000 | $6.56 (repriced) | 8/3/2031 |
| 1/11/2022 | 11,860 | 4,390 | $6.56 (repriced) | 1/11/2032 |
| 1/6/2023 | 5,996 | 6,504 | $12.40 | 1/6/2033 |
| 6/21/2024 | — | 8,000 | $4.98 | 6/21/2034 |
Employment Terms
| Provision | Base case termination (without cause / good reason) | Change‑of‑control (sale event) within 12 months + termination |
|---|---|---|
| Salary severance | 9 months of base salary (lump sum) | 12 months of base salary (lump sum) |
| Bonus severance | Not specified (base case) | 12 months of bonus payout at 100% of plan |
| Health benefits | COBRA employer contribution for 9 months | COBRA employer contribution for 12 months |
| Equity vesting | Accelerated vesting of all unvested options/equity awards | Accelerated vesting of all unvested options/equity awards |
| Restrictive covenants | 12‑month non‑compete and non‑solicit; confidentiality | Same |
| 280G clawback | Included | Included |
Effective date of Danieli’s employment agreement: August 7, 2018 .
Performance & Track Record
Financial trajectory (reported fiscal years)
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenue (USD) | $9.412M | $15.197M | $18.532M |
| EBITDA (USD) | ($11.464M)* | ($6.312M)* | ($2.920M)* |
Values retrieved from S&P Global.*
Pay‑Versus‑Performance indicators
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Cumulative TSR (value of initial fixed $100 investment) | $26.64 | $15.70 | $17.53 |
| Net Income (thousands) | ($12,178) | ($5,853) | ($4,290) |
Related Party / Red Flags
- Related party transactions: None since January 1, 2023, other than compensation arrangements; prior (2018) bridge note transaction involved director David S. Cohen, not Danieli .
- Legal proceedings: No disqualifying legal proceedings disclosed for directors or executive officers in past ten years .
- Option repricing: Company conducted broad option repricing to $6.56 in August 2024, including Danieli’s options; retention‑period conditions apply (original exercise price if exercised within one year) .
- Hedging/derivatives: Prohibited under insider trading policy .
Director Compensation (for completeness on dual roles)
- Employee‑directors (including Danieli) receive no separate director compensation; independent director fee structure and equity grants are disclosed separately .
Compensation Committee / Governance
- Compensation Committee: Independent directors (Chair David S. Cohen; member Ron A. Andrews) with authority over executive pay programs, clawbacks, stock ownership guidelines, and consultant retention .
- Nominating & Governance Committee: Independent oversight of ESG and governance frameworks .
Investment Implications
- Pay‑for‑performance alignment: FY2024 bonus is subject to cash and Adjusted EBITDA gates and multi‑year payout; adoption of SEC‑compliant clawback strengthens alignment and recourse .
- Retention dynamics: August 2024 option repricing plus 2025 performance‑vest options (10‑day VWAP hurdle $30.30) create both retention and performance‑driven upside; near‑term exercise during the retention period requires original higher strike, tempering immediate selling pressure .
- Ownership skin‑in‑the‑game: Danieli beneficially owns 3.3% of outstanding shares (including options exercisable within 60 days), with anti‑hedging policy and no pledging disclosures—positive alignment signals .
- Change‑of‑control economics: Double‑trigger package includes 12 months salary, 12 months bonus at plan, COBRA, and full vesting—market‑typical but implies meaningful incentive to pursue value‑creating strategic alternatives where appropriate .