Eric Pauwels
PTC THERAPEUTICSAbout Eric Pauwels
Eric Pauwels, age 64, is Chief Business Officer at PTC Therapeutics with 40 years of healthcare experience across biopharma and medical devices; he joined PTC in March 2015 and has served as CBO since April 2020 after leading the Americas commercial organization . He holds a B.S. from California State Polytechnic University, Pomona . In 2024, PTC delivered ~$806.8M in revenue versus a $600–$680M KPI target as part of a 145% corporate performance rating; Pauwels’ individual performance modifier was 1.05, reflecting his role in exceeding revenue goals, strong Translarna/Emflaza execution despite headwinds, and geographic expansion into MENA and LATAM . Company TSR since 2020 equated to $93.98 for a fixed $100 investment as of year-end 2024, providing context for pay-versus-performance alignment .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Shire Rare Disease Business | Chief Commercial Officer | 2005–2010 | Built rare disease commercial capability as first CCO; foundation for orphan commercialization platforms . |
| Accuray Inc. | Chief Marketing Officer | 2011 | Led marketing for medical devices; broadened commercialization experience . |
| NPS Pharmaceuticals (acquired by Shire) | Chief Commercial Officer and President, International | 2011–2015 | Scaled international commercial operations; prepared assets for integration . |
| PTC Therapeutics | SVP & General Manager – Americas | 2015–2020 | Led Americas commercial operations; set base for later global expansion . |
| PTC Therapeutics | Chief Business Officer | 2020–present | Oversees commercial and BD strategy; execution against ambitious revenue and market expansion goals . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Subsidiary of PTC | Director | Not disclosed | Serves as a director of one PTC subsidiary (company did not name the entity) . |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary Paid ($) | $530,533 | $549,117 | $570,217 |
| Base Salary Rate ($) | — | — | $573,900 (effective Mar 1, 2024) |
| Target Bonus (% of Salary) | — | 45% | 50% |
| Actual Bonus Paid ($) | $304,900 | $198,600 | $436,900 |
Performance Compensation
| Metric | Target | Actual | Payout | Vesting/Timing |
|---|---|---|---|---|
| Annual Cash Incentive – Corporate Rating | — | — | 145% corporate rating based on overall achievement | Awards determined Jan 2025 . |
| Individual Performance Modifier (Pauwels) | — | — | 1.05 reflecting commercial execution and market expansion | Applied to 2024 incentive . |
| Calculated 2024 Cash Incentive | 50% of salary target | Corporate 145% × Individual 1.05 → 152.3% of target | $436,900 paid | Paid in 2025 for 2024 performance . |
| Revenue KPI (FY2024) | $600–$680M | ~$806.8M | Exceeded (contributed to 145% rating) | Cash incentive. |
| GAAP R&D+SG&A KPI (FY2024) | $740–$835M (GAAP); $660–$755M (non-GAAP) | ~$835.4M GAAP; ~$760.8M non-GAAP | Achieved (slight overspend tied to continued EU Translarna commercialization and extra NDA prep deemed positive) | Cash incentive. |
| Business Development KPIs | In-license with near-term revenue; identify research strategic partner | Novartis HD PTC518 license ($1.0B upfront, milestones/royalties); partner identification achieved | Achieved (major value creation) | Cash incentive. |
| “Enduring PTC Engine” KPI | Org/process/systems improvements; low voluntary turnover; digital/AI enhancements; HQ consolidation | Achieved; multiple awards; enterprise AI deployed; footprint consolidation to energy-efficient sites | Achieved | Cash incentive. |
Equity Grants and Vesting (Pauwels)
| Grant Type | Grant Date | Shares / Units | Exercise Price | Grant-Date Fair Value ($) | Vesting Schedule |
|---|---|---|---|---|---|
| Stock Options | Feb 15, 2024 | 55,000 | $25.69 | $742,031 | 4-year: 25% at 1st anniversary, then 6.25% quarterly . |
| RSUs (Annual) | Feb 15, 2024 | 22,000 | — | $565,180 | 4-year: 25% annually from Feb 15, 2025 . |
| RSUs (Supplemental) | Feb 15, 2024 | 2,300 | — | $59,087 | 2-year: 50% annually from Feb 15, 2025 . |
| Option Exercises (2024) | — | — | — | — | None exercised in 2024 . |
| RSUs Vested (2024) | — | 14,948 | — | $411,336 value realized | As per prior-year grants . |
Equity Ownership & Alignment
| Item | Value |
|---|---|
| Total beneficial ownership | 340,052 shares comprised of 320,262 options exercisable within 60 days and 19,965 common shares . |
| Ownership % of outstanding | Less than 1% of 79,237,622 shares outstanding (record date Apr 21, 2025) . |
| Pledging/Hedging | Prohibited for all employees/executives/directors; short sales and speculative options also prohibited . |
| Stock ownership guidelines | Executives must hold stock equal to 1× three-year average cash compensation; as of Dec 15, 2024, all NEOs were compliant or within grace period . |
| Outstanding awards (Dec 31, 2024) | Multiple option series exercisable/unexercisable with expirations through 2034; representative holdings include 55,781 exercisable at $66.49 (Jan 5, 2031), 43,312 exercisable at $38.10 (Jan 6, 2032), and 55,000 unexercisable at $25.69 (Feb 14, 2034), plus RSUs across 2019–2024 grants (see proxy table) . |
Employment Terms
| Term | Detail |
|---|---|
| Employment start date | March 9, 2015 (SVP & GM – Americas); amended April 16, 2020 (promoted to Chief Business Officer) . |
| Agreement term | Continues until terminated by either party with written notice; annual salary review (no decreases) and participation in incentive programs and benefit plans . |
| Non-compete | 18 months post-termination (scope tied to PTC’s fields and programs, subject to state law) . |
| Non-solicit | 18 months post-termination (customers, partners, vendors, employees, contractors) . |
| Severance (no CIC) | 12 months base salary and up to 12 months health coverage upon termination without cause or for good reason (subject to release) . |
| Change-in-control (CIC) | Double-trigger; upon qualifying termination within 3 months before/12 months after CIC: 12 months base salary, target annual bonus paid, up to 12 months health coverage (or cash equivalent), and full acceleration of outstanding equity awards . |
| Potential payouts (illustrative) | As of Dec 31, 2024: no-CIC total $613,591; with-CIC total $2,456,475 (components detailed in proxy) . |
| Clawback | Executive clawback policy compliant with SEC/Nasdaq; recovery upon restatements regardless of misconduct; SOX 304 reimbursement for CEO/CFO in misconduct-related restatements . |
| Tax (280G/4999) | Best-net approach historically disclosed (full or cutback to avoid excise tax, whichever yields higher after-tax) . |
Investment Implications
- Alignment: Incentive design emphasizes at-risk pay; for non-CEO NEOs, 75.6% of primary compensation (salary, target bonus, equity) was variable in 2024; equity mix favored options (~45% by value) which require stock appreciation, supporting alignment with shareholders .
- Execution and value creation: 2024 outperformance on revenue (~$806.8M) and BD (Novartis HD deal with $1.0B upfront) drove a 145% corporate rating; Pauwels’ commercial leadership contributed to exceeding targets and expanding markets, supporting his 152.3% incentive payout and signaling strong operational execution .
- Retention and selling pressure: Upcoming vesting from 2024 RSUs (first vest Feb 15, 2025; 25%/50% schedules) and large pools of exercisable options may create periodic liquidity windows; policy prohibitions on hedging/pledging mitigate misalignment risk .
- Contract protections: Double-trigger CIC equity acceleration and 12-month cash/benefits provide retention stability; non-compete/non-solicit (18 months) reduce transition risk, although best-net 280G treatment (no gross-up) limits shareholder-unfriendly tax outcomes .
- Governance signals: Strong 2024 say-on-pay approval (~98.1%) indicates investor support for compensation structure; stock ownership guidelines met/within grace support skin-in-the-game .