Juan Carlos Jaen
About Juan Carlos Jaen
Juan Carlos Jaen, Ph.D., age 67, is Co‑founder and President of Arcus Biosciences (since May 2015). He holds a B.S. in Chemistry from Universidad Complutense de Madrid and a Ph.D. in Organic Chemistry from the University of Michigan, with core credentials in medicinal chemistry, translational science, and CMC leadership across late-stage oncology programs . Company performance disclosures show total shareholder return (TSR) for a $100 investment at $147.43 in 2024, $194.36 in 2023, $204.75 in 2022, $400.69 in 2021, and $257.03 in 2020, contextualizing incentive alignment during his tenure .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Parke‑Davis Pharmaceutical Research (Warner‑Lambert) | Drug discovery and program management | 1983–1996 | Early drug discovery leadership; program management experience |
| Tularik, Inc. | Director/VP Chemistry | 1996–2004 | Built chemistry capabilities; contributed to pipeline later acquired by Amgen |
| Amgen Inc. | Vice President of Chemistry | 2004–2006 | Led chemistry across large portfolio; scale-up in big pharma environment |
| ChemoCentryx, Inc. | SVP Drug Discovery & Chief Scientific Officer | 2007–2013 | Directed discovery; CSO accountability over program strategy |
| Flexus Biosciences, Inc. | Co‑founder, President & Head of R&D | 2013–2015 | Drove immuno‑oncology platform; company acquired by Bristol‑Myers Squibb |
External Roles
| Organization | Role | Years |
|---|---|---|
| Bella Charitable Foundation | Director | Current |
| Breakpoint Therapeutics GmbH | Director | Current |
| Hexagon Bio, Inc. | Director | Current |
| R2M Pharma, Inc. | Director | Current |
| Shasqi, Inc. | Director | Current |
| PACT Pharma, Inc. | Director | 2016–2022 |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 550,000 | 575,000 | 625,000 |
| Target Bonus % | — | — | 50% |
| Target Bonus ($) | — | — | 312,500 |
| Actual Bonus Paid ($) | 370,000 | 300,000 | 315,000 |
Performance Compensation
| Component | Grant Date | Award Value ($) | Instrument | Quantity | Strike/Terms | Vesting |
|---|---|---|---|---|---|---|
| Annual equity award | 1/23/2024 | 2,370,416 (sum of RSU + option grant-date fair values) | Options | 162,400 | $15.44; 10‑yr | 1/48 monthly from 1/1/2024 |
| Annual equity award | 1/23/2024 | 617,600 | RSUs | 40,000 | N/A | 25% annually each anniversary of 12/15/2024 |
| Equity mix policy (execs) | 2024 | ~67% options / ~33% RSUs | Policy | — | — | Committee policy mix |
| 2024 Corporate Performance Metrics | Weighting | Target | Actual/Payout | Notes |
|---|---|---|---|---|
| Phase 3 timelines (STAR‑121/221) | Not disclosed | Not disclosed | Bonus paid $315,000 | Enrollment accelerated for STAR‑221; critical to pipeline |
| Quemliclustat Phase 3 (PRISM‑1) initiation | Not disclosed | Not disclosed | Included in bonus determination | Trial initiated; Taiho participation |
| Casdatifan data supporting dev plan | Not disclosed | Not disclosed | Included in bonus determination | Differentiation vs competitor; supports PEAK‑1 |
| Early‑stage programs (AB801, AB598) advancement | Not disclosed | Not disclosed | Included in bonus determination | First expansion cohort for AB598 |
| Funding to mid‑2027 runway | Not disclosed | Not disclosed | Included in bonus determination | $320M Gilead follow‑on; Hercules facility |
Notes: Arcus does not disclose metric weightings/targets; the Compensation Committee evaluates holistic progress and individual contributions in determining payouts .
Equity Ownership & Alignment
| Ownership Detail | Value |
|---|---|
| Shares owned directly/indirectly | 1,444,741 (includes 1,188,233 held by trusts) |
| Shares acquirable within 60 days | 785,632 (options/RSUs within 60 days of 3/1/2025) |
| Total beneficially owned | 2,230,373 shares (2.1% of outstanding) |
| Unvested RSUs at 12/31/2024 | 7,812 (2022 grant); 22,900 (2023 grant); 30,000 (2024 grant) |
| Options outstanding (exercisable/unexercisable, terms) | See table below |
| Insider trading policy | Prohibits short sales, derivatives, and borrowing to purchase company securities |
| Pledging/Hedging disclosure | Hedging via derivatives prohibited; no explicit pledging prohibition disclosed |
| Stock ownership guidelines | Not disclosed in proxy |
| Option Grants (Jaen) | Exercisable (#) | Unexercisable (#) | Exercise Price ($) | Expiration |
|---|---|---|---|---|
| 1/16/2019 | 200,000 | — | 10.36 | 1/15/2029 |
| 1/17/2020 | 200,000 | — | 10.23 | 1/16/2030 |
| 1/19/2021 | 113,828 | 2,422 | 36.73 | 1/18/2031 |
| 3/8/2022 | 91,146 | 33,854 | 33.03 | 3/7/2032 |
| 1/23/2023 | 89,077 | 96,823 | 22.02 | 1/22/2033 |
| 1/23/2024 | 37,217 | 125,183 | 15.44 | 1/22/2034 |
- In‑the‑money value at 12/31/2024 close ($14.89) for ITM grants: 2019 ≈ (14.89−10.36)×200,000 = $906,000; 2020 ≈ (14.89−10.23)×200,000 = $932,000. All other listed strikes ≥$15.44 were out‑of‑the‑money at that date .
Employment Terms
| Scenario | Cash Severance ($) | Bonus ($) | Health Benefits ($) | Equity Acceleration ($) | Total ($) |
|---|---|---|---|---|---|
| Termination without Cause or for Good Reason within 12 months of Change in Control | 1,250,000 | 312,500 | 67,195 | 904,002 | 2,533,697 |
| Termination without Cause (no CIC) | 625,000 | 312,500 (discretionary) | 33,598 | — | 971,098 |
- Double‑trigger CIC: 24 months base, 100% target bonus, full equity vesting; non‑CIC: 12 months base, discretionary prorated target bonus, COBRA premiums during severance period .
- Definitions: Cause/Good Reason/CIC set per plan; release required to receive benefits .
- Clawback: Dodd‑Frank/NYSE‑compliant clawback for excess incentive‑based comp upon a covered restatement .
- Perquisites/benefits: 401(k) match up to $5,000/year; health & wellness/mobile device stipend $600 per quarter; All Other Compensation for Jaen in 2024 totals $14,544 (includes life insurance and 401(k) match) .
Multi‑Year Compensation Summary (Jaen)
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | 550,000 | 575,000 | 625,000 |
| Stock Awards ($) | 1,032,188 | 1,008,516 | 617,600 |
| Stock Options ($) | 2,793,350 | 2,852,338 | 1,752,816 |
| Non‑Equity Incentive ($) | 370,000 | 300,000 | 315,000 |
| All Other Compensation ($) | 11,144 | 14,544 | 14,544 |
| Total ($) | 4,756,682 | 4,750,398 | 3,324,960 |
Compensation Structure Analysis
- Equity mix remains option‑heavy (~67% options / ~33% RSUs), aligning value realization with long‑term stock price appreciation; 2024 individual award sizing considered performance, existing holdings, retention value, and market data via Radford .
- 2024 equity grant values for Jaen declined vs 2023 (options and RSUs down), while base salary increased to remain market‑competitive; cash bonus remained close to target reflecting clinical progress and funding milestones .
- Say‑on‑pay support remained strong: ~96% approval at 2024 annual meeting for 2023 compensation, signaling shareholder endorsement of pay philosophy .
- Peer group updated in 2024 to reflect stage/cap dynamics; added BridgeBio, Day One, ImmunityBio; removed Apellis, Fate, ImmunoGen, Revance .
Related Party and Governance Notes
- Insider Trading Policy bans short sales and derivatives; no explicit pledging prohibition disclosed in proxy .
- Gilead relationship: collaboration options/licensing, co‑development/cost sharing, board designees pursuant to Investor Rights Agreement; common stock purchases up to 35% ownership (Gilead holds 35.0%) .
- Committee note: Compensation Committee currently chaired by Dr. Kaneko; membership updated in March 2025 (Lambert replaced Falberg) .
Investment Implications
- Pay‑for‑performance alignment: Option‑heavy grants tie realized value to long‑term TSR; bonus outcomes reflect clinical execution across registrational programs (domvanalimab/zimberelimab; casdatifan; quemliclustat) and funding runway to mid‑2027 .
- Retention vs selling pressure: Monthly option vesting and annual RSU vesting (Dec 15 anniversaries) create recurrent potential liquidity events; unvested RSUs of ~60,712 at YE 2024 suggest ongoing near‑term vest cadence .
- Change‑in‑control economics: Double‑trigger acceleration and 24‑month cash severance could facilitate leadership continuity through strategic transactions but create event‑driven overhang; investors should factor CIC protections in M&A scenarios .
- Ownership alignment: 2.1% beneficial stake with significant trust holdings; legacy 2019/2020 options are in‑the‑money at 12/31/2024 prices, reinforcing alignment without leverage/derivative hedges per policy .
- Governance feedback loop: Strong say‑on‑pay support and updated peer benchmarking mitigate pay inflation risk; continued disclosure gaps on pledging/explicit ownership guidelines warrant monitoring .