Andrew Murphy
Executive Vice President, Research at REGN
Executive
About Andrew Murphy
Andrew J. Murphy, Ph.D. (age 67) is Executive Vice President, Research at Regeneron, leading core discovery platforms and multiple therapeutic areas; he is a co‑inventor of VelociGene and VelocImmune and has been with Regeneron since 1999, serving as EVP Research since January 2019 . Education: B.S. Molecular Biology (University of Wisconsin) and Ph.D. Human Genetics (Columbia University College of Physicians & Surgeons) . Company performance context during his tenure includes 2024 revenue of $14.2B (+8% YoY) and GAAP diluted EPS up 10% YoY; the board also highlights cumulative TSR of ~3,300% since the 1991 IPO, reflecting long‑term value creation from R&D productivity .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Regeneron | Executive Vice President, Research | 2019–present | Leads discovery platforms and therapeutic focus areas; co‑inventor of VelociGene/VelocImmune |
| Regeneron Laboratories | Senior Vice President, Research | 2013–2018 | Scaled R&D leadership across programs |
| Regeneron | Vice President, Target Discovery | 2005–2012 | Built target discovery capability |
| Regeneron | Vice President, Gene Discovery & Bioinformatics | 2001–2005 | Advanced genomics/data capabilities |
| Regeneron | Director, Genomics & Bioinformatics | 1999–2000 | Established foundational genomics functions |
External Roles
- Not disclosed in the 2025 proxy.
Fixed Compensation
| Metric | 2022 | 2023 | 2024 | 2025 (set in Dec-2024) |
|---|---|---|---|---|
| Base Salary ($) | $750,000 | $776,250 | $803,600 | $819,672 (2.0% merit) |
| Target Bonus (%) | 65% | 65% | 65% | 65% (unchanged) |
| Actual Cash Incentive ($) | $848,250 | $877,939 | $783,510 (Company multiplier 1.5; Personal 1.5; 60/40 weight) |
Performance Compensation
Annual Cash Incentive Mechanics (2024)
| Metric | Weighting | Target | Actual | Payout Basis | Vesting/Timing |
|---|---|---|---|---|---|
| Corporate Performance Multiplier | 60% | Pre-set goals (R&D, commercial, regulatory) | 1.5 (down from 1.9 in 2023) | Committee framework (milestones plus adjustments) | Paid after year-end |
| Personal Performance Multiplier | 40% | Role-specific contributions | 1.5 | Committee assessment | Paid after year-end |
| Target Dollar ($) | — | $522,340 | $783,510 | Formula: Base×Target%×weighted multipliers | Paid in 2025 for 2024 |
2024 Equity Awards (granted 12/06/2024)
| Instrument | Shares Granted | Grant-Date Fair Value ($) | Exercise/Strike ($) | Close Price on Grant Date ($) | Vesting Schedule |
|---|---|---|---|---|---|
| Stock Options (Non-qualified) | 13,472 | $4,049,729 | $771.64 | $778.00 | 25% per year over 4 years; 10-year term |
| Restricted Stock Awards (RSAs) | 3,499 | $2,699,968 | — | — | 50% on 2nd anniversary; 50% on 4th anniversary |
| Total Year-End Equity (Target Value) | — | $6,750,000 (60% options / 40% RSAs) | — | — | Subject to clawback policy |
Realized Equity Value (2024)
| Metric | Amount |
|---|---|
| Options Exercised (shares) | 40,000 |
| Value Realized on Option Exercises ($) | $26,279,800 |
| RSAs Vested (shares) | 3,029 |
| Value Realized on RSA Vesting ($) | $2,267,791 |
Equity Ownership & Alignment
| Metric | Detail |
|---|---|
| Beneficial Ownership (shares) | 268,499 total; includes 215,077 options exercisable or within 60 days, 18,778 RSAs, and 4,348 shares in 401(k); less than 1% of common shares outstanding |
| Ownership Guidelines | NEOs must own shares valued at least 2× base salary; CEO/CSO 6×; company prohibits hedging and pledging |
| Insider Trading Policy | Formal insider trading policy; disclosed in 10-K exhibit and summarized in proxy |
| Alignment Indicators | Broad-based equity, long-term vesting, clawback; options deliver value only with post-grant stock appreciation |
Employment Terms
| Provision | Key Terms |
|---|---|
| Change-in-Control Severance Plan | Applies to NEOs (excluding CEO); double-trigger required (termination without cause or for good reason within 2 years after/180 days before CoC) |
| Cash Severance Multiple | 2× (base salary + average cash incentive prior 3 years) |
| Benefits Continuation | Up to 24 months for medical, dental, vision, disability, life; includes tax/financial planning advisory; medical benefits assumed taxable with gross-up under plan |
| Equity Treatment | Double-trigger acceleration; options/RSAs vest as specified; exercise period extension subject to plan limits; PSU treatment differs for CEO/CSO 2020 grant |
| 280G Cutback | Payments reduced to avoid excise tax unless net-of-tax benefit is higher without reduction |
| Restrictive Covenants | Includes one-year non-solicitation of employees; value not ascribed in excise tax analysis |
| Clawback | Broad policy covering incentive compensation; enhanced in 2023 per Nasdaq listing standards |
| Perquisites Policy | Committee-approved senior officer perquisites policy adopted in 2024 |
Estimated CoC Economics (Hypothetical as of 12/31/2024)
| Component | Amount ($) |
|---|---|
| Cash Severance | $3,304,266 |
| Benefits Continuation | $133,507 |
| Value of Accelerated Options/RSAs | $13,626,617 |
| Total | $17,064,390 |
Investment Implications
- Pay-for-performance alignment: Murphy’s cash bonus framework is tied to corporate milestones and personal contributions (1.5 multipliers, 60/40 weight), while substantial option/RSAs grants vest over multiple years, supporting long-term retention and alignment .
- Selling pressure vs. retention: 2024 realizations ($26.3M via option exercises; $2.27M RSA vesting) indicate periodic monetization, but sizable unvested RSAs and multi-year vesting on 2024 grants mitigate near-term sell pressure; double-trigger CoC terms further discourage opportunistic departures .
- Governance safeguards: Prohibitions on hedging/pledging, robust clawback, ownership guidelines, and excise tax cutback reduce misalignment and windfall risks; medical benefit gross-up exists under the plan but no excise tax gross-ups (CEO exception only) .
- Execution risk: Committee lowered 2024 corporate multiplier to 1.5 due to missed commercial/regulatory goals (EYLEA HD U.S. net sales target miss; FDA CRLs for odronextamab/linvoseltamab), highlighting sensitivity of incentive outcomes to pipeline execution under Murphy’s research remit .
Overall, Murphy’s incentives are structured to drive long-term R&D outcomes, with retention supported by multi-year equity vesting and CoC protections, while realized exercises suggest ongoing diversification; watch FDA timelines and pivotal readouts for oncology/immunology programs as primary drivers of future payouts and potential insider activity .