Nevan Charles Elam
RezoluteAbout Nevan Charles Elam
Nevan Charles Elam is 57 and has served as Rezolute’s Chief Executive Officer since January 31, 2013; he has been Acting Chairman of the Board since May 2022 . He holds a J.D. from Harvard Law School and a B.A. from Howard University; prior roles span legal, operating, and finance leadership in life sciences and technology . Pay-versus-performance disclosure shows Compensation Actually Paid (CAP) to the PEO of $(1,958,066) in FY2023, $4,958,776 in FY2024, and $2,095,714 in FY2025, versus TSR index values of $14, $30, and $31, and net income of $(51,787,000), $(68,459,000), and $(74,412,000), respectively, highlighting sensitivity to equity valuation and loss-making operations .
Board governance and dual-role implications: The board currently combines Chair and CEO roles under Elam and states this is the most effective structure given his deep company knowledge; Elam and Young-Jin Kim are not “independent” under Nasdaq rules, which can raise oversight concerns mitigated by committee structures and independent directors . The board’s risk oversight allocates accounting/ERM to Audit, compensation risk to Compensation, and succession/governance to Nominating and Governance .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| European medical device company | Chief Executive Officer | — | Operating leadership in medtech, relevant to commercialization readiness |
| Software company | Co-founder and Chief Financial Officer | — | Early-stage finance leadership, scaling and capital allocation |
| Nektar Therapeutics | Senior Vice President | — | Biopharma operating experience, portfolio and program management |
| Wilson Sonsini Goodrich & Rosati | Corporate Partner | — | Legal/regulatory counsel to pharma clients |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Savara, Inc. | Director | — | Current public company directorship |
Fixed Compensation
| Component | FY 2024 | FY 2025 |
|---|---|---|
| Base Salary ($) | $550,167 | $610,825 |
| All Other Compensation ($) | $23,273 | $21,418 |
Notes:
- Base salary increased over time, most recently to $625,000 effective September 15, 2024 per board approval .
- Benefits include health, dental, disability and life insurance premiums .
Performance Compensation
Annual Cash Bonus
| Metric | Target | Actual FY 2024 ($) | Actual FY 2025 ($) | Payout Timing | Notes |
|---|---|---|---|---|---|
| Annual cash bonus | Up to 60% of annual base salary | $342,228 | $451,662 | Approved and paid in the following Feb (2024 bonuses paid Feb 2024; 2025 bonuses expected early 2026) | As of each June 30, management estimated ~50% of target achievement for that calendar performance year |
Disclosure does not specify the exact performance metrics or weightings used (e.g., revenue, clinical milestones) .
Equity Awards Granted and Vesting
| Grant Date | Instrument | Shares/Options | Exercise Price ($) | Vesting Schedule | Expiration | Notes |
|---|---|---|---|---|---|---|
| 6/23/2022 | Stock Options | 1,950,000 exercisable; 650,000 unexercisable | 3.40 | 25% at first anniversary; remainder monthly over 36 months from July 1, 2023 | 6/23/2032 | Time-based; no performance conditions |
| 1/23/2024 | Stock Options | 160,555 exercisable; 179,445 unexercisable | 1.02 | Monthly over 36 months beginning Jan 23, 2024 | 1/23/2034 | Time-based |
| 2/16/2025 | Stock Options | 13,333 exercisable; 106,667 unexercisable | 4.61 | Monthly over 36 months beginning Mar 16, 2025 | 2/16/2035 | Time-based |
| 6/10/2025 | Stock Options | 40,000 unexercisable | 4.39 | Monthly over 36 months beginning July 10, 2025 | 6/10/2035 | Time-based |
| 2/16/2025 | RSUs | 204,000 unvested; market value $909,840 | — | Annual tranches over 3 years beginning March 1, 2026 | — | Time-based |
| 6/10/2025 | RSUs | 68,000 unvested; market value $303,280 | — | Annual tranches over 3 years beginning July 1, 2026 | — | Time-based |
- No option exercises occurred in FY2025 for any NEOs, limiting near-term selling pressure from exercise-and-sell activity .
- Company discloses no formal timing policy for equity grants; Compensation Committee does not time awards around MNPI, and no grants were made within the defined MNPI window in FY2025 .
Pay Versus Performance (PEO)
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Summary Compensation Table — Total ($) | $973,646 | $1,192,700 | $2,851,109 |
| Compensation Actually Paid ($) | $(1,958,066) | $4,958,776 | $2,095,714 |
| TSR Index (Value of $100 Investment) ($) | $14 | $30 | $31 |
| Net Income ($) | $(51,787,000) | $(68,459,000) | $(74,412,000) |
Equity Ownership & Alignment
| Item | Amount |
|---|---|
| Total beneficial ownership (shares) | 2,995,673 |
| Ownership as % of outstanding | 3.30% (out of 90,828,052 shares outstanding at record date) |
| Options — exercisable | 2,698,888 |
| Options — unexercisable | 976,112 |
| RSUs — unvested | 272,000; market value $1,213,120 |
| Hedging/pledging policy | Hedging, short sales, options trading, margin accounts prohibited; pledging generally prohibited except limited, pre-approved exceptions |
| Options exercised FY2025 | None |
The proxy does not disclose director/executive stock ownership guidelines or compliance status .
Employment Terms
- Current employment agreement: Effective February 15, 2021; target bonus up to 60% of base salary; successive salary increases approved, most recently to $625,000 on September 15, 2024; subject to confidentiality, non-competition, and non-solicitation obligations .
- Amended and restated employment agreement (January 8, 2023) — termination without Cause or for Good Reason, outside change of control:
- Severance equal to 3x then-current base salary, plus 150% of annual Target Bonus, accrued vacation, and continuation of certain benefits; paid over 12 months .
- Option vesting accelerates for shares that would have vested over the 18 months post-termination; vested options exercisable for 12 months .
- Within 12 months of a Change of Control (termination without Cause or for Good Reason):
- Full acceleration of all stock options; lapse of any repurchase rights; immediate vesting of RSUs; 12-month post-termination exercise window for equity .
- Clawback policy: In compliance with SEC/Nasdaq rules; recovers incentive compensation tied to restated financial measures for up to three years, irrespective of fault; administered by Compensation Committee .
Board Governance
- Board leadership: Elam serves as combined Chairman and CEO; board asserts this structure currently best fits the company given Elam’s knowledge and ability to elevate critical issues .
- Independence: Elam and Young-Jin Kim are not “independent” under Nasdaq rules; other directors are independent, and committees are composed of non-officers .
- Committees: Audit chaired by Gil Labrucherie; Nominating & Governance members include Dr. Kreher, Mr. Labrucherie, Mr. Fauchet, and Dr. Hogenhuis; committee service is compensated .
Director Compensation (Elam)
Elam receives no incremental compensation for serving as Acting Chair of the Board . The proxy does not provide specific cash retainer or equity grant details for directors beyond noting committee service compensation for certain members .
Related Party and Capital Structure Notes
- Significant holders: Federated Hermes (14.99%), FMR LLC (14.11%), Handok, Inc. (9.27%) .
- 2025 private placement: Handok purchased 1,230,769 shares at $3.25; director Nerissa Kreher purchased 3,076 shares at $3.25 .
- Equity plan amendment: Board seeks shareholder approval to increase 2021 Plan share authorization from 14,450,000 to 21,950,000 shares .
Risk Indicators
- Legal proceedings: No disqualifying events disclosed for directors/executives over past ten years .
- Equity grant timing: Compensation Committee does not consider MNPI in timing; no grants within the specified MNPI window in FY2025 .
- Hedging/pledging: Prohibited, limiting misalignment risks .
- Say-on-Pay: Advisory vote on NEO compensation proposed; approval percentages not disclosed in this proxy .
Investment Implications
- Dual-role governance: Combined Chair/CEO with non-independence may concern some investors; the board emphasizes committee oversight and independence among other directors to mitigate oversight risk .
- Equity overhang and unlocks: Large time-based option and RSU grants vesting monthly/annually beginning in 2025–2026 could create periodic supply; absence of FY2025 option exercises indicates limited immediate selling pressure .
- Pay/performance alignment: CAP is volatile and driven by equity valuation; persistent negative net income and low TSR index values underscore execution risk until value-creating milestones are delivered .
- Retention and change-of-control economics: Rich severance terms (3x salary and 150% of Target Bonus; accelerated vesting) and double-trigger CoC protections support retention but can be shareholder-costly upon leadership transition; benefits require termination within 12 months of a CoC, reducing windfall risk from mere transaction completion .
- Governance and clawback: Prohibitions on hedging/pledging and a compliant clawback policy strengthen alignment and reduce compensation risk .
- Dilution watch: Proposed expansion of the equity plan to 21,950,000 shares increases potential dilution, requiring careful monitoring versus progress on clinical/commercial milestones .
Sources:
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