Eddie J. Sullivan
About Eddie J. Sullivan
Eddie J. Sullivan, PhD, is SABS’s co-founder, President, and Class III Director. He has served as President since 2014 and previously served as CEO from 2014 to January 2024 . Age: 59 . Education: undergraduate degree from the University of Arizona; graduate degrees from Brigham Young University, Kennedy-Western University, and Utah State University in reproduction and business . Track record includes leading predecessor entity Hematech (Kyowa Hakko Kirin subsidiary), raising more than $250M for biopharma platform technologies, and multiple M&A executions; he is recognized as a thought leader in antibodies and transgenic animals .
Company performance context:
- Revenues declined from FY 2022 to FY 2024 while net losses persisted; see table below (S&P Global values).*
- SAB-142 advanced with Phase 1 positive topline data in January 2025 and a planned global Phase 2b “SAFEGUARD” trial initiation in mid-2025 .
Company Performance (Financials)
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues (USD) | $23,904,181* | $2,238,991* | $1,322,410* |
| Net Income (USD) | $(18,740,804)* | $(42,193,786)* | $(34,105,309)* |
Values retrieved from S&P Global.*
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| SAB Biotherapeutics (SABS) | Co-founder; CEO; President | CEO: 2014–Jan 2024; President: 2014–present | Built platform, advanced SAB-142; fundraising and M&A leadership |
| Hematech (Kyowa Hakko Kirin subsidiary) | CEO/Leadership roles | Pre-2014 | Led infectious disease, oncology, autoimmune immunotherapies |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Biotechnology Innovation Organization (BIO) | Board member; Executive Committee | n/a | Policy/industry leadership in antibodies/transgenic animals |
| South Dakota Research Commercialization Council | Governor-appointed member | n/a | State-level research commercialization oversight |
| South Dakota NSF-EPSCoR Committee | Chairman | n/a | Research infrastructure leadership |
| South Dakota Biotech (BIO affiliate) | Founder; past President; Advisor | n/a | State biotech ecosystem development |
Fixed Compensation
Multi-year executive compensation for Eddie J. Sullivan:
| Component | 2023 (USD) | 2024 (USD) |
|---|---|---|
| Base Salary | $377,200 | $480,900 |
| Option Awards (grant-date fair value) | $202,598 | $852,773 |
| Stock Awards | — | — |
| Non-Equity Incentive (Cash Bonus) | — | $250,000 |
| All Other Compensation | $25,359 | $13,482 |
Employment agreement (effective March 5, 2024): base salary $485,000; eligibility for Company benefit plans .
Performance Compensation
Annual bonus plan structure: cash incentive awards are tied to corporate performance goals and individual performance goals; awards are capped and subject to clawback for intentional misconduct (policy applies to executive officers) .
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Annual Bonus (2024) | Not disclosed | Not disclosed | Not disclosed | $250,000 cash | N/A |
Stock option grants and vesting schedules:
| Grant Date | Shares | Exercise Price | Vesting Schedule | Notes |
|---|---|---|---|---|
| Sep 13, 2022 | 3,500 | $7.11 | 25% at 1-year; remainder in 36 monthly installments | Time-based |
| Mar 14, 2023 | 52,500 | $5.35 | Same as above | Time-based |
| Feb 20, 2024 | 190,000 | $5.17 | Same as above | Time-based |
| Jul 15, 2024 | 4,447 | $2.90 | Same as above | Time-based |
| Jul 15, 2024 | 46,528 | $5.40 | Fully vested at grant (matched expiring option) | Fully vested |
Equity Ownership & Alignment
Beneficial ownership (Common Stock):
- 660,391 shares; 7.01% of common stock; 4.1% of total voting power (as of March 21, 2025) .
- 686,147 shares; 6.49% of common stock (as of August 1, 2025) .
Outstanding options (as of Dec 31, 2024):
| Option | Exercisable (#) | Unexercisable (#) | Exercise Price | Expiration |
|---|---|---|---|---|
| Grant 2010 | 2,326 | — | $26.90 | 04/26/2030 |
| Grant 2012 | 2,121 | — | $17.80 | 03/15/2032 |
| Sep 13, 2022 | 1,968 | 1,532 | $7.11 | 09/12/2032 |
| Mar 13, 2023 | 22,968 | 29,532 | $5.35 | 03/13/2033 |
| Feb 20, 2024 | — | 190,000 | $5.17 | 02/20/2034 |
| Jul 15, 2024 | 46,528 | — | $5.40 | 07/15/2034 |
| Jul 15, 2024 | — | 4,447 | $2.90 | 07/15/2034 |
Alignment policies:
- Hedging is prohibited for directors, officers, and employees .
- Company states robust stock ownership guidelines for executive officers (specific multiples not disclosed) .
- No pledging policy disclosure found.
Employment Terms
Executive Employment Agreement (March 5, 2024): if terminated without Cause or upon non-renewal:
- Severance: one year of then base salary, lump sum five business days after release .
- Accrued but unpaid annual bonus for prior fiscal year (paid on same schedule as other executives) .
- 100% acceleration: all outstanding unvested equity awards fully vested and exercisable as of termination date .
- COBRA reimbursement for spouse/dependents for 12 months .
- Standard nondisclosure, invention assignment, and arbitration provisions .
- Non-compete/non-solicit terms not disclosed for Dr. Sullivan.
Potential payments table indicates salary amounts under termination/change-in-control scenarios (no equity or perquisite values shown in that illustrative table) .
Board Governance
- Role: Class III Director and President .
- Independence: committees (Audit, Compensation, Nominating) comprised entirely of independent directors; executive directors (including Dr. Sullivan) are not independent nor committee members .
- Board attendance: Board held seven meetings in 2024; each director attended at least 75% of applicable meetings .
- Executive sessions: independent directors met seven times in 2024 .
- Leadership structure: Chairman and CEO roles combined under Samuel J. Reich; Board believes combined roles benefit stockholders .
Dual-role implications: Dr. Sullivan’s executive + director status reduces independence; mitigated by committee independence, but combined Chair/CEO structure concentrates leadership (potential governance risk) .
Director Compensation
Non-employee directors receive cash retainers and annual/inaugural option grants; employee directors typically do not receive additional director compensation. No separate director compensation disclosed for Dr. Sullivan .
Related Policies and Risk Indicators
- Clawback: Board can recoup erroneously awarded performance-based compensation for intentional misconduct by executive officers .
- Insider Trading: prohibited while in possession of MNPI; hedging transactions prohibited .
- Legal proceedings: none required to be disclosed for directors or executive officers .
Structural dilution/overhang risk:
- Series B Preferred conversion could issue ~100M shares upon approval, increasing outstanding common from ~10.4M to ~110.4M (≈1,061% increase); full conversion including warrants up to ~250M shares; management warns of market overhang and potential price pressure .
- August 2025 Plan Amendment sought to increase equity plan reserve to 31,932,466 shares and expand evergreen up to 73,750,000 shares .
Compensation Committee Analysis
- Composition: all independent (Chair Christine Hamilton; members Erick Lucera, Katie Ellias) .
- May retain independent consultants, with independence review per Nasdaq and SEC rules .
- Risk assessment: balanced mix of short- and long-term incentives; capped cash awards; clawback; stock ownership guidelines .
Say-on-Pay & Shareholder Feedback
No say-on-pay proposals disclosed in 2025 proxy; historical say-on-pay approval percentages not disclosed .
Company Performance Context for Pay-for-Performance
SAB-142 program milestones:
- FDA IND clearance in May 2024 and positive Phase 1 topline data in January 2025; Phase 2b planned in mid-2025 . Strategic risks:
- Going-concern explanatory paragraph noted by auditor (EisnerAmper) for 2024 financials .
Investment Implications
- Alignment: Dr. Sullivan’s substantial equity ownership (7.01% common; 4.1% voting as of March 2025) aligns incentives with shareholders; vesting acceleration on termination without cause elevates retention risk and weakens pure pay-for-performance discipline .
- Performance linkage: Bonus structure references corporate/individual goals, but specific metrics/weightings not disclosed; limited transparency reduces ability to assess tight pay-performance linkage .
- Selling pressure overhang: Potential issuance of 100–250M new shares (Series B conversion/warrants) and enlarged equity plan reserve create significant dilution overhang that could depress stock, affecting option value realization and potentially incentivizing executives to seek accelerated vesting events .
- Governance: Executive dual-role (President + Director) plus combined Chair/CEO may raise independence concerns; mitigated by independent committees and executive sessions, yet concentration of leadership persists .
- Strategic execution: Advancement of SAB-142 into Phase 2b supports value creation potential; however, persistent net losses and going-concern risk underscore financing and execution vulnerabilities .
References
- Governance, compensation, and executive biography disclosures .
- Special Meeting proxy and dilution/plan amendment .
- 10-K program pipeline and milestones; executive/board composition .