Frederick Sullivan
Senseonics HoldingsAbout Frederick Sullivan
Frederick (“Rick”) Sullivan is Chief Financial Officer of Senseonics Holdings, Inc. (appointed September 1, 2022), age 41, with a B.S. in accounting (Salisbury University) and an MBA (University of Maryland). He is an active CPA (Maryland) and previously served as Senseonics’ VP Finance, Treasurer/Head of Strategy & FP&A, and Corporate Controller; externally he was CFO of RoosterBio and Principal of Hike Financial . During his CFO tenure, Senseonics’ revenue grew from $16.4M (FY2022) to $22.4M (FY2023) and $22.5M (FY2024), while net results were $(60.4)M (FY2023) and $(78.6)M (FY2024); TSR fell from $38.58 (FY2022) to $21.35 (FY2023) and $19.60 (FY2024) on a $100 base .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Senseonics | Corporate Controller | 2011–2017 | Built controllership, financial reporting processes during growth phase . |
| Senseonics | Treasurer; Head of Strategy & Financial Planning | 2017–2018 | Led treasury and FP&A to support commercialization plans . |
| Senseonics | Vice President of Finance | Oct 2020–Sep 2022 | Oversaw finance prior to promotion to CFO . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| RoosterBio, Inc. | Chief Financial Officer | Jul 2018–Aug 2019 | Led finance for regenerative medicine company . |
| Hike Financial, LLC | Principal | Aug 2019–Oct 2020 | Provided financial, accounting and administrative advisory services to early-growth life sciences/tech firms . |
Fixed Compensation
| Component | Detail |
|---|---|
| Base Salary | $370,000 at CFO appointment (Sep 1, 2022) . |
| Target Bonus % | Up to 50% of base salary; determined by Compensation Committee based on individual performance and company goals . |
Performance Compensation
- Bonus determination: Compensation Committee assesses Mr. Sullivan’s performance and the Company’s attainment of targeted goals; specific metrics and weightings for the CFO are not disclosed .
- Company-wide goals informing executive bonuses include financial performance, regulatory milestones, and product development objectives (used for named executive officers in 2023–2024) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Initial RSU Grant | 62,147 RSUs granted Sep 1, 2022 under the 2015 Plan . |
| Vesting Schedule | Eight equal installments: first on Nov 15, 2022; then semi-annual on May 15 and Nov 15 through completion (semi-annual cadence) . |
| Hedging/Pledging Policy | Company prohibits short sales, puts/calls, hedging, securities pledging, margin accounts; applies to employees and officers . |
| Clawback Policy | SEC/NYSE American-compliant clawback covering erroneously awarded incentive compensation for current/former executive officers upon any required restatement (3-year lookback) . |
| Beneficial Ownership | Individual share/option holdings for Mr. Sullivan are not separately disclosed in 2024–2025 proxy ownership tables; group totals include executives and directors . |
| Section 16 Compliance | Filed a late Form 4 on May 17, 2023 (along with other executives) . |
Vesting cadence and potential insider selling pressure
- The 62,147 RSUs vest semi-annually (Nov/May), creating discrete potential sale windows if shares are sold to cover taxes or rebalance; trading is subject to insider trading windows and policy restrictions (no hedging/pledging) .
Employment Terms
| Provision | Economics/Terms |
|---|---|
| Employment Start | Appointed CFO effective Sep 1, 2022 . |
| Annual Bonus Eligibility | Up to 50% of base salary, per Committee assessment . |
| Severance (no cause/good reason) | 12 months base salary; prorated portion of target bonus for year of termination; up to 12 months of employee benefit coverage; reimbursement of owed expenses; subject to release/conditions . |
| Change-of-Control | If terminated without cause within 12 months post-CoC (double trigger): 100% acceleration of then-unvested equity awards, plus standard severance/benefits; resignation for good reason coincident with CoC receives severance; (no single-trigger acceleration disclosed) . |
| Participation | Eligible for ESPP and employee benefit plans . |
Company Performance (context for pay-for-performance)
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Total Revenue ($M) | $16.4 | $22.4 | $22.5 |
| Net Income (Loss) ($M) | $142.1 | $(60.4) | $(78.6) |
| TSR (Value per $100 initial) | $38.58 | $21.35 | $19.60 |
Additional context:
- Revenue concentration with Ascensia (exclusive distributor): 93% of net revenues in 2023; 82% in 2024, indicating key-partner dependency and working capital dynamics CFO must manage .
- Capital structure actions: Authorized share increase in 2024; reverse split authorization (1-for-10 to 1-for-20) proposed in 2025 to support listing/commercial objectives (affects equity planning and dilution) .
Compensation Structure Analysis
- Shift from options to RSUs (since 2020) reduces option overhang and aligns with retention/stock volatility considerations; executives receive multi-tranche RSUs vesting semi-annually .
- Use of independent consultant (Willis Towers Watson) and peer benchmarking; Committee retains authority over goals and payouts .
- Clawback and anti-hedging/pledging tighten alignment and reduce shareholder risk from executive hedging .
Related Party Transactions
- No transactions involving Mr. Sullivan requiring disclosure under Item 404(a) at appointment; Company discloses broad Ascensia/PHC arrangements separately (distribution and financing) .
Risk Indicators & Red Flags
- Revenue concentration risk with Ascensia (93% in 2023; 82% in 2024) .
- Reverse split authorization (common in small-cap restructurings) may signal continued need to support listing/liquidity and capital raising .
- Late Section 16 filing in 2023 (administrative compliance issue) .
Investment Implications
- Alignment: Semi-annual RSU vesting, clawback, and strict anti-hedging/pledging policies support alignment; double-trigger CoC acceleration is standard, limiting single-trigger windfalls .
- Retention risk: Severance (12 months salary + prorated bonus) and RSU cadence provide retention hooks; no disclosed guaranteed bonuses; pay tied to Committee goals .
- Trading signals: Expect semi-annual RSU vesting supply; monitor Form 4s and trading windows; reverse split authorization may impact float/liquidity and option/RSU counts proportionally .
- Execution risk: CFO oversees capital and partner terms amid concentrated distributor exposure and continuing losses; revenue grew, but TSR declined, highlighting path-to-profitability and capital strategy importance .