Ian Estepan
Sarepta TherapeuticsAbout Ian Estepan
Ian M. Estepan is Executive Vice President and Chief Financial Officer of Sarepta Therapeutics (CFO since December 2020). He joined Sarepta in 2015 after 15 years managing a buy-side portfolio of pharma/biotech/medtech equities at Spectra Financial Group; he holds a B.A. in psychology (pre‑medicine) from Columbia University. 2024 corporate performance drove above‑target incentives: total company revenue reached $1.79B (Elevidys $821M; PMO products ~$967M), corporate goal achievement was assessed at 135%, and NEO cash bonuses were paid at 130% of target; Elevidys label expansion (including non‑ambulatory accelerated approval) triggered immediate PSU vesting in June 2024 . Estepan’s compensation design is heavily performance‑based with PSUs tied to product revenue, cash flow, and regulatory milestones, aligning pay with shareholder value creation .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Sarepta Therapeutics | Senior Director, Corporate Affairs | 2015–2016 | Built corporate affairs foundation pre‑CFO tenure |
| Sarepta Therapeutics | Executive Director, Corporate Affairs | Oct 2016–Dec 2017 | Advanced corporate strategy and stakeholder engagement |
| Sarepta Therapeutics | Vice President, Chief of Staff & Corporate Affairs | Jan 2018–Feb 2019 | Operational coordination across executive office and corporate functions |
| Sarepta Therapeutics | Senior Vice President, Chief of Staff & Corporate Affairs | Feb 2019–Dec 2020 | Supported CEO and execution of strategic priorities |
| Sarepta Therapeutics | Executive Vice President, Chief Financial Officer | Dec 2020–Present | Finance leadership through Elevidys launch and label expansion |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Cellarity (private) | Director | Since Nov 2021 | External insights into biopharma innovation |
| AbBC Therapies (private) | Executive Chairman | Current | Leadership in private biotech; network/resource leverage |
| Spectra Financial Group | Buy‑side Portfolio Manager | 15 years | Deep capital markets and sector investing experience |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $636,400 | $661,856 |
| Target Bonus % of Salary | Not disclosed | 50% |
| Target Bonus ($) | N/A | $330,928 |
| Actual Bonus Paid ($) | $365,930 (paid Mar 2024) | $430,206 (paid Mar 2025) |
| Payout vs Target | N/A | 130% of target for NEOs |
Performance Compensation
2024 Equity Awards (granted March 1, 2024)
| Award Type | Grant Date | Shares (Target) | Shares (Max) | Strike/Price | Grant‑Date Fair Value ($) | Vesting Schedule |
|---|---|---|---|---|---|---|
| PSUs | 3/1/2024 | 12,500 | 15,625 | N/A | $0 (performance not probable at grant) | Milestone‑based earning; earned portions vest 3/1/2026, except Milestone One vested immediately upon achievement |
| RSUs | 3/1/2024 | 6,000 | N/A | N/A | $772,020 | 25% on 3/1/2025; then 25% annually; fully vests 3/1/2028 |
| Options | 3/1/2024 | 12,500 | N/A | $128.67 | $845,250 | 25% on 3/1/2025; then 1/48 monthly; fully vests 3/1/2028 |
2024 PSU Milestones and Status
| Milestone | Metric/Thresholds | Potential Earned (% of Award) | Actual Status | Payout Earned | Vesting |
|---|---|---|---|---|---|
| Milestone One: Elevidys Label Expansion | Ages 4–7 (30%); Ambulatory (40%); Non‑Ambulatory (50%) | Up to 50% | Achieved at Non‑Ambulatory level (June 2024) | 50% | Immediate vesting on 6/20/2024 |
| Milestone Two: Cumulative Net Product Revenue 2024–2025 | ≥$2.7B (30%); ≥$3.3B (40%); ≥$4.0B (50%) | Up to 50% | Outstanding | N/A | If earned, vest 3/1/2026 |
| Milestone Three: Positive Cash Flow | Over 4 consecutive quarters (20%); cumulatively over vesting period (25%) | Up to 25% | Outstanding | N/A | If earned, vest 3/1/2026 |
| Milestone Four: LGMD 2E (SRP‑9003) Accelerated Approval | By 3/1/2026 (25%); by 12/31/2025 (31.25%) | Up to 31.25% | Outstanding | N/A | If earned, vest 3/1/2026 |
Annual Bonus Mechanics (2024 Corporate Goals)
| Goal Area | Target Weight | Achievement Score | Notes |
|---|---|---|---|
| Elevidys | 40% | 60% | Non‑ambulatory AA and traditional approval achieved |
| 2024 Revenue | 30% | 45% | Total revenue ~$1.79B (Elevidys ~$821M; PMO ~$967M) |
| External Opportunities | 10% | 13% | Arrowhead collaboration/licensing signed |
| Advance Pipeline | 10% | 7% | SRP‑9003 enrollment complete; SRP‑5051 discontinued |
| Enablers | 10% | 10% | Operated within budget; culture, policy advocacy |
| Total Achievement | — | 135% | Bonuses paid at 130% of target |
Equity Ownership & Alignment
| Date (As of) | Beneficial Ownership (Shares) | % of Class | Options Exercisable within 60 Days (Included) |
|---|---|---|---|
| Apr 8, 2024 | 246,253 | <1% | 227,214 |
| Apr 8, 2025 | 294,553 | <1% | 248,967 |
- 2024 vesting and exercises: Estepan had 14,075 shares vest (RSUs/PSUs) in 2024, realizing $1,752,801; no stock options were exercised in 2024 .
- Stock ownership guidelines: Executives must own stock equal to 1× base salary; all NEOs are in compliance .
- Hedging/pledging: Company prohibits hedging and pledging of Sarepta stock .
- Clawbacks: Robust Dodd‑Frank clawback for erroneously‑paid incentive comp and additional discretionary clawback for over‑limit equity grants .
Selected outstanding equity awards at 12/31/2024 (market values assume $121.59/share):
- RSUs: 3,750 ($455,963) ; 4,000 ($486,360)
- PSUs (earned/unvested from prior cycles): 1,375 ($167,186) ; 17,500 ($2,127,825) vesting March 2025
- Options: multiple tranches outstanding with strikes $12.00–$169.54 and expirations spanning 2025–2034
Employment Terms
- Employment: At‑will per offer letter dated December 18, 2014; initial salary $280,000 and target bonus up to 25% (subsequently increased); promoted to CFO in 2020; commuting costs reimbursed to/from New York and Cambridge, MA .
- Severance (not in connection with Change in Control): Cash $992,784; COBRA $29,269; total $1,022,053 .
- Change‑in‑Control (double‑trigger): If terminated without cause/constructive termination within 12 months post‑CIC, cash = 18 months base salary + 100% target bonus; accelerated vesting of all unvested equity; COBRA up to 18 months; Estepan amounts shown: Cash $1,323,712; accelerated equity vesting $6,559,553; COBRA $43,904; total $7,927,168 (valued at $121.59/share) .
- Restrictive covenants: Non‑solicitation of customers during employment and for one year thereafter; mutual non‑disparagement .
- Severance Letters (2019 framework referenced in 2023 proxy): Upon qualifying termination (without cause or for good reason), salary continuation (Non‑Competition Consideration) for 3 months; plus severance equal to nine months base salary and target bonus; COBRA paid during severance period (subject to co‑pay) .
- Clawback policies: Dodd‑Frank compliant recoupment for restatements; discretionary clawback for grants exceeding stockholder‑approved plan limits .
- Perquisites: 401(k) matching and LTD premiums; commuting payments include a tax gross‑up of $15,320 in 2024 .
Investment Implications
- Pay‑for‑performance alignment: Estepan’s variable pay tightly linked to operational metrics and stock performance; 2024 PSUs include revenue thresholds through 2025 and a cash‑flow milestone, creating direct incentives around commercialization execution and financial discipline .
- Vesting calendar and potential selling pressure: Key dates include annual RSU tranches each March 1 through 2028; ongoing monthly option vesting through March 2028; significant PSU vesting on March 1, 2026 contingent on milestones; a large prior PSU tranche vested March 6, 2025. These dates can concentrate insider share releases and potential selling activity windows .
- Retention risk vs. change‑in‑control economics: Material unvested equity plus 9‑month severance (non‑CIC) support retention; CIC benefits with full acceleration heighten potential transaction‑related payout but are appropriately double‑triggered, mitigating misalignment risk .
- Governance quality: Prohibitions on hedging/pledging and robust clawbacks are positive signals; note the commuting tax gross‑up in 2024 as a minor shareholder‑unfriendly element, though overall perquisites remain modest .
- Ownership and skin‑in‑the‑game: Beneficial ownership increased from 246,253 (2024) to 294,553 (2025) with substantial in‑the‑money options; compliance with ownership guidelines supports alignment, but overall ownership remains <1% of shares outstanding given company size .