Thomas E. Leggett
About Thomas E. Leggett
Thomas E. Leggett (age 48) has served as Chief Financial Officer of Stoke Therapeutics since May 2024. He previously held CFO roles at Affinia Therapeutics (Dec 2021–Apr 2024), Black Diamond Therapeutics (Jan 2019–Dec 2021), and Axcella Health (Jan 2017–Aug 2019), after senior finance roles at Purdue Pharma and investment banking posts at UBS, Lazard, and J.P. Morgan; he holds a B.A. in Economics from Columbia University and an MBA in Finance from Wharton (University of Pennsylvania) . Stoke is a pre‑commercial biopharma; corporate goals drive incentive pay rather than revenue/EBITDA metrics . Company TSR improved year‑over‑year (initial $100 investment to $56.99 in 2023 and $119.50 in 2024), while net loss narrowed from $(104,699)k in 2023 to $(88,981)k in 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Affinia Therapeutics | Chief Financial Officer | Dec 2021–Apr 2024 | Built finance infrastructure in gene therapy; capital planning |
| Black Diamond Therapeutics | Chief Financial Officer | Jan 2019–Dec 2021 | Public company CFO; oncology pipeline financing |
| Axcella Health | Chief Financial Officer | Jan 2017–Aug 2019 | Early-stage metabolic programs; financing strategy |
| Purdue Pharma | Treasurer; Head of BD Finance | May 2015–Dec 2016 | Treasury, business development finance |
| UBS; Lazard; J.P. Morgan | Investment banking roles | Prior to 2015 | Capital markets and advisory experience |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Clover Biopharmaceuticals | Director; Nominating Committee member; Chairman of Audit Committee | Current | Audit oversight; governance |
Fixed Compensation
| Metric | FY 2024 |
|---|---|
| Base Salary ($) | 309,470 |
| Target Bonus (% of salary) | 40% |
Notes:
- 2024 corporate and individual performance goals were assessed at 100% for NEOs; Leggett’s target bonus was 40% of base .
Performance Compensation
Annual Cash Incentive (2024)
| Metric | Weighting | Target | Actual Achievement | Payout | Vesting |
|---|---|---|---|---|---|
| Corporate goals: advance Dravet program, pipeline development, extend cash runway, retain/develop talent | Not disclosed | 100% blended corporate+individual | 100% | $190,001 (non‑equity incentive) | Cash (no vesting) |
Equity Awards Granted (2024)
| Award Type | Grant Date | Shares/Units | Grant-Date Fair Value ($) | Strike Price | Expiration | Vesting |
|---|---|---|---|---|---|---|
| Stock Options (new-hire) | 5/15/2024 | 396,200 | 4,020,915 | $14.13 | 5/15/2034 | 25% at 1-year cliff (5/15/2025), then monthly over remaining 36 months |
| RSUs | — | — | — | — | — | — (no RSUs granted in 2024 for Leggett) |
| PSUs | — | — | — | — | — | — (no PSUs granted in 2024 for Leggett) |
Program design context:
- Stoke used a roughly 33%/33%/33% mix of options/RSUs/PSUs for annual grants in 2024, but Leggett joined post‑cycle and received options only .
- PSU metrics for other executives were tied to advancing zorevunersen into Phase 3, with partial vesting upon milestone achievement (not applicable to Leggett’s 2024 awards) .
Equity Ownership & Alignment
| Ownership Item | Detail |
|---|---|
| Total beneficial ownership | 102,758 shares underlying options exercisable within 60 days of 3/31/2025 (no direct common shares disclosed) |
| Ownership % of outstanding | <1% (company denotes “*” less than one percent) |
| Options exercisable vs. unexercisable (12/31/2024) | 0 exercisable; 396,200 unexercisable (due to 1-year cliff) |
| In‑the‑money value | Not disclosed |
| Hedging/Pledging | Company policy prohibits hedging and pledging absent Compliance Officer approval |
| Stock ownership guidelines | Not disclosed |
| 10b5‑1 trading plan adoption (YTD 2025) | None disclosed for Leggett in Q3 2025 10‑Q; adoptions reported for two directors only |
Outstanding awards detail (12/31/2024):
| Award | Exercisable (#) | Unexercisable (#) | Strike ($) | Expiration |
|---|---|---|---|---|
| Option (5/15/2024) | — | 396,200 | 14.13 | 5/15/2034 |
Employment Terms
| Term | Base Case Severance | Change-of-Control Severance (double trigger) |
|---|---|---|
| Cash severance | 9 months base salary | 12 months base salary |
| Bonus severance | Earned but unpaid bonus; no target multiple | 100% of then‑current target bonus (lump sum) |
| Health benefits | Up to 9 months COBRA reimbursement | Up to 12 months COBRA reimbursement |
| Equity acceleration | None (time-based acceleration not disclosed) | Full acceleration of all unvested equity upon qualifying termination in CoC window |
| Start date / tenure | CFO since May 7, 2024 | |
| Contract term | At‑will employment | |
| Non‑compete / non‑solicit | 12‑month post‑termination non‑solicitation; non‑compete not disclosed for Leggett | |
| Clawback | Company clawback policy adopted Sept 2023 for incentive compensation tied to financial reporting measures | |
| Insider trading policy | Anti‑hedging and anti‑pledging restrictions (exceptions require approval) |
Compensation Structure Analysis
- Equity‑heavy new‑hire grant with 1‑year cliff tilts retention toward at least May 2025; monthly vest thereafter lowers near‑term forfeiture risk but could increase ongoing selling pressure if a plan is adopted later .
- Cash bonus paid at 100% achievement in a milestone‑based framework aligns with developmental execution rather than GAAP metrics; Leggett’s 2024 non‑equity payout was $190,001 .
- No PSUs for Leggett in 2024 (joined post grant cycle), reducing explicit performance‑vesting exposure vs. other NEOs .
- Change‑of‑control economics (12 months base + 100% target bonus + full equity acceleration) are standard for small/mid‑cap biotech; equity acceleration on a double trigger is shareholder‑friendly vs. single trigger .
Related Party Transactions; Risk Indicators
- No related‑party transactions above $120,000 involving executives/directors in 2024–2025, outside normal compensation arrangements .
- Anti‑hedging/pledging policy and SEC‑compliant clawback mitigate alignment risks; no disclosures of pledging by Leggett .
- Q3 2025 10‑Q shows no adoption/modification/termination of a 10b5‑1 plan by Leggett during the period (two directors did adopt) .
Compensation Peer Group (Benchmarking context)
Stoke’s 2024 peer group included public biotech peers in Phase 1–2, market cap $100–$900mm (e.g., 4D Molecular Therapeutics, Generation Bio, Alector, Allogene, Allovir, Annexon, Arcturus, Avidity Biosciences, Caribou, Editas, Lineage, MeiraGTx, Omega, Poseida, REGENXBIO, Repare, Rocket, Vor Biopharma) .
Investment Implications
- Retention risk appears contained through May 2025 due to option cliff; monthly vest thereafter suggests ongoing retention but introduces potential incremental supply if sales commence (no 10b5‑1 plan disclosed yet for Leggett) .
- Alignment: Under 1% ownership but significant unvested options and double‑trigger acceleration create long‑term equity linkage; hedging/pledging restrictions strengthen alignment .
- Pay‑for‑performance: Cash bonus tied to milestone execution in a pre‑commercial context aligns with value inflection points; lack of PSUs in 2024 for Leggett (timing) reduces performance‑vesting exposure versus peers .
- Change‑of‑control terms are standard; full acceleration under double trigger can incentivize supportive behavior in strategic outcomes without encouraging premature exit .
Appendix: Company Performance Indicators
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| TSR (value of initial $100 investment) | 56.99 | 119.50 |
| Net Income ($ thousands) | (104,699) | (88,981) |
Appendix: 2024 Summary Compensation (Leggett)
| Component | FY 2024 ($) |
|---|---|
| Salary | 309,470 |
| Bonus (discretionary above plan) | — |
| Stock Awards (RSUs/PSUs) | — |
| Option Awards (grant-date fair value) | 4,020,915 |
| Non‑equity Incentive Plan Compensation | 190,001 |
| All Other Compensation | — |
| Total | 4,520,386 |