Venkatesh Srinivasan
SUTRO BIOPHARMAAbout Venkatesh Srinivasan
Venkatesh Srinivasan, Ph.D., age 63, is Chief Technical Operations Officer (CTO) of Sutro Biopharma (STRO). He became CTO in May 2023 after joining Sutro in April 2022 as SVP, Process, Analytical and Formulation Development; previously he served as Vice President, Global Manufacturing Sciences & Technology at Bayer AG, co‑founded GlycoRx Partners, and held senior roles at Phyton Biotech . He holds a B.S. in Chemical Engineering (IIT Chennai) and a Ph.D. in Chemical Engineering (SUNY), with post‑doctoral appointments at Cornell University and UC Davis . Company performance during his Sutro tenure has been mixed: FY2024 revenue was $62.0M with a net loss of $(227.5)M , and the “value of initial $100 investment” TSR metric fell to $12 in 2024 (from $37 in 2022 and $20 in 2023) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Bayer AG | VP, Global Manufacturing Sciences & Technology | 2011–2022 | Led global MSAT; scale‑up and tech transfer leadership for biologics manufacturing |
| GlycoRx Partners, LLC | Co‑founder, Partner | 2009–2011 | Developed novel glycoengineering platform for half‑life extended proteins/peptides |
| Phyton Biotech, LLC | Senior Director, Bioprocess Development; Director, Business Development | Not disclosed | Bioprocess development and BD for plant cell culture and biologics supply chains |
| Sutro Biopharma | SVP, Process/Analytical/Formulation Development → CTO | 2022–present | Externalization and scale‑up of cell‑free manufacturing; CMC leadership |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Cornell University (School of Engineering) | Post‑doctoral appointment | Not disclosed | Advanced work relevant to antibody engineering and bioprocessing |
| University of California, Davis (Antibody Engineering Lab) | Post‑doctoral appointment | Not disclosed | Antibody engineering research |
Company Performance Context
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenue ($USD Millions) | $67.8 | $153.7 | $62.0 |
| Net Loss ($USD Millions) | $(119.2) | $(106.8) | $(227.5) |
| “Value of $100 investment” (TSR) | $37 | $20 | $12 |
Fixed Compensation
| Component | Company Practice | Vesting / Notes |
|---|---|---|
| Base salary | Executive salaries set by Compensation Committee; individual non‑NEO salaries not disclosed in proxy | Srinivasan’s specific base not disclosed (not a 2024 NEO) |
| Annual bonus target | Company uses performance‑based cash incentives; targets vary by role; NEO targets (CEO 60%, President/COO 50%, CFO 40%) shown; non‑NEO targets not disclosed | Payouts tied to corporate goal achievement and individual contribution; no guarantee |
| Stock options | Used to align long‑term value; vest monthly over 4 years (1/48th per month) | Granted by Comp Committee; value only upon stock price appreciation |
| RSUs | Used for retention and alignment; vest 25% annually over 4 years | Less dilutive than options; supports multi‑year cycles |
| Perquisites | Generally not provided to execs; limited relocation/housing applied to Ms. Chung only | None disclosed for Srinivasan |
Performance Compensation
Company-wide annual incentive metrics and 2024 outcomes (apply to executive incentive structure; individual CTO payout not disclosed):
| Metric Category | Weighting (%) | Target Summary | Actual Achievement | Company-level Payout |
|---|---|---|---|---|
| Luvelta development & partnering | 40% | Advance Phase 2/3; execute out‑license/collab | Partial (clinical progress; no out‑license) | Contributed to 65% overall |
| Proprietary pipeline progression | 20% | Advance STRO‑004 and preclinical programs | Full (STRO‑004 nominated; IND‑enabling on track) | Contributed to 65% overall |
| Partnered program progression | 5% | Achieve collaboration milestones | Full (milestones achieved; confidential) | Contributed to 65% overall |
| New dealmaking | 20% | Out‑license/collab transactions | Partial (STRO‑003 to Ipsen; no new research deal) | Contributed to 65% overall |
| Manufacturing readiness for next stage | 5% | Externalize scale‑up; CDMO tech transfer | Full (external GMP supply; 4000L tech transfer) | Contributed to 65% overall |
| Financial performance | 5% | Cash/investments runway target | Not achieved (insufficient runway target) | Contributed to 65% overall |
| Culture/talent/team execution | 5% | Retention, compliance, DEI, awards | Full (recognitions; turnover below industry) | Contributed to 65% overall |
| Company-level result | — | — | Overall achievement 65% | 65% payout of target (NEO benchmark) |
Additional governance signals:
- Say‑on‑pay support was 98.8% in 2024, indicating broad shareholder approval of compensation design .
- Peer group comprises 19 oncology/biotech companies; used for benchmarking of grants and pay mix .
Equity Ownership & Alignment
- Individual beneficial ownership for Srinivasan is not listed in the 2025 proxy’s Security Ownership table (which covers >5% holders, directors, NEOs, and the group total); Srinivasan was not a 2024 NEO, so his personal holdings are not disclosed there .
- Hedging and pledging are prohibited for all directors, officers, and employees under the Insider Trading Policy (e.g., collars, forwards, swaps, exchange funds) .
- Clawback policy adopted November 12, 2023; enables recovery of incentive‑based compensation in the event of an accounting restatement under SEC/Nasdaq rules .
Employment Terms
Sutro’s Executive Severance and Change‑in‑Control (CIC) Plan applies to executives VP and above (CTO falls under “other chief executives”):
| Scenario | Cash Severance | Bonus Treatment | COBRA | Equity Vesting |
|---|---|---|---|---|
| Termination without cause / resignation for good reason (no CIC) | 15 months of base salary for other chief executives (CEO: 18; SVP/VP: 9) | Pro‑rata bonus based on actual achievement, paid at normal timing | Up to 15 months | Accelerated vesting of time‑based options/RSUs that would vest within 15 months (performance awards per grant terms) |
| Double‑trigger CIC (termination within 18 months of CIC) | Lump sum 15 months base salary (CEO: 18; SVP/VP: 9) | Pro‑rata target bonus + 1.25x target bonus for other chief executives (CEO: 1.5x; SVP/VP: 0.75x), lump sum | Up to 15 months | Full acceleration of all options/RSUs (performance awards per grant terms) |
- Plan auto‑renews for successive three‑year periods; amendments cannot diminish benefits in‑flight .
- Employment is at‑will; offer letters and confidentiality/invention assignment agreements govern executives .
Investment Implications
- Alignment: Equity‑heavy pay mix (options vest monthly; RSUs vest annually) and prohibition on hedging/pledging support shareholder alignment; clawback adds risk discipline .
- Retention risk: Severance and CIC terms (15‑month salary, bonus, COBRA, vesting acceleration) provide retention and transition protections for CTO‑level roles; however, the March 2025 restructuring (deprioritizing luvelta, ~50% workforce reduction, exiting the internal GMP facility) elevates organizational change risk in Srinivasan’s domain, even as manufacturing externalization has already been successfully scaled and tech‑transferred (4000L) .
- Execution signals: 2024 manufacturing goals were fully achieved, a positive indicator for Technical Operations leadership; but weaker FY2024 revenue and larger net loss, plus low TSR, reflect near‑term financial pressure, which could impact equity value of awards and increase insider liquidity incentives once vesting occurs—monitor Form 4 filings for any selling trends (individual CTO holdings not disclosed in proxy) .
- Governance and pay design: High say‑on‑pay support and peer‑benchmarked programs indicate stable compensation governance; no tax gross‑ups and double‑trigger CIC terms reduce shareholder‑unfriendly optics .