Padmanabh Bhatt
SUPERNUS PHARMACEUTICALSAbout Padmanabh Bhatt
Padmanabh P. Bhatt, Ph.D., is Senior Vice President, Intellectual Property and Chief Scientific Officer at Supernus (SUPN), a role he has held since March 2012; he previously served as Vice President of Pharmaceutical Sciences from 2005, with earlier leadership roles at Shire Laboratories, Point Biomedical, ALZA (J&J), Dow Corning, and Hercon Laboratories . He holds a B.Pharm. and M.Pharm. from the University of Bombay and M.S./Ph.D. in Pharmaceutical Chemistry from the University of Kansas . Bhatt is 67 years old and listed among current executive officers in 2025 . Compensation design ties a substantial portion of his pay to equity and performance share units (PSUs) with objectives around IP creation, discovery platform milestones, and program development, reflecting pay-for-performance alignment .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Supernus Pharmaceuticals | SVP, Intellectual Property & Chief Scientific Officer | 2012–present | Lead IP strategy and scientific leadership; drive discovery platform/program execution |
| Supernus Pharmaceuticals | VP, Pharmaceutical Sciences | 2005–2012 | Built internal formulation/technical development capabilities |
| Shire Laboratories Inc. | VP, Advanced Drug Delivery | 2003–2005 | Led advanced delivery initiatives supporting portfolio development |
| Point Biomedical Corporation | VP R&D and CTO | 2001–2003 | Oversaw R&D and technology; advanced product development |
| ALZA Corporation (J&J) | Product Development Manager → Director, Technical Development | 1996–2001 | Directed technical development for drug delivery platforms |
| Dow Corning Corporation | Research Specialist & Group Leader, Novel Drug Delivery | 1992–1996 | Led novel drug delivery research teams |
| Hercon Laboratories | Senior Scientist | 1989–1992 | Contributed to pharmaceutical science and delivery technologies |
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | 415,200 | 427,700 | 441,034 |
| Target Bonus % of Salary | 35% (company 60% / individual 40%) | Not disclosed | Unchanged vs 2023 (no % change) |
| Actual Bonus Paid ($) | 140,973 | 163,165 | 163,434 |
| All Other Compensation ($) | 37,963 | 37,546 | 53,459 (incl. $300 membership reimbursement) |
| Total Compensation ($) | 1,120,759 | 1,468,211 | 1,552,229 |
Additional base salary changes:
| Name | 2023 Base ($) | 2024 Base ($) | % Change |
|---|---|---|---|
| Padmanabh P. Bhatt | 427,700 | 440,500 | 3.0% |
Performance Compensation
Annual Cash Bonus Structure
| Element | 2022 Weighting | Notes |
|---|---|---|
| Company performance element | 60% | Corporate Objectives include net sales/operating income growth and R&D milestones |
| Individual performance element | 40% | Objectives tailored per executive role |
2021 structure matched the same weighting for Bhatt (35% target; 60/40 split) . In 2024, targets did not increase vs 2023 across NEOs .
Equity Awards Granted (by Year)
| Grant Date | Type | Shares | Exercise/Base Price | Grant-Date Fair Value ($) | Vesting |
|---|---|---|---|---|---|
| 2/22/2024 | Stock Options | 20,000 | $27.94 | 345,803 | 25% annually over 4 years |
| 2/22/2024 | RSUs | 5,000 | — | 139,700 | 25% annually over 4 years |
| 6/24/2024 | PSUs | 5,000 | — | 134,550 | Vests upon achieving specific individual objectives; performance periods ≤10 years |
| 2/23/2023 | Stock Options | 20,000 | $38.60 | 476,800 | 25% annually over 4 years |
| 2/23/2023 | RSUs | 5,000 | — | 193,000 | 25% annually over 4 years |
| 6/12/2023 | PSUs | 5,000 | — | 170,000 | Vests upon achieving specific individual objectives; performance periods ≤10 years |
PSU metrics set on 6/24/2024 for Bhatt include: finalize an Integrated Development Plan in 2024; file a new patent application on a new chemical entity in 2027; secure issuance of a new patent on a new chemical entity by 2028 . PSU metrics set on 6/12/2023 included filing new patent applications on derivatives by 2025 and securing issuance for manufacturing by 2026; Bhatt’s objective to file a new patent for a new chemical entity before 2024 was achieved on April 3, 2023 .
Option Exercises and Stock Vested (realization)
| Metric (2022 calendar year, reported in 2023 proxy) | Quantity | Value ($) |
|---|---|---|
| Shares acquired on option exercise | 12,500 | 334,602 |
| Shares acquired on vesting (stock awards) | 750 | 22,583 |
Equity Ownership & Alignment
Beneficial Ownership
| As-of Date | Beneficial Shares | Percent of Common | Notes |
|---|---|---|---|
| April 22, 2025 | 110,454 | <1% | Includes 97,750 shares via options exercisable within 60 days |
| April 18, 2024 | 121,815 | <1% | — |
| April 17, 2023 | 193,997 | <1% | — |
- Insider policy prohibits hedging and any pledging or margin accounts for directors, officers, and employees, reducing alignment risk from financial engineering .
- Stock ownership guidelines apply to CEO (3x salary) and directors; there are no ownership requirements for other NEOs, including Bhatt .
Outstanding Equity Awards (as of Dec 31, 2023)
| Grant | Exercisable (#) | Unexercisable (#) | Exercise Price ($) | Expiration |
|---|---|---|---|---|
| Options | 5,000 | — | 9.13 | 3/3/2025 |
| Options | 40,000 | — | 12.98 | 3/1/2026 |
| Options | 40,000 | — | 25.30 | 2/24/2027 |
| Options | 30,000 | — | 39.40 | 2/14/2028 |
| Options | 35,000 | — | 36.75 | 2/22/2029 |
| Options | 26,250 | 8,750 | 23.99 | 2/21/2030 |
| Options | 8,500 | 8,500 | 29.61 | 2/19/2031 |
| Options | 4,500 | 13,500 | 32.20 | 2/22/2032 |
| Options | — | 20,000 | 38.60 | 2/23/2033 |
| RSUs (not vested) | 2,250 | — | — | MV $65,115 |
| RSUs (not vested) | 1,500 | — | — | MV $43,410 |
Vesting schedules: options vest in equal annual increments over 4 years; RSUs vest 25% annually over 4 years; PSUs vest upon achievement of specified performance objectives (objective performance periods must expire within ≤10 years) .
Employment Terms
- Standard Executive Retention Agreement applies; if terminated without cause or for good reason prior to a change in control, Bhatt is entitled to base salary and health benefits for 12 months . If terminated on the date of, or within 12 months after, a change in control without cause or for good reason, he is entitled to base salary and health benefits for 12 months, a lump-sum payment equal to his most recent annual bonus, and full vesting acceleration of stock-based compensation, with exercisability per original award terms (double-trigger structure) .
- Offer letter term: Bhatt is entitled to six months of severance pay if a restructuring eliminates his position .
- Clawback policy: mandatory recovery of erroneously awarded incentive compensation for the 3-year lookback preceding a required accounting restatement; none required in 2024 .
- Anti-hedging and anti-pledging policy: prohibits hedging/monetization transactions and pledging/margin accounts for all directors, officers, and employees .
- Policy against repricing stock options without shareholder approval .
- Ownership guidelines: apply to CEO (3x salary) and directors; no guidelines for other NEOs including Bhatt .
Investment Implications
- Alignment: Significant equity mix (options, RSUs, PSUs) with PSU objectives tied to IP creation and development milestones suggests strong alignment with long-term value creation; RSUs provide retention utility while PSUs link payout to execution on discovery platform/patents .
- Insider selling pressure: Bhatt exercised 12,500 options in 2022 (value $334,602) and had modest vesting; near-term option expirations begin in 2025 (9.13 strike), with staggered expiries through 2033, which can create periodic selling windows but are broadly distributed, mitigating concentrated pressure .
- Ownership and pledging risk: Beneficial ownership is <1% and policies prohibit pledging and hedging; combined with no NEO ownership requirement, alignment relies on active equity grants rather than large personal holdings .
- Retention and change-of-control economics: Standard severance (12 months) and double-trigger acceleration under change of control could incentivize transaction neutrality but does not present outsized golden parachute risk; Bhatt’s six-month specific severance for restructuring provides baseline protection .
- Execution risk: PSU objectives are milestone-heavy (patent filings/issuance, program IP strategies), making payouts sensitive to R&D/IP execution; achievement of the 2023 filing objective demonstrates progress, but multi-year objectives carry scientific and regulatory risk .