Raymond Pratt
SavaraAbout Raymond Pratt
Raymond Pratt, M.D., is Savara’s Chief Medical Officer, serving since November 2022; he is 74 years old as of April 1, 2025 and holds an M.D. from the University of Illinois College of Medicine with a nephrology fellowship at Walter Reed AMC, followed by academic roles at Johns Hopkins (Assistant Professor, Medicine/Nephrology) and multiple senior clinical development leadership roles in biopharma . Company pay-versus-performance disclosures note Savara’s 2022 net loss of $38.2 million and a value of initial fixed $100 investment at $125 for 2022 (indicative of TSR), while the company emphasizes that executive pay is not directly aligned to net income due to its clinical-stage lifecycle and focus on development milestones .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Rockwell Medical (NASDAQ: RMTI) | Chief Medical Officer | 2012–2019 | Led clinical medicine and development in renal indications . |
| Rockwell Medical (NASDAQ: RMTI) | Chief Development Officer | 2019–2022 | Directed development strategy post-CMO tenure . |
| Shire PLC (now Takeda) | VP R&D; Scientific Leader (Emerging Business & Renal); VP Global Clinical Medicine & Affairs; Head U.S. Clinical Development | Not disclosed | Senior R&D and clinical leadership across multiple business units . |
| Eisai Medical Research | Senior Director, Clinical R&D; Head CNS & Internal Medicine Clinical Development | Nine years | Led CNS/IM clinical development for nine years . |
| Walter Reed Army Medical Center | Nephrology practice; Assistant Chief of Nephrology; Director of Dialysis Services | 1983–1985 | Operational leadership in nephrology services . |
| Johns Hopkins School of Medicine | Physician scientist training grant; James Shannon NIH New Investigator award | Not disclosed | Early-career research recognition . |
| Johns Hopkins (Dept. of Medicine & Nephrology) | Assistant Professor | 1989–1993 | Academic leadership in medicine and nephrology . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| XORTX Therapeutics (NASDAQ: XRTX) | Director | Since Dec 2021 | Board oversight at kidney disease-focused biotech . |
Fixed Compensation
| Metric | 2022 | 2023 (Targets) |
|---|---|---|
| Base Salary ($) | $470,000 | $470,000 (implied by 40% target bonus of $188,000) |
| Target Bonus (%) | 40% | 40% |
| Target Bonus ($) | $216,300 (full-year target; pro-rated for 2022 tenure) | $188,000 |
| Actual Bonus Paid ($) | $26,268 (pro-rated) | Not disclosed |
Performance Compensation
| Metric | Weighting | 2022 Target | 2022 Actual | 2022 Payout | Vesting/Timing |
|---|---|---|---|---|---|
| Activate all IMPALA-2 targeted sites by end of May 2022 | 10% | Milestone completion | Achieved (companywide goals met at 100%) | 100% of corporate component | Annual cash incentive |
| Achieve 50% IMPALA-2 enrollment by end of July 2022 | 25% | Milestone completion | Achieved | 100% | Annual cash incentive |
| On-track to full enrollment on planned timeline (year-end) | 25% | Milestone completion | Achieved | 100% | Annual cash incentive |
| Identify second drug product manufacturing site & two release testing sites (year-end) | 10% | Milestone completion | Achieved | 100% | Annual cash incentive |
| Establish GEMA drug substance process at 2nd site (year-end) | 10% | Milestone completion | Achieved | 100% | Annual cash incentive |
| Launch U.S. aPAP market awareness campaign by Q3 2022 | 5% | Milestone completion | Achieved | 100% | Annual cash incentive |
| Initiate regulatory preparedness work by Q2 2022 | 5% | Milestone completion | Achieved | 100% | Annual cash incentive |
| Operate within 5% of 2022 approved budget | 5% | Budget adherence | Achieved | 100% | Annual cash incentive |
| Complete debt refinancing by Q2 2022 | 5% | Milestone completion | Achieved | 100% | Annual cash incentive |
Equity Awards (Grants and Vesting)
| Grant Date | Award Type | Shares/Units | Exercise Price ($/sh) | Grant-Date Fair Value ($) | Vesting |
|---|---|---|---|---|---|
| 11/10/2022 | Stock Options | 375,000 | $1.51 | $392,300.63 | 16 equal quarterly installments from 11/10/2022 |
| 11/10/2022 | RSUs | 150,000 | N/A | $214,500 | Full vest on 11/10/2024 |
| FY 2022 Outstanding (as of 12/31/2022) | Shares Not Vested | Market Value ($) |
|---|---|---|
| RSUs (11/10/2022 grant) | 150,000 | $155,000 (based on 12/31/2022 price) |
Equity Ownership & Alignment
| Metric | Apr 10, 2023 | Apr 8, 2024 |
|---|---|---|
| Shares Beneficially Owned | 50,375 (<1%) | 153,125 (<1%) |
| Within 60 Days: options/RSUs exercisable/vesting | 46,875 | 143,125 |
- Hedging and pledging of Savara securities are prohibited under company policy, supporting alignment and reducing financing risk; margin purchases are also prohibited .
Employment Terms
| Situation | Cash Severance | Health Benefits | Equity Acceleration | Bonus Treatment |
|---|---|---|---|---|
| Termination without cause / resignation for good reason (outside change-of-control period) | 12 months base salary | COBRA reimbursements up to 12 months | Accelerated vesting equal to 12 months of would-have-vested equity | Pro-rated portion of target bonus for days employed |
| Death or disability (outside change-of-control period) | 12 months base salary | COBRA reimbursements up to 12 months | Same as above | Pro-rated target bonus |
| Termination without cause / resignation for good reason (during change-of-control period) | 18 months base salary | Taxable lump sum equal to 18 months COBRA premiums | 100% acceleration of equity awards | 100% of target bonus + pro-rated target bonus |
| Single-trigger CIC benefits | Not provided by the Company |
Quantitative Change-in-Control Economics (as of 12/31/2022)
| Component | Qualifying Termination (Outside CIC) | Qualifying Termination (During CIC) |
|---|---|---|
| Cash Severance (Salary + Bonus) ($) | $496,268 | $919,268 |
| Health Insurance ($) | $21,408 | $32,112 |
| Accelerated Equity ($) | $11,250 | $277,500 |
| Accrued Vacation ($) | — | — |
| Total ($) | $528,926 | $1,228,880 |
Compensation Structure Analysis
- 2022 pay mix shows material equity grants at hire (375k options, 150k RSUs), consistent with retention emphasis and long-term value alignment; annual cash bonus for 2022 was pro-rated and paid against corporate goals met at 100% .
- The compensation program relies on milestone-based operational targets (trial enrollment, manufacturing readiness, regulatory preparedness, capital management), with discretionary elements rather than formulaic revenue/EBITDA metrics given clinical-stage status .
- Company policies prohibit option repricing without shareholder approval and include no tax gross-ups in the equity plan, limiting shareholder-unfriendly practices .
Say-On-Pay & Peer Group
- 2022 say-on-pay approval: ~92% support, indicating strong shareholder acceptance of the program at that time .
- Peer benchmarking uses life sciences survey data and evolving biotech peer groups to calibrate competitiveness; peer group was refined in 2021–2022 to better match market cap and organizational complexity .
Investment Implications
- Alignment: Prohibition on hedging/pledging, plus sizable unvested equity from late-2022 grants, support alignment and retention incentives through 2024 vest events .
- Retention risk: Severance includes 12–18 months salary and bonus components with equity acceleration, reducing voluntary departure risk; the absence of single-trigger CIC mitigates windfall risk while ensuring protection upon double-trigger CIC .
- Performance signaling: Bonus metrics emphasize execution milestones (trial progress, manufacturing, regulatory readiness, capital discipline); 2022 companywide goals at 100% support execution credibility, though financial outcomes (net loss) are not used for pay calibration per disclosures .
- Trading signals: Upcoming vesting cliffs (RSUs on 11/10/2024) can create potential insider selling windows; however, insider trading policy constraints and blackout periods apply, and pledging is banned, moderating selling pressure risk .