Jeffrey Farrow
About Jeffrey Farrow
Jeffrey Farrow, age 63, serves as Chief Financial Officer and Chief Strategy Officer of Tarsus Pharmaceuticals since April 2023; he holds a B.A. in business administration (corporate finance) from California State University–Fullerton and is a certified public accountant (inactive) . During his tenure, TARS reported Total Shareholder Return of 246.09 in 2024, with Product Sales, Net of $180 million and Net Loss of $(116) million, highlighting commercialization momentum of XDEMVY and scale-up in operating investments . He previously led finance organizations through multiple product launches and M&A outcomes, including the regulatory approval and commercial launch of Oxbryta at Global Blood Therapeutics and CFO roles at ZS Pharma (acquired by AstraZeneca), Hyperion (acquired by Horizon), Renovis (acquired by Evotec), and finance leadership at Evotec and KPMG audit .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Global Blood Therapeutics, Inc. | Chief Financial Officer | 2016–2022 | Part of team achieving regulatory approval and commercial launch of Oxbryta; company acquired by Pfizer in Dec 2022 |
| ZS Pharma, Inc. | Chief Financial Officer | Pre-2015–2015 | Company acquired by AstraZeneca in Dec 2015 |
| Hyperion Therapeutics, Inc. | Chief Financial Officer | 2010–2015 | Company acquired by Horizon Therapeutics in May 2015 |
| Evotec AG | Vice President, Finance | Prior to Renovis role | Drug discovery/development company; finance leadership |
| Renovis, Inc. | VP Finance & Chief Accounting Officer | Pre-Evotec acquisition | Acquired by Evotec AG |
| KPMG LLP | Audit Practice | 7 years (early career) | Public company audit and controls experience |
External Roles
| Organization | Role | Years |
|---|---|---|
| Clover Biotherapeutics | Board Member | Since Sep 2021 |
Fixed Compensation
Multi-year compensation (as disclosed):
| Metric | 2023 | 2024 |
|---|---|---|
| Salary ($) | 343,751 | 520,833 |
| Bonus ($) | 100,000 (signing) | — |
| Stock Awards ($, grant-date fair value) | 1,678,310 | 1,168,959 |
| Option Awards ($, grant-date fair value) | 1,590,572 | 1,133,398 |
| Non-Equity Incentive Plan Compensation ($) | 241,200 | 307,200 |
| All Other Compensation ($) | 37,997 | 102,536 (incl. $13,408 401(k) match; $52,249 temporary living) |
| Total ($) | 3,991,830 | 3,232,926 |
Base salary adjustments and target bonus:
- Base salary increased from $500,000 (3/1/2023) to $525,000 (3/1/2024), +5.0% .
- Target bonus increased from 40% to 45% beginning in fiscal 2024 to better align with market .
Performance Compensation
Annual cash incentive program parameters and 2024 corporate metrics:
| Named Executive Officer | 2024 Year-End Base Salary ($) | Annual Incentive Target (%) | Target Amount ($) | Performance Modifier (%) | Amount Awarded ($) |
|---|---|---|---|---|---|
| Jeffrey Farrow | 525,000 | 45% | 236,250 | 130% | 307,200 |
- 2024 payout determination: Corporate achievement 130% overall; Farrow’s bonus structure weighted 90% corporate and 10% individual performance .
2024 corporate goals and achievement:
| Category | Metric | Weighting | Target/Description | Achievement | Score |
|---|---|---|---|---|---|
| Launch XDEMVY Successfully | Generate XDEMVY net revenue | 30% | $116M net revenue | 140% | 42.0% |
| Launch XDEMVY Successfully | Commercial + Part D coverage | 20% | 80% lives covered | 114% | 22.8% |
| Awareness | Engage ≥10K ECPs; ATU awareness ↑ | 7.5% | Engagement threshold | 120% | 9.0% |
| Awareness | Disseminate Phase 4 data/publications | 7.5% | Publication cadence | 88% | 6.6% |
| Monetize | Maintain sufficient cash resources | 10% | Liquidity thresholds | 100% | 10.5% |
| Monetize | Formalize ex-US TP-03 territories | 5% | Strategy milestones | 100% | 5.0% |
| Transform | Advance management capability/culture | 10% | HR/Compliance objectives | 100% | 10.0% |
| Transform | Formalize pipeline strategy | 10% | R&D prioritization | 100% | 10.0% |
| Stretch | Phase 2b Rosacea enrollment initiate | 5% | Enrollment start | 0% | 0% |
| Stretch | Complete X enrollment on additional program | 5% | Enrollment complete | 0% | 0% |
| Stretch | BD efforts | 5% | Transactions progress | 100% | 5.0% |
| Stretch | Opportunistically raise ≥$100M net proceeds | 10% | Capital raises | 100% | 10.0% |
| Total | 100% | 130% | 130% |
Long-term incentives and pay mix:
- March 2024 LTI awards were targeted at ~70th percentile vs compensation peer group, split 50% options and 50% RSUs; option sizing used a Black-Scholes discount and 40-day trailing average, RSUs used 40-day trailing average .
- Farrow’s March 2024 LTI awards: RSUs $937,650 (32,079 units) and options $937,650 (47,500 options) .
Equity Ownership & Alignment
Beneficial ownership as of March 31, 2025:
| Holder | Shares Beneficially Owned | % of Outstanding |
|---|---|---|
| Jeffrey Farrow | 121,387 (22,431 direct; 98,956 options exercisable within 60 days) | <1% of 41,995,537 outstanding |
Outstanding equity awards at FY 2024 year-end (Dec 31, 2024):
| Instrument | Status | Quantity | Exercise Price | Expiration | Vesting / Notes | Market/Value Reference |
|---|---|---|---|---|---|---|
| Stock Options | Exercisable | 68,081 | $14.62 | 4/23/2033 | Initial Farrow grant; 25% vested on 4/24/2024; remaining monthly over 36 months | — |
| Stock Options | Unexercisable | 95,316 | $14.62 | 4/23/2033 | Same schedule | — |
| Stock Options | Unexercisable | 47,500 | $35.50 | 3/6/2034 | 25% vests 3/7/2025; remaining monthly over 36 months thereafter | — |
| RSUs | Unvested | 83,644 | — | — | 25% vest each of 6/15/2024, 6/15/2025, 6/15/2026, 6/15/2027 | $4,631,368 (at $55.37) |
| RSUs | Unvested | 32,079 | — | — | 25% vest each of 3/15/2025, 3/15/2026, 3/15/2027, 3/15/2028 | $1,776,214 (at $55.37) |
2024 stock vested and realized value:
| Name | RSUs Vested (Shares) | Value Realized ($) |
|---|---|---|
| Jeffrey Farrow | 27,881 | 804,088 |
Ownership alignment and policies:
- Hedging and pledging of company stock are prohibited for NEOs and directors .
- No defined benefit or nonqualified deferred compensation plans; NEOs participate in standard employee programs; no tax gross-ups; no option repricing without shareholder approval .
Employment Terms
Appointment and offer letter:
- Appointed CFO & Chief Strategy Officer effective April 24, 2023; initial base salary $500,000; signing bonus $100,000 (paid in two $50,000 tranches), target annual bonus 40%; initial RSU target $1.5M (vesting 25% on each 6/15/2024–2027) and option target $1.5M (FMV exercise) .
Current severance and change-in-control (CIC) arrangements:
| Scenario (Qualifying Termination) | Cash Severance | Health Coverage | Bonus Treatment | Equity Acceleration |
|---|---|---|---|---|
| Apart from CIC | 12 months base salary ($525,000) | Company-paid COBRA during severance term ($23,279 estimate) | None | None |
| In connection with CIC (double-trigger) | 12 months base + lump sum of (i) prorated target bonus for year of termination and (ii) 100% of target bonus ($997,500 cash total in modeled case) | Company-paid COBRA ($23,279) | As noted | Accelerated vesting of all outstanding equity ($11,235,535 modeled value at $55.37/share) |
- “Cause,” “Good Reason,” and CIC double-trigger mechanics are defined; release and restrictive covenants required to receive benefits .
- 2024 modeled totals upon CIC termination (as of 12/31/2024): $12,256,314 (cash severance $997,500; health $23,279; equity acceleration $11,235,535) .
Investment Implications
- Pay-for-performance alignment: Farrow’s 2024 annual bonus (130% of target) was driven by corporate goals tied to XDEMVY commercialization, access, awareness, liquidity, and capital raising; his incentive structure allocates 90% to corporate outcomes, reinforcing team execution and commercial KPIs .
- Retention and selling pressure: Significant unvested equity remains (RSUs 83,644 + 32,079; substantial unexercisable options), with scheduled vesting dates through 2028; 2024 saw RSU vesting but no option exercises by NEOs, reducing near-term forced selling signals typically associated with option exercise liquidity needs .
- Change-in-control economics: Under a CIC double-trigger, Farrow would receive accelerated vesting of all outstanding equity and cash totaling ~$12.26 million in the 2024 model, indicating strong alignment to strategic outcomes but meaningful dilution and payout implications in M&A scenarios .
- Governance and risk mitigants: Clawback policy tied to restatements, prohibition on hedging/pledging, no excise tax gross-ups, and market-standard severance multiples indicate a governance-conscious compensation framework that limits shareholder-unfriendly practices .
Appendix: Additional 2024 LTI Details
| Award | Grant Date | Shares/Units | Exercise/Base Price | Grant-Date Fair Value ($) | Vesting |
|---|---|---|---|---|---|
| Stock Options | 3/7/2024 | 47,500 | $35.50 | 1,133,398 | 25% on 3/7/2025; monthly thereafter for 36 months |
| RSUs | 3/7/2024 | 32,079 | — | 1,168,959 | 25% each 3/15/2025–2028 |
Notes: All NEO RSUs and options fully accelerate upon double-trigger CIC termination; the market value reference used in the proxy for equity is $55.37 (12/31/2024 close) .