Seshadri Neervannan
About Seshadri Neervannan
Seshadri Neervannan, Ph.D., is Chief Operating Officer of Tarsus Pharmaceuticals (TARS) since July 2020; age 56 as of April 15, 2025. He holds a B.S. in Pharmacy (with Honors) from BITS Pilani and a Ph.D. (with Honors) in Pharmaceutical Chemistry from the University of Kansas; he also serves on the board of Iolyx Therapeutics since 2020 . Business performance context for pay: Tarsus net product sales rose to $180.1 million in 2024 from $14.7 million in 2023, while 2024 TSR measured 246.09 versus 93.47 for the NASDAQ Biotech Index; net losses were $116 million (2024), $136 million (2023), $62 million (2022) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Tarsus Pharmaceuticals | Chief Operating Officer | 2020–present | Scaled operations through XDEMVY launch and commercial ramp |
| Allergan, Inc. | SVP Global Pharmaceutical Development | 2015–2020 | Led global development; prior VP Pharm Development 2007–2015 |
| Amgen Inc. | Director, Pharmaceutics R&D | 1999–2007 | Directed R&D in biopharma formulation |
| Bristol-Myers Squibb Pharmaceutical Research Institute | Sr. Research Investigator | 1994–1999 | Early-stage pharmaceutics research |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Iolyx Therapeutics | Director | 2020–present | Board service concurrent with Tarsus role |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Salary ($) | $500,000 | $527,333 |
| All Other Compensation ($) | $13,200 | $53,699 |
| Total ($) | $1,741,918 | $3,194,689 |
| Base Salary Progression | Amount |
|---|---|
| March 1, 2023 Base Salary | $504,000 |
| March 1, 2024 Base Salary | $532,000 (+5.6%) |
| Annual Incentive Target | Detail |
|---|---|
| Target Bonus % of Base | 45% (NEOs incl. Neervannan) |
| 2024 Corporate Performance Modifier | 130% |
| 2024 Bonus Paid ($) | $311,300 |
Performance Compensation
| Metric (2024 Plan) | Weighting | Target | Achievement | Payout Contribution (Score) |
|---|---|---|---|---|
| XDEMVY net revenue and patients served | 30% | $116M net revenue | 140% | 42.0% |
| Contract coverage (Commercial + Part D) | 20% | 80% lives covered | 114% | 22.8% |
| ECP engagement/ATU awareness | 7.5% | ≥10,000 ECPs | 120% | 9.0% |
| Phase 4 data dissemination | 7.5% | N/A | 88% | 6.6% |
| Maintain sufficient cash resources | 10% | N/A | 100% | 10.5% |
| Strategy for select ex-US TP-03 territories | 5% | N/A | 100% | 5.0% |
| Management capability/culture/compliance | 10% | N/A | 100% | 10.0% |
| Pipeline development strategy | 10% | N/A | 100% | 10.0% |
| Stretch – Phase 2b Rosacea enrollment | 5% | Initiate | 0% | 0% |
| Stretch – Complete X program enrollment | 5% | Complete | 0% | 0% |
| Stretch – BD efforts | 5% | Proceed | 100% | 5.0% |
| Stretch – Raise ≥$100M net proceeds | 10% | $100M | 100% | 10.0% |
| Total | 100% | — | 130% | 130% |
| 2024 Equity Grants (Refresh) | RSUs (#) | RSU Grant-Date FV ($) | Options (#) | Option Exercise Price ($) | Option Grant-Date FV ($) | Vesting |
|---|---|---|---|---|---|---|
| Mar 7, 2024 awards | 32,079 | $1,168,959 | 47,500 | $35.50 | $1,133,398 | RSUs: equal annual on Mar 15, 2025–2028; Options: 25% on Mar 7, 2025, then monthly over 36 months |
Equity Ownership & Alignment
| Beneficial Ownership (as of Mar 31, 2025) | Shares | % Outstanding |
|---|---|---|
| Total Beneficial Ownership | 462,970 | 1.09% |
| Direct Shares | 79,682 | — |
| Options Exercisable within 60 days | 383,288 | — |
| Outstanding Unexercised Options (Dec 31, 2024) | Exercisable (#) | Unexercisable (#) | Exercise Price ($) | Expiration |
|---|---|---|---|---|
| Grant (2016/2020 Plans) | 183,741 | — | 2.01 | 7/12/2030 |
| 43,114 | — | 10.99 | 9/24/2030 | |
| 60,217 | 1,282 | 47.25 | 1/6/2031 | |
| 47,779 | 21,719 | 19.59 | 3/8/2032 | |
| 21,050 | 27,066 | 15.00 | 3/7/2033 | |
| Mar 7, 2024 Option | — | 47,500 | 35.50 | 3/6/2034 |
| Unvested RSUs (Dec 31, 2024) | Units (#) | Market Value ($) |
|---|---|---|
| Grant (prior years) | 10,194 | $564,442 |
| Grant (prior years) | 24,444 | $1,353,464 |
| Mar 7, 2024 RSU | 32,079 | $1,776,214 |
- Hedging and pledging in company stock are prohibited for executives and directors under the insider trading policy; short sales and margin pledging are also prohibited .
- 2024 stock awards vested: 13,245 RSUs; none of the NEOs (including Neervannan) exercised options in 2024 .
Employment Terms
| Term | Details |
|---|---|
| Start Date | COO since July 2020 |
| Employment Agreement | Offer letter dated June 4, 2020 (filed as exhibit); employment is at-will per proxy |
| Severance (Qualifying Termination, apart from CIC) | Cash severance $532,000; company-paid health premiums $29,021 |
| Severance (in connection with CIC; double-trigger) | Cash severance $1,010,800; health premiums $29,021; accelerated vesting of all outstanding equity valued at $6,518,115 (based on $55.37 stock price at 12/31/24) |
| CIC Framework | Double-trigger: requires both change in control and qualifying termination; includes pro-rated target bonus + 100% of target bonus (non-PEOs) |
| Clawback | 2023 policy to recover erroneously awarded incentive comp upon required financial restatement; covers prior three fiscal years |
| Perquisites | Generally no material perqs beyond broad-based benefits; 401(k) plan with 4% match up to IRS compensation cap; matches vest immediately |
| Hedging/Pledging | Prohibited for executives and directors (no hedging, no pledging, no short sales) |
| Tax Gross-Ups | None provided (no excise tax gross-ups) |
| Stock Ownership Guidelines | Not disclosed in proxy; beneficial ownership presented above |
Note: Attempt to retrieve Form 4 insider transactions via insider-trades skill encountered authorization error; proxy tables indicate no option exercises in 2024 and RSUs vested as shown .
Investment Implications
- Alignment: Pay mix emphasizes long-term equity (50% options, 50% RSUs) with four-year vesting; hedging and pledging bans enhance alignment. March 2024 grants of 32,079 RSUs and 47,500 options at $35.50 support multi-year retention and upside participation .
- Retention Risk: Significant unvested RSUs and unexercisable options, plus CIC acceleration valued at $6.52 million, and cash severance ($561k non-CIC; $1.01m CIC) reduce near-term departure risk; monthly option vesting post-3/7/2025 and annual RSU vests on 3/15 create predictable supply overhang dates to monitor .
- Trading Signals: 2024 bonus paid at 130% tied to exceeding revenue and coverage goals (net product sales target $116m vs actual $180.1m), indicating operational outperformance; none of the NEOs exercised options in 2024, modest RSU vestings suggest limited discretionary selling pressure historically .
- Execution Risk: Despite strong commercial ramp, Tarsus reported a $116m net loss in 2024, and equity awards are material; monitor margin progression and pipeline milestones since cash-based and strategic objectives are embedded in incentive design .