Christopher Murphy
About Christopher Murphy
Christopher M. Murphy, age 41, serves as Third Harmonic Bio’s Chief Financial and Business Officer (principal financial officer) since January 4, 2024; he holds a B.B.A. in Finance from the University of Notre Dame . Prior roles include senior leadership at Horizon Therapeutics PLC (business development and commercial operations) and investment banking at JMP Securities; earlier, he worked at Navigant Consulting . At THRD, 2024 annual cash bonuses for executives were based on development, scientific, and strategic milestones, with a payout level of 95% of target (Murphy’s actual bonus: $185,327) . The company did not disclose TSR, revenue growth, or EBITDA growth metrics tied to Murphy’s compensation; incentive metrics were operational (development/scientific/strategic) rather than market-based .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Horizon Therapeutics PLC | VP, Business Development; Group VP, Corporate Development; Group VP, Operations (Inflammation BU); Group VP, Commercial Operations & Analytics | 2014–2020 | Helped transform Horizon from a ~$0.8B market cap specialty pharma to a highly profitable rare disease company acquired by Amgen for $28B; led strategic transactions, integrations, and commercial operations across market access, sales/marketing ops, and analytics . |
| JMP Securities LLC | Investment Banking, Life Sciences (Director) | 2008–2014 | Executed capital markets and advisory mandates for biopharma; progressed to Director . |
| Navigant Consulting, Inc. | Consultant, Litigation & Investigation | 2006–2008 | Analytical and investigative support for complex matters . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| None disclosed | — | — | No public company directorships or committee roles disclosed in filings reviewed . |
Fixed Compensation
| Metric | FY 2024 | Post-Dissolution Term (2025–2028) |
|---|---|---|
| Base Salary ($) | $487,702 (pro rata of $495,000 annual) | $50,000 per year during the three-year Term following dissolution effective date |
| Target Bonus % | 40% of annualized base salary (per Offer Letter) | Not specified; instead, fixed end-of-term cash bonus |
| Actual Bonus Paid ($) | $185,327 | $100,000 end-of-term cash bonus, contingent on continued service through end of Term |
Performance Compensation
Annual Cash Incentive (FY 2024)
| Metric | Target | Actual | Payout (% of Target) | Vesting | Period |
|---|---|---|---|---|---|
| Corporate objectives (development, scientific, strategic milestones) | 40% of annualized base salary | $185,327 | 95% of target | Cash (N/A) | FY 2024 |
Equity Awards (New Hire Grant)
| Grant Date | Instrument | Shares Granted | Exercise Price ($) | Grant-Date Fair Value ($) | Vesting Schedule | Expiration |
|---|---|---|---|---|---|---|
| 1/5/2024 | Stock option | 410,000 | $10.89 | $4,464,900 | 1/4 vests on 1/5/2025, then 1/48 monthly thereafter, subject to continued service | 1/5/2034 |
Equity grant timing disclosure (Item 402(x)): option grants to Murphy and the CEO were made on 1/5/2024 with a 1.9% change in closing market price around the MNPI disclosure window; exercise price $10.89; grant-date fair value for Murphy $4,464,900 .
Equity Ownership & Alignment
Beneficial Ownership Snapshot (As of March 31, 2025)
| Metric | Mar 31, 2025 |
|---|---|
| Total beneficial ownership (shares) | 148,332 (all from options exercisable within 60 days) |
| Ownership % of outstanding | <1% |
| Anti-hedging policy | Company prohibits hedging or monetization transactions (e.g., zero-cost collars, forwards, exchange funds) for officers and employees |
| Pledging | No explicit anti-pledging policy disclosure and no pledged shares indicated for Murphy in ownership table |
Option Holdings Snapshot (As of December 31, 2024)
| Metric | Dec 31, 2024 |
|---|---|
| Unexercisable options (#) | 410,000 unexercisable (new hire grant) |
| Exercise price ($) | $10.89 |
| Expiration | 1/5/2034 |
| Closing stock price at FY-end ($) | $10.29 (Nasdaq quote used for equity valuation) |
Employment Terms
- Offer Letter (12/19/2023): At-will; annualized base salary $495,000; annual discretionary bonus up to 40% of base; option to purchase 410,000 shares; Murphy entered into Company’s standard Indemnity Agreement and Change in Control and Severance Agreement (forms incorporated by reference to S-1 exhibits) .
- Executive Officer Severance Policy: Board-approved policy covering officers (including named executive officers); detailed COC terms disclosed for CEO; officers are beneficiaries via participation agreements; all severance/vesting acceleration subject to execution of a general release .
- Compensation Recovery Policy (Rule 10D-1): Adopted June 6, 2023; enables recovery of incentive-based compensation from current/former executive officers following accounting restatements, irrespective of fault .
- Insider Trading Policy: Applies to all employees, contractors, directors and officers; prohibits hedging/monetization transactions .
- Dissolution Compensation (7/16/2025 Board approval): Murphy to serve through the three-year Term after dissolution; base salary $50,000 per year and $100,000 cash bonus at end of Term, contingent on continued service .
- Vesting Terms (new hire option): 1/4 on 1/5/2025; 1/48 monthly thereafter, subject to continued service .
Investment Implications
- Pay-for-performance: 2024 bonus paid at 95% of target against operational (development/scientific/strategic) objectives, indicating strong internal execution against plan; however, incentives are not tied to market-based metrics like TSR or revenue growth, limiting direct alignment to shareholder returns .
- Insider selling pressure: Murphy’s exercisable options were 148,332 within 60 days of March 31, 2025; with the FY-end stock price ($10.29) below his strike ($10.89), options were underwater at 12/31/2024, tempering near-term exercise/monetization incentives pending price direction .
- Alignment and risk controls: Anti-hedging policy and a robust clawback framework strengthen governance and compensation integrity; absence of disclosed stock ownership guidelines and pledging restrictions reduces formal long-term holding requirements .
- Structural shift post-dissolution: The 2025–2028 wind-down compensation (low base, fixed end-of-term bonus) de-emphasizes performance-based equity and variable cash pay, focusing on continuity of operations; this likely lessens short-term trading signals from Murphy’s compensation while emphasizing stewardship of dissolution and asset monetization processes .
- Historical governance flag: Company repriced underwater options in March 2023 for broader option holders (not Murphy’s grant), which can be viewed as shareholder-unfriendly in some contexts; monitor for any future equity modifications affecting current officers .