Stephen Gunstream
About Stephen Gunstream
Stephen Gunstream, 46, is President and Chief Executive Officer of Alpha Teknova, Inc. since May 2020 and a director since September 2020. He holds a B.S. in Biomedical Engineering from Northwestern University and an MBA from Duke’s Fuqua School; his life sciences track record spans BD Biosciences (VP & GM), Integrated DNA Technologies (Chief Commercial Officer), and Applied Biosystems, and he is a named inventor on 11 issued and over 27 pending patents. 2024 annual incentive design weighted Company revenue (60%) and Adjusted EBITDA (40%); the Compensation Committee determined Company performance at 81.40% of target for 2024, driving his cash bonus outcome .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| BD (Becton Dickinson) | VP & GM, BD Biosciences | 2015–2019 | Led flow cytometry and genomics businesses |
| Integrated DNA Technologies (IDT) | Chief Commercial Officer; prior product/dev roles | 2008–2015 | Drove launches (xGen Exome Panel, gBlocks Gene Fragments); market repositioning |
| Applied Biosystems (now Thermo Fisher) | Product and business development roles | 2001–2008 | Multiple product/business development leadership roles |
External Roles
No external public company directorships disclosed for Mr. Gunstream in the proxy .
Fixed Compensation
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Base Salary ($) | 569,200 | 569,200 |
| Target Bonus % of Salary | 75% | 75% |
| Actual Cash Bonus ($) | 353,261 | 347,498 |
| Stock Awards ($, grant-date fair value) | 233,306 | — |
| Option Awards ($, grant-date fair value) | 197,737 | — |
| All Other Compensation ($) | 15,325 | 15,603 |
| Total Compensation ($) | 1,368,829 | 932,301 |
Notes:
- All other comp includes 401(k) match, HSA contributions, and minor reimbursements .
- 2024 base salaries were held flat vs 2023 by the Board .
Performance Compensation
| Component | Metric | Weighting | Target Basis | Actual Attainment | Payout Mechanics | FY 2024 Result |
|---|---|---|---|---|---|---|
| Annual Incentive | Revenue | 60% | Board-approved operating plan | Included in overall achievement | Scaled thresholds 50%–150% per metric; overall bonus capped at 137.5% of target | Company performance at 81.40% of target → bonus paid per plan |
| Annual Incentive | Adjusted EBITDA | 40% | Board-approved operating plan | Included in overall achievement | Same as above | Same as above |
| Long-term Equity | Options (time-based) | N/A | Monthly vesting over 48 months (typical 1/48th monthly) or 25% cliff then monthly depending grant | Ongoing | Value only if stock price > strike | See “Outstanding Equity Awards” |
| Long-term Equity | RSUs (time-based) | N/A | 25% vesting annually over 4 years | Ongoing | Time-based vesting; no exercise price | See “Outstanding Equity Awards” |
Equity Ownership & Alignment
| Ownership Detail | Value |
|---|---|
| Shares beneficially owned (total) | 1,608,587 |
| Ownership % of outstanding | 2.9% |
| Directly held shares | 211,154 |
| Shares acquirable within 60 days (options/RSUs) | 1,397,433 |
| Hedging/pledging policy | Hedging and pledging prohibited for directors, officers, employees, and consultants |
| Director pay for employee-director | No additional director compensation for CEO-director service |
Outstanding Equity Awards (as of 12/31/2024)
| Grant | Vesting Commencement | Exercisable (#) | Unexercisable (#) | Exercise Price ($) | Expiration | Unvested RSUs (#) | RSU Market Value ($) |
|---|---|---|---|---|---|---|---|
| Option (Aug 31, 2020; Time-based) | 12/16/2019 | 886,879 | — | 0.8368 | 8/31/2030 | — | — |
| Option (Aug 31, 2020; amended performance-based to time-based) | 6/24/2021 | 202,754 | 28,965 | 0.8368 | 8/31/2030 | — | — |
| Option (Feb 15, 2022) | 2/15/2022 | 123,958 | 51,042 | 15.09 | 2/15/2032 | — | — |
| Option (Nov 15, 2022) | 11/15/2022 | 45,572 | 41,928 | 5.36 | 11/15/2032 | — | — |
| Option (Feb 27, 2023) | 2/27/2023 | 39,531 | 46,719 | 5.41 | 2/27/2033 | — | — |
| RSUs (Feb 27, 2023; 25% annually) | 2/27/2023 | — | — | — | — | 32,343 | 270,064 (based on $8.35 close on 12/31/2024) |
Vesting mechanics:
- Typical options vest 1/48th monthly over 4 years, or 25% on first anniversary then monthly thereafter as specified .
- 2020 performance-based option amended at IPO to 48 equal monthly installments beginning June 24, 2021 .
Employment Terms
| Provision | Non-Change-in-Control (Qualifying termination) | Change-in-Control (3 months before to 12 months after) |
|---|---|---|
| Severance cash | CEO: 12 months base salary; installments | CEO: 200% of base salary; lump sum |
| Bonus | CEO: pro-rated target bonus for fiscal year; lump sum | CEO: 200% of target annual bonus; lump sum |
| Equity vesting | None (outside CIC) | Full acceleration of all outstanding equity; performance awards deemed at 100% of target |
| COBRA benefits | CEO: reimburse premiums up to 12 months or earlier eligibility cutoff | CEO: reimburse premiums up to 24 months or earlier eligibility cutoff |
| Definitions | “Cause,” “Good Reason,” “Change in Control” per 2021 Plan; detailed triggers and exceptions specified |
Offer letter history:
- Original offer letter (Nov 16, 2019) set initial base, target bonus (50%), and granted 926,879 time-based options plus 231,719 performance-based options; performance-based vesting later amended to time-based monthly at IPO to align long-term interests .
Board Governance
| Item | Detail |
|---|---|
| Board role | CEO and Class III director; not independent under Nasdaq rules |
| Chairman | Paul Grossman (director; partner at Telegraph Hill Partners) |
| Committees | Audit: Demski (Chair), Robertson, Vos; Compensation: Robertson (Chair), Demski, Grossman; Nominating/Governance: Vos (Chair), Davis, Mackowski |
| Attendance | Board held 9 meetings in FY 2024; each director attended ≥75% of board and committee meetings |
| Controlled Company | THP controls majority voting power; Teknova utilizes certain Nasdaq controlled company exemptions (majority independent board not required; some committees not fully independent) |
| Director compensation policy | Employee directors (e.g., CEO) receive no additional director compensation |
Related Party and Alignment Signals
- July 2024 private placement: 12,385,883 shares at $1.24 per share; THP affiliates, Stephen Gunstream, and CFO Matthew Lowell collectively purchased 12,217,740 shares—an alignment signal via insider participation .
- Hedging/pledging prohibited, reducing misalignment risks from derivative or collateralized positions .
Compensation Structure Analysis
- Mix shift in 2024: No new equity awards; compensation comprised of salary and cash bonus, reducing equity-linked pay vs 2023 when options ($197,737) and RSUs ($233,306) were granted . This lowers immediate dilution but also reduces near-term equity at-risk alignment.
- Incentive rigor: Annual bonus capped at 137.5% with scaled thresholds per metric; 2024 payout at 81.40% suggests targets were moderately challenging in context of Company performance .
- Long-term equity overhang: Significant legacy option grants with low strike (e.g., $0.8368) could create future dilution if stock appreciates materially .
Risk Indicators
- Auditor transition in 2024 from EY to Grant Thornton; prior EY report included going concern explanatory paragraph; 2022 material weakness remediated—monitor internal controls and liquidity trajectory .
- Controlled-company governance: THP-affiliated directors are not independent; Compensation Committee includes one non-independent director (Grossman) under the controlled-company exemption—observe decisions for investor alignment .
Equity Ownership & Alignment Compliance
- Beneficial ownership: 1,608,587 shares; 2.9% of outstanding; includes 1,397,433 acquirable within 60 days .
- Pledging/hedging: Prohibited across insiders, reducing collateralization and hedge risk .
Investment Implications
- Pay-for-performance linkage exists via revenue and Adjusted EBITDA metrics; 2024 payout at 81.40% indicates measured bonus outcomes vs plan, while lack of 2024 equity grants reduces incremental dilution and near-term equity alignment .
- Retention risk is mitigated by robust CIC economics (200% salary and bonus, full equity acceleration, extended COBRA) but could be expensive in a sale; non-CIC severance remains sizable for CEO (12 months) .
- Insider alignment is supported by policy bans on hedging/pledging and insider participation in the 2024 capital raise; legacy low-strike options can amplify insider leverage to share price recovery, implying potential selling pressure around vesting and liquidity windows—watch for Rule 10b5-1 plan disclosures and Form 4s .
- Governance: Dual role CEO-director with an independent chair mitigates concentration, but controlled-company status and committee composition warrant monitoring for compensation and nomination decisions .