Peter Heerma
About Peter Heerma
Peter Heerma, age 54, has served as Chief Commercial Officer of Travere Therapeutics since October 2019. He holds a Master of Science in European business administration and business law from Lund University (Sweden) and a Bachelor of Science in retail management and marketing from Stenden University (Netherlands) . During 2024, Travere’s net product sales grew to approximately $226.7 million from $127.5 million in 2023, reflecting commercial execution on FILSPARI and pipeline progress; the Compensation Committee assessed corporate goal achievement at 140% for 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Amgen Inc. | Global Product General Manager (Oncology & Cardiovascular) | Dec 2015 – Sep 2019 | Led global commercial product management across oncology and cardiovascular portfolios . |
| Abbott Laboratories / AbbVie Inc. | Multiple roles: Senior Director Portfolio Strategy (Hepatology/Nephrology); Senior Director & Asset Team Lead (HCV, diabetic nephropathy, neuroscience); Director Commercial Strategy (Renal Care); International Marketing Director; Business Unit Manager (Hospital); Product Manager (Obesity/Cardiovascular) | Dec 2003 – Nov 2015 | Progressive leadership across portfolio strategy, asset leadership, and commercial strategy in renal, hepatology, neuroscience, hospital, and cardio-metabolic categories . |
External Roles
- None disclosed .
Fixed Compensation
Base Salary and Target Bonus
| Named Executive Officer | 2023 Base Salary | 2024 Base Salary | Target Bonus % (2024) |
|---|---|---|---|
| Peter Heerma | $490,000 | $505,000 | 50% of base salary |
Summary Compensation (3-year)
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | $453,190 | $487,167 | $503,750 |
| Non-Equity Incentive Compensation ($) | $239,400 | $240,100 | $353,500 |
| Stock Awards Grant-Date Fair Value ($) | $761,200 | $604,800 | $299,155 |
| Option Awards Grant-Date Fair Value ($) | $538,929 | $656,747 | $342,258 |
| All Other Compensation ($) | $13,028 | $15,100 | $14,697 (life insurance $2,622; 401(k) match $12,075) |
| Total ($) | $2,005,747 | $2,003,914 | $1,513,360 |
2024 Director/Officer Benefits and Plans
- 401(k) employer match: 50% of employee contributions up to 7% of earnings; three-year vesting; catch-up contributions matched beginning 2022 .
- Stock ownership guidelines: executives (other than CEO) must hold Company equity equal to at least 1x annual base salary within five years of April 2022 or appointment; all executive officers have met the guidelines .
- Clawback: Dodd-Frank compliant incentive compensation recoupment policy implemented .
Performance Compensation
Annual Cash Incentive (2024)
| Metric | Target | Actual | Payout | Notes |
|---|---|---|---|---|
| Annual Bonus (Cash) | 50% of base salary | 140% corporate goal achievement (no formal weightings) | 70% of base salary ($353,500) | Corporate goals included revenues/ cash management (FILSPARI revenue), regulatory milestones (FILSPARI full approval in US IgAN; EU CMA), pipeline diversification/progression, culture/compliance . |
Long-Term Equity (2024 Grants)
| Award Type | Grant Date | Shares/Units | Exercise Price | Expiration | Vesting / Performance |
|---|---|---|---|---|---|
| Stock Options | 1/31/2024 | 65,000 | $8.93 | 1/31/2034 | 25% after 1 year; remainder monthly over next 3 years . |
| RSUs | 1/31/2024 | 25,000 | — | — | Vest annually over 4 years . |
| PSUs (Target) | 1/31/2024 | 8,500 | — | — | Vest upon achievement of specified clinical/regulatory/sales milestones; no vesting before 12 months; up to +50% additional shares for accelerated timelines; expire at 4 years if milestones not achieved . |
2024 Equity Value Realized
| Metric | 2024 |
|---|---|
| Shares acquired on vesting | 20,272 (RSUs/PSUs) |
| Value realized on vesting ($) | $187,479 |
| Shares acquired on option exercise | — |
| Value realized on option exercise ($) | — |
Equity Ownership & Alignment
Beneficial Ownership (as of March 3, 2025)
| Holder | Shares Beneficially Owned | % of Shares Outstanding |
|---|---|---|
| Peter Heerma | 367,679 | ~0.41% (367,679 / 88,757,341) |
| Shares Outstanding | 88,757,341 | — |
- Ownership guidelines met (≥1x base salary for executive officers) .
- Anti-hedging/short-sale policy: prohibits purchasing/writing options, short sales, hedging transactions (collars, equity swaps, forwards) and other speculative trading by employees, officers, and directors .
- Pledging: no explicit pledging policy disclosed in proxy; not mentioned in insider trading policy excerpt .
Outstanding Equity Awards (as of Dec 31, 2024)
| Grant Date | Type | Exercisable | Unexercisable | Strike | Expiration | Unvested RSUs (#) | Market Value of Unvested RSUs ($) | Unearned PSUs (#) | Market/ Payout Value ($) |
|---|---|---|---|---|---|---|---|---|---|
| 1/31/2024 | Option | — | 65,000 | $8.93 | 1/31/2034 | — | — | — | — |
| 1/31/2024 | RSU | — | — | — | — | 25,000 | $435,500 | — | — |
| 1/31/2024 | PSU | — | — | — | — | — | — | 8,500 | $148,070 |
| 1/31/2023 | Option | 26,114 | 28,386 | $22.40 | 1/31/2033 | — | — | — | — |
| 1/31/2023 | RSU | — | — | — | — | 15,188 | $264,575 | — | — |
| 1/31/2022 | Option | 28,700 | 10,660 | $27.50 | 1/31/2032 | — | — | — | — |
| 1/31/2022 | RSU | — | — | — | — | 4,920 | $85,706 | — | — |
| 1/31/2022 | PSU | — | — | — | — | — | — | 17,840 | $310,773 |
| 1/21/2021 | Option | 56,302 | 1,198 | $26.88 | 1/21/2031 | — | — | — | — |
| 1/21/2021 | RSU | — | — | — | — | 3,750 | $65,325 | — | — |
| 1/31/2020 | Option | 55,000 | — | $15.46 | 1/31/2030 | — | — | — | — |
| 10/01/2019 | Option | 100,000 | — | $11.25 | 10/01/2029 | — | — | — | — |
- Aggregate awards granted to Heerma under the 2018 Plan since approval through March 3, 2025: 479,040 .
Employment Terms
| Term | Detail |
|---|---|
| Employment Agreement | Executed October 1, 2019 . |
| At-Will Employment | Yes . |
| Target Bonus | Currently 50% of base salary; discretionary annual bonus . |
| Severance (No CIC) | 1.0x base salary + 1.0x target bonus, paid over 12 months; COBRA up to 12 months; equity vesting acceleration equal to 12 months of additional service . |
| Change-in-Control (CIC) | Double-trigger: upon termination without cause or constructive termination in connection with a CIC; 1.5x base salary + 1.5x target bonus (lump sum); COBRA up to 18 months; full acceleration of all stock awards . |
| Potential Payments (No CIC) | Total $1,857,367; components: Severance $757,500; Accrued Comp $56,327; Stock Awards $1,028,515; Medical $15,025 (assumes event on 12/31/2024; closing price $17.42) . |
| Potential Payments (CIC) | Total $3,076,914; components: Severance $1,136,250; Accrued Comp $56,327; Stock Awards $1,861,799; Medical $22,538 (assumes event on 12/31/2024; closing price $17.42) . |
| Disability Scenario | Base $505,000; Bonus $252,500; Accrued $56,327; Stock Awards $1,028,515; Medical $15,025; Total $1,857,367 . |
| Non-Compete / Non-Solicit | Not disclosed in proxy/8-K excerpts returned. |
| Clawback | Dodd-Frank compliant; applies to stock awards under Amended 2018 Plan . |
| Repricing Prohibition | Amended 2018 Plan prohibits option/SAR repricing without stockholder approval . |
Compensation Structure Analysis
- Mix and trend: In 2024, total compensation declined versus 2023 due to lower grant-date fair value of stock and option awards, while cash incentive rose with 140% corporate goal achievement; 2024 total $1.51M vs $2.00M in 2023 .
- Equity vehicle mix: Options (4-year vest, 25% cliff then monthly), RSUs (4 annual tranches), and PSUs (clinical/regulatory/sales milestones with potential +50% shares for accelerated timelines; 4-year expiry if unmet) .
- Governance safeguards: No single-trigger vesting in plan; clawback enforced; no repricing; stock ownership guidelines met .
Risk Indicators & Red Flags
- Hedging/short sales prohibited by policy, reducing misalignment risk .
- Pledging: no explicit disclosure—monitor for updates in 10-K Exhibit 19.1 or future proxies .
- Equity award modification history: 2023 PSU modification tied to Chenodal asset sale; 66% vested at closing, remainder cancelled; fair value impact $130,581 (ASC 718) .
- Plan features: minimum 12-month vesting on awards (except up to 5% carve-out); no evergreen; shareholder approval required for share increases .
Investment Implications
- Strong pay-for-performance signals: 2024 cash bonus paid at 140% corporate performance with FILSPARI approvals and sales growth; PSUs tied to clinical/regulatory/sales milestones drive long-term alignment and retention via accelerated vesting potential on faster timelines .
- Retention risk appears mitigated: double-trigger CIC protection (1.5x cash + full equity acceleration) and non-CIC severance (1.0x cash + 12 months equity acceleration) provide stability, while anti-hedging and ownership guidelines support alignment; monitor pledge policy clarity .
- Near-term selling pressure: 2024 equity vesting of 20,272 shares with $187,479 value and significant unvested RSUs/PSUs may create periodic supply at vest dates; no 2024 option exercises reported for Heerma .
- Execution track record: Heerma’s commercial leadership coincides with net product sales growth and regulatory wins (EU/UK approvals), supporting commercial momentum; continued PSU milestone achievement would likely correlate with value creation .