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Michael Paul Gray

Chief Financial and Operating Officer at Upstream Bio
Executive

About Michael Paul Gray

Michael Paul Gray, 54, is Upstream Bio’s Chief Financial and Operating Officer (principal financial and accounting officer) since March 2024, with prior CFO/COO roles at Carmot Therapeutics, Imara, Arsanis, and senior finance/business roles at Curis; he holds a B.S. in accounting from Bryant College and an M.B.A. from Babson’s F.W. Olin Graduate School of Business . As principal financial officer, Gray certifies SOX 302/906 on UPB’s 10-Qs, underscoring accountability for internal controls and financial reporting . Executive bonuses for 2024 were tied to corporate milestones focused on program advancement and financing, with the board determining 100% goal achievement and awarding Gray a $184,000 bonus in Q1 2025; as an EGC, UPB does not provide pay-versus-performance disclosures (no TSR/ROIC tables) .

Past Roles

OrganizationRoleYearsStrategic Impact
Carmot Therapeutics, Inc.Chief Financial Officer & Chief Operating OfficerJun 2023 – Feb 2024CFO/COO through pre-acquisition phase; finance and operations leadership
Imara, Inc.Chief Financial Officer & Chief Operating OfficerApr 2019 – Mar 2023Led finance/ops during strategic transitions in hematology
Arsanis, Inc.Chief Financial Officer & Chief Operating OfficerMar 2016 – Mar 2019CFO/COO through clinical-stage strategic actions
Curis, Inc.Chief Financial Officer & Chief Business Officer (earlier senior roles)Feb 2013 – Feb 2016 (latest role)Corporate finance and BD leadership in oncology platform

External Roles

OrganizationRoleYearsStrategic Impact
Therapeutics Acquisition CorporationDirectorMay 2020 – Jul 2021SPAC governance/transaction oversight in biotech

Fixed Compensation

Metric (2024)Value
Annual Base Salary$460,000
Target Bonus % of Base40%
Actual Bonus Paid$184,000 (100% of corporate goals achieved; paid Q1 2025)
Option Awards (Grant-Date Fair Value)$2,401,910
Total Compensation$2,938,577

Performance Compensation

MetricWeightingTargetActualPayoutVesting/Timing
Corporate milestones (program advancement; financing)Not disclosed40% of base for Gray 100% achievement (Q4 2024 determination) $184,000 cash Paid Q1 2025
  • Compensation consultant: Alpine Rewards engaged by the Compensation Committee; advisors report to committee (not management) .
  • Clawback: UPB maintains an SEC/Nasdaq-compliant compensation recovery policy requiring recovery of incentive-based pay upon a material restatement (3-year lookback) .
  • Insider trading policy: Prohibits short sales, derivatives, and hedging transactions; highlights risks of margin/pledging, though pledging prohibition is not expressly stated .
  • Rule 10b5‑1 plans: Allowed with appropriate controls (plans adopted when not in possession of MNPI) .

Equity Ownership & Alignment

Ownership ItemAmount / Status
Beneficial ownership (shares)186,453 shares via options exercisable within 60 days of April 14, 2025
Ownership % of outstanding<1%
Stock ownership guidelinesNot disclosed in proxy
Hedging/derivativesProhibited under insider trading policy
Pledging/margin usePolicy highlights risks; no pledging disclosure for Gray

Outstanding Equity Awards (as of 12/31/2024)

Vesting CommencementExercisable (#)Unexercisable (#)Exercise Price ($)Expiration
03/26/2024445,0405.6903/26/2034
04/05/2024152,4505.6903/26/2034
  • Standard vesting: 25% at 1-year anniversary of vesting start; remaining 75% monthly thereafter, subject to continuous service .
  • Change-in-control acceleration: Full acceleration of time-based unvested equity upon qualifying termination within CIC period under Executive Severance Plan .

Employment Terms

TermDetail
Role & Start DateCFO & COO since March 2024
Base Salary & Bonus Target$460,000 base; 40% target bonus
Severance (non‑CIC)9 months base salary + company health contribution continuation for CFO/COO on qualifying termination (without cause/for good reason)
Severance (CIC period)Lump sum 12 months base + 1.0x target bonus + company health contribution for CIC period; full acceleration of time‑based unvested equity
ClawbackMandatory recovery of incentive-based compensation upon material restatement (SEC/Nasdaq compliant)
Insider Trading / 10b5‑1Hedging/derivatives prohibited; 10b5‑1 plans permitted under policy controls
IndemnificationIndividual indemnification agreements for directors and executive officers (Delaware law maximum)
Legal proceedingsNo material legal proceedings adverse to UPB involving executive officers

Investment Implications

  • Pay-for-performance alignment: 2024 cash bonus paid at 100% reflects achievement of program/financing milestones, indicating operational execution; equity grants are time-based options that incentivize retention rather than strict performance outcomes .
  • Retention and CIC economics: Non‑CIC severance of 9 months base and CIC package of 12 months base plus 1.0x target bonus with full acceleration of time-based equity reduce turnover risk but could create event-driven selling pressure if a CIC occurs and awards accelerate .
  • Ownership alignment: Beneficial ownership is <1%, with vested options of 186,453 shares, suggesting alignment is predominantly via options rather than substantial common stock holdings; hedging prohibitions support alignment, and no pledging disclosure is provided .
  • Governance and risk: SOX certifications by Gray underscore accountability for controls; presence of clawback policy and independent comp consultant mitigate governance risk, though EGC status limits pay-versus-performance transparency .