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Alpha Cognition Inc., a biopharmaceutical company with a market capitalization of approximately $98 million, announced significant changes to its executive and director compensation packages, effective February 18, 2025. According to InvestingPro analysis, the company’s stock has experienced significant volatility, declining nearly 59% over the past year, though showing a modest 3.57% gain year-to-date. The decision, recommended by the Compensation Committee and approved by the Board of Directors, was informed by an independent compensation consultant’s analysis.
Michael McFadden, the CEO, will receive a base salary of $625,000, a bonus target of $375,000, and stock option compensation valued at $2,500,000, totaling $3,500,000. Similarly, COO Lauren D’Angelo’s package includes a $500,000 base salary, a $300,000 bonus target, and $1,500,000 in stock options, amounting to $2,300,000.
The Compensation Committee, assisted by Global Governance Advisors (GGA), benchmarked the compensation against a peer group of 14 companies. The review found that the CEO and COO’s base salaries were below the 25th percentile compared to the peer group. The Committee aimed to position the executives’ compensation at the 50th percentile, with the potential for higher earnings based on exceptional performance.
Additionally, the Board Chair, Committee Chairs, and Board Members received new compensation packages, combining cash and stock options. For instance, Len Mertz, Chair of the Board and Audit Committee, will receive a total of $280,000, including a $70,000 base salary (paid in stock options), stock option compensation of $95,000, a one-time stock option grant of $100,000, and an additional $15,000 for committee leadership.
The new director compensation structure includes a base salary of $40,000 per director ($70,000 for the Chairman), $95,000 in stock option grants, plus additional amounts for committee chairs and members, reflecting the workload and responsibilities.
The adjustments to executive and director compensation are part of Alpha Cognition’s strategy to align with market standards and incentivize high performance. This announcement is based on a press release statement. Subscribers to InvestingPro can access additional insights about the company’s financial health, including detailed profitability metrics and growth potential indicators. InvestingPro currently maintains several more key tips about Alpha Cognition’s financial outlook.
In other recent news, Alpha Cognition Inc. has entered into an exclusive agreement with China Medical (TASE:BLWV) System Holdings Limited to license its Alzheimer’s disease treatment, ZUNVEYL, in several Asian territories, excluding Japan, as well as in Australia and New Zealand. This deal will provide Alpha Cognition with $44 million, including upfront payments and additional sums tied to development and commercial milestones, alongside royalties on net sales. CMS will handle the regulatory processes, development, manufacturing, and commercialization of ZUNVEYL in these regions.
Additionally, Alpha Cognition completed a private issuance of equity securities, as detailed in a recent 8-K filing with the SEC. The company issued a representative’s purchase warrant for up to 34,196 shares of its common stock, exercisable from June 14, 2025, until November 8, 2029, at an initial price of $7.18 per share. This strategic move allows Alpha Cognition to raise capital without going through the traditional public offering process. Investors interested in the specifics of this transaction can refer to the full 8-K filing. These developments are part of Alpha Cognition’s ongoing efforts to expand its portfolio and financial resources.
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