Pay Versus Performance
As required by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Item 402(v) of Regulation S-K, the following tables and related disclosure show the relationship between (i) the total compensation for our principal executive officer (“PEO”) and other named executive officers (“NEOs”) as set forth in the Summary Compensation Table, (ii) the “compensation actually paid” (“CAP”) for our PEO and NEOs (computed in accordance with Item 402(v) of Regulation S-K), (iii) our total shareholder return (“TSR”), and (iv) our net income.
This disclosure does not necessarily reflect value actually realized by our NEOs or how our Compensation Committee evaluates compensation decisions in light of Company or individual performance.
Year |
|
Summary |
|
|
Compensation |
|
|
Average |
|
|
Average Compensation |
|
|
Value of $100 |
|
|
Value of $100 |
|
|
Net Income |
|
|||||||
2025 |
|
|
1,995,018 |
|
|
|
1,861,484 |
|
|
|
1,313,805 |
|
|
|
1,022,588 |
|
|
|
17 |
|
|
|
135 |
|
|
|
(143 |
) |
2024 |
|
|
3,666,341 |
|
|
|
(1,849,608 |
) |
|
|
1,933,897 |
|
|
|
(445,355 |
) |
|
|
20 |
|
|
|
102 |
|
|
|
(119 |
) |
2023 |
|
|
4,255,006 |
|
|
|
3,233,266 |
|
|
|
1,980,327 |
|
|
|
1,527,898 |
|
|
|
86 |
|
|
|
104 |
|
|
|
(130 |
) |
Year |
|
Summary |
|
|
Minus Stock and |
|
|
Plus Year-End |
|
|
Plus Change in Value |
|
|
Plus Value of |
|
|
Plus Change in Value |
|
|
Compensation |
|
|||||||
2025 |
|
|
1,995,018 |
|
|
|
(979,712 |
) |
|
|
997,493 |
|
|
|
(166,860 |
) |
|
|
131,286 |
|
|
|
(115,741 |
) |
|
|
1,861,484 |
|
2024 |
|
|
3,666,341 |
|
|
|
(2,777,775 |
) |
|
|
1,057,695 |
|
|
|
(2,893,561 |
) |
|
|
131,761 |
|
|
|
(1,034,069 |
) |
|
|
(1,849,608 |
) |
2023 |
|
|
4,255,006 |
|
|
|
(3,190,771 |
) |
|
|
3,641,317 |
|
|
|
(900,099 |
) |
|
|
203,555 |
|
|
|
(775,742 |
) |
|
|
3,233,266 |
|
Year |
|
Average Summary |
|
|
Minus Stock and |
|
|
Plus Year-End |
|
|
Plus Change in Value |
|
|
Plus Value of |
|
|
Plus Change in Value |
|
|
Fair Value at Start of Fiscal Year of Awards That Failed to Meet Vesting Conditions($) |
|
|
Compensation |
|
||||||||
2025 |
|
|
1,313,805 |
|
|
|
(221,327 |
) |
|
|
177,272 |
|
|
|
(35,087 |
) |
|
|
50,392 |
|
|
|
(42,829 |
) |
|
|
(219,638 |
) |
|
|
1,022,588 |
|
2024 |
|
|
1,933,897 |
|
|
|
(1,062,850 |
) |
|
|
404,701 |
|
|
|
(1,319,273 |
) |
|
|
50,416 |
|
|
|
(452,246 |
) |
|
|
— |
|
|
|
(445,355 |
) |
2023 |
|
|
1,980,327 |
|
|
|
(1,055,565 |
) |
|
|
1,204,614 |
|
|
|
(373,876 |
) |
|
|
67,339 |
|
|
|
(294,941 |
) |
|
|
— |
|
|
|
1,527,898 |
|
Year |
|
Summary |
|
|
Minus Stock and |
|
|
Plus Year-End |
|
|
Plus Change in Value |
|
|
Plus Value of |
|
|
Plus Change in Value |
|
|
Compensation |
|
|||||||
2025 |
|
|
1,995,018 |
|
|
|
(979,712 |
) |
|
|
997,493 |
|
|
|
(166,860 |
) |
|
|
131,286 |
|
|
|
(115,741 |
) |
|
|
1,861,484 |
|
2024 |
|
|
3,666,341 |
|
|
|
(2,777,775 |
) |
|
|
1,057,695 |
|
|
|
(2,893,561 |
) |
|
|
131,761 |
|
|
|
(1,034,069 |
) |
|
|
(1,849,608 |
) |
2023 |
|
|
4,255,006 |
|
|
|
(3,190,771 |
) |
|
|
3,641,317 |
|
|
|
(900,099 |
) |
|
|
203,555 |
|
|
|
(775,742 |
) |
|
|
3,233,266 |
|
Year |
|
Average Summary |
|
|
Minus Stock and |
|
|
Plus Year-End |
|
|
Plus Change in Value |
|
|
Plus Value of |
|
|
Plus Change in Value |
|
|
Fair Value at Start of Fiscal Year of Awards That Failed to Meet Vesting Conditions($) |
|
|
Compensation |
|
||||||||
2025 |
|
|
1,313,805 |
|
|
|
(221,327 |
) |
|
|
177,272 |
|
|
|
(35,087 |
) |
|
|
50,392 |
|
|
|
(42,829 |
) |
|
|
(219,638 |
) |
|
|
1,022,588 |
|
2024 |
|
|
1,933,897 |
|
|
|
(1,062,850 |
) |
|
|
404,701 |
|
|
|
(1,319,273 |
) |
|
|
50,416 |
|
|
|
(452,246 |
) |
|
|
— |
|
|
|
(445,355 |
) |
2023 |
|
|
1,980,327 |
|
|
|
(1,055,565 |
) |
|
|
1,204,614 |
|
|
|
(373,876 |
) |
|
|
67,339 |
|
|
|
(294,941 |
) |
|
|
— |
|
|
|
1,527,898 |
|
Compensation Actually Paid and the Company’s Total Shareholder Return
The following chart sets forth the relationship between the “compensation actually paid” to our PEO, the average “compensation actually paid” to our NEOs as a group (excluding our PEO), and the Company’s total shareholder return over the period covering
fiscal years 2023, 2024, and 2025. We utilize several performance measures to align executive compensation with our performance, but those are not financial performance measures, such as total shareholder return. For example, as described in more detail above in the section titled “Executive Compensation,” part of the compensation our NEOs are eligible to receive consists of annual performance-based cash bonuses which are designed to provide appropriate incentives to achieve defined annual corporate goals and to reward our NEOs for individual achievement towards these goals. Additionally, we view equity awards, which are an integral part of our executive compensation program, as related to Company performance because the value of each award increases only if the value of our common stock appreciates from the grant date and if the NEO continues employment over the vesting period. These equity awards strongly align our NEOs’ interests with those of our stockholders by providing a continuing financial incentive to maximize long-term value for our stockholders and by encouraging our NEOs to continue in our employment for the long-term.
Compensation Actually Paid and Net Income (Loss)
Alector is not a commercial-stage company, and we did not have any revenue during the periods presented, except revenue related to the agreement with AbbVie and the agreement with GSK for the license and co-development of product candidates with those parties. Consequently, we have not historically looked to net income (loss) as a performance measure for our executive compensation program. From 2023 to 2024 our net loss decreased, the “compensation actually paid” for our PEO decreased, and the “compensation actually paid” for our other NEOs decreased. The decrease in net loss in 2024 was mainly due to the termination of the AL002 program and therefore we recognized all remaining revenue in 2024. From 2024 to 2025 our net loss increased, the “compensation actually paid” for our PEO increased, and the “compensation actually paid” for our other NEOs increased. The increase in net loss in 2025 was mainly due to the termination of the AL002 program and therefore we recognized all remaining revenue in 2024.