SUTRO BIOPHARMA, INC.

DEF 14A
04/26/2019

Whether or not you plan to attend the meeting in person, please vote on the internet or by telephon

Sincerely,

William J. Newell
Chief Executive Officer

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SUTRO BIOPHARMA, INC.
DEF 14A
04/26/2019

Beneficial Ownership

Page
INFORMATION ABOUT SOLICITATION AND VOTING 1

INTERNET AVAILABILITY OF PROXY MATERIALS 1

GENERAL INFORMATION ABOUT THE MEETING 1

GENERAL PROXY INFORMATION 2

CORPORATE GOVERNANCE STANDARDS AND DIRECTOR 4

INDEPENDENCE

PROPOSAL NO. 1 ELECTION OF CLASS I DIRECTORS 9

PROPOSAL NO. 2 RATIFICATION OF INDEPENDENT 13

REGISTERED PUBLIC ACCOUNTING FIRM

REPORT OF THE AUDIT COMMITTEE 14

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL 15

OWNERS AND MANAGEMENT

EXECUTIVE OFFICERS 18

EXECUTIVE COMPENSATION 20

EQUITY COMPENSATION PLAN INFORMATION 24

CERTAIN RELATIONSHIPS AND RELATED-PARTY 25

TRANSACTIONS

ADDITIONAL INFORMATION 26

OTHER MATTERS 27

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SUTRO BIOPHARMA, INC.
DEF 14A
04/26/2019

Nominees to the Board of Directors

Name Age Class

Michael Dybbs, Ph.D. (1) 44 Class I Director
John G. Freund, M.D. (2) 65 Class I Director

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SUTRO BIOPHARMA, INC.
DEF 14A
04/26/2019

Continuing Directors

Name Age Class

Daniel Janney (1) (2) 53 Class II Director
V. Bryan Lawlis, Ph.D. (1) (3) 67 Class II Director
William J. Newell 61 Class II Director
Joseph Lobacki (2) 60 Class III Director
Daniel Petree 63 Class III Director
Shalini Sharp (3) 40 Class III Director
Michael Ross, Ph.D. (2) (4) 69 Class I Director

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SUTRO BIOPHARMA, INC.
DEF 14A
04/26/2019

Non-Employee Director Compensation

Name Fees Earned or Option Awards ($)(1

Paid in Cash ($)
Michael Dybbs, Ph.D. $11,250 $38
John G. Freund, M.D. 10,625
Michael Ross, Ph.D. 11,250
Daniel Janney 21,250
V. Bryan Lawlis, Ph.D. 13,750
Joseph Lobacki 13,125
Daniel Petree 8,750
Shalini Sharp 7,337
Armen Shanafelt, Ph.D. (2) - -

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on Awards ($)(1) All Other Total ($)
Compensation ($)
$387,449 $ - $398,
387,449 -
387,449 -
387,449 -
387,449 20,000 (3)
387,449 20,000 (3)
387,449 640,000 (3)
309,272 -
- -
l ($)

$398,699
398,074
398,699
408,699
421,199
420,574
1,036,199
316,609
SUTRO BIOPHARMA, INC.
DEF 14A
04/26/2019

Principal Accountant Fees and Services

Fees Billed Fiscal Year 2018 Fiscal Year 2017

Audit fees (1) $1,645,380 $436,450
Audit-related fees (2) 30,000
Tax fees (3) 109,109
All other fees (4) - -
Total fees $1,784,489 $583,877

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al Year 2017
$436,450
45,117
102,310

$583,877
SUTRO BIOPHARMA, INC.
DEF 14A
04/26/2019

Beneficial Ownership

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each stockholder known by us to be the beneficial
owner of more than 5% of our common stock;
SUTRO BIOPHARMA, INC.
DEF 14A
04/26/2019

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Beneficial Ownership
Name of Beneficial Owner Number
5% Stockholders
Merck Sharp & Dohme Corp., a subsidiary 2,723,509
of Merck & Co., Inc., Kenilworth, NJ (1)
Alta Partners VIII, L.P. (2) 1,944,901
Skyline Venture Partners, L.P. (3) 1,960,053
Entities affiliated with SV Health Investors (4) 1,824,542
Celgene Corporation (5) 1,726,197
Citadel Advisors LLC. (6) 1,728,345
Lilly Ventures Fund I LLC (7) 1,540,813
Eventide Asset Management, LLC (8) 1,244,895

Directors and Named Executive Officers:

William Newell (9) 421,093
Arturo Molina, M.D., M.S., FACP (10) 127,854
Trevor Hallam, Ph.D. (11) 169,798
Michael Dybbs, Ph.D. (12) 5,785
John G. Freund, M.D. (13) 1,965,838
Daniel S. Janney (14) 1,950,686
V. Bryan Lawlis, Ph.D. (15) 25,536
Joseph Lobacki (16) 22,130
Daniel H. Petree (17) 32,003
Michael Ross, Ph.D. (18) 1,830,327
Shalini Sharp (19) 4,338
All executive officers and directors as 6,881,399
a group (15 persons) (20)

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Percent

11.90 %

8.50
8.50
8.00
7.50
7.50
6.70
5.40

1.80
*
*
*
8.60
8.50
*
*
*
8.00
*
28.90 %
SUTRO BIOPHARMA, INC.
DEF 14A
04/26/2019

EXECUTIVE OFFICERS

Name Age
William J. Newell 61
Arturo Molina, M.D., M.S., FACP 60
Trevor J. Hallam, Ph.D. 60
Edward Albini 61
Shabbir T. Anik, Ph.D. 66
Linda Fitzpatrick 62
Stephen T. Worsley 55

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Position(s)
Chief Executive Officer and Director
Chief Medical Officer
Chief Scientific Officer
Chief Financial Officer
Chief Technical Operations Officer
Chief People and Communications Officer
Chief Business Officer
SUTRO BIOPHARMA, INC.
DEF 14A
04/26/2019

Summary Compensation

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William J. Newell, Chief Executive Officer
and Director;
SUTRO BIOPHARMA, INC.
DEF 14A
04/26/2019

Summary Compensation

Name and Principal Position Year Salary ($)

William J. Newell
Chief Executive Officer ### 482,000
### 467,620
Arturo Molina, M.D., M.S., FACP
Chief Medical Officer ### 440,300
### 427,450
Trevor Hallam, Ph.D.
Chief Scientific Officer ### 405,800
### 393,975

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Option Stock
Awards ($) (1) Awards ($)(1)

6,764,993 1,136,355
- -

2,306,240 387,390
- -

2,951,998 702,465
- -
Non-Equity All Other
Incentive Plan Compensation ($)
Compensation ($) (2)

301,250 -
199,000 35,903

220,150 -
145,300 -

202,900 132,000
134,000 149,951
 Total ($)

8,684,598
(3) 702,523

3,354,080
572,750

(4) 4,395,163
(3) (4) 677,926
SUTRO BIOPHARMA, INC.
DEF 14A
04/26/2019

Outstanding Equity Awards

Option Awards
Name Grant Number of
Date Securities
Underlying
Unexercised
Options (#)
Exercisable
William J. Newell 09/26/2018 (1) 6,666
09/26/2018 (1) 21,743
09/28/2015 (2) (3) 8,347
09/28/2015 (2) (4) 50,717
09/28/2015 (2) (3) 13,774

Arturo Molina, M.D., 09/26/2018 (1) 6,666

M.S., FACP
09/26/2018 (1) 3,018
02/24/2016 (2) (5) 91,007
02/24/2016 (2) (4) 7,063

Trevor Hallam, Ph.D. 09/26/2018 (1) 6,666

09/26/2018 (1) 5,730
09/28/2015 (2) (4) 7,579
09/28/2015 (2) (4) 8,219
09/28/2015 (2) (3) 10,331
09/28/2015 (2) (4) 7,207
02/27/2014 (2) (4) 15,631
02/27/2014 (2) (4) 9,152
02/14/2013 (2) (4) 6,343
09/20/2012 (2) (4) 19,405
02/09/2011 (2) (4) 9,182
02/09/2011 (2) (4) 23,934

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Number of Option
Securities Exercise
Underlying Price ($)
Unexercised
Options (#)
Unexercisable
26,664 15.00
399,472 15.00
- 11.98
11,075 11.98
- 11.98

26,664 15.00

118,610 15.00
28,603 14.16
- 14.16

26,664 15.00
159,287 15.00
- 11.98
- 11.98
3,359 11.98
- 11.98
- 5.81
- 5.81
- 5.81
- 4.36
- 4.36
- 4.36
 Stock Awards
Option Grant Date Number
Expiration of Units
Date of Stock
That Have
Not
Vested (#)
9/25/2028 09/26/2018 (1) 75,757
9/25/2028
9/27/2025
9/27/2025
9/27/2025

9/25/2028 09/26/2018 (1) 25,826

9/25/2028
2/23/2026
2/23/2026

9/25/2028 09/26/2018 (1) 33,057

9/25/2028 09/26/2018 (1) 13,774
9/27/2025
9/27/2025
9/27/2025
9/27/2025
2/26/2024
2/26/2024
2/13/2023
9/19/2022
2/8/2021
2/8/2021
Market
Value of
Units of
Stock That
Have Not
Vested (#)
1,136,355

387,390

495,855
206,610
SUTRO BIOPHARMA, INC.
DEF 14A
04/26/2019

EQUITY COMPENSATION PLAN INFORMATION

Plan category Number of securities

to be issued upon
exercise of
outstanding options,
warrants and rights (2)

Equity compensation plans approved by 3,422,958

security holders
Equity compensation plans not approved -
by security
holders
Total 3,422,958

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Weighted-average Number of securities
exercise price of remaining available
outstanding options, for future issuance
warrants and rights under equity
(1) (2) compensation plans
(3)
$13.74 2,755,610

- -

$13.74 2,755,610