EX-10.7





 Exhibit 10.7 

RENEO PHARMACEUTICALS, INC. 

NON-EMPLOYEE DIRECTOR COMPENSATION POLICY 

Each member of the Board of Directors (the “Board”) who is not also serving as an employee of or consultant to Reneo
Pharmaceuticals, Inc. (the “Company”) or any of its subsidiaries (each such member, an “Eligible Director”) will receive the compensation described in this
Non-Employee Director Compensation Policy for Board service upon and following the date of the underwriting agreement between the Company and the underwriters managing the initial public offering of the
Company’s common stock (the “Common Stock”), pursuant to which the Common Stock is priced in such initial public offering (the “Effective Date”). An Eligible Director may decline all or any
portion of their compensation by giving notice to the Company prior to the date cash may be earned or equity awards are to be paid, as the case may be, subject to compliance with applicable tax laws. This policy is effective as of the Effective Date
and may be amended at any time in the sole discretion of the Board or the Compensation Committee of the Board. 
 Annual Cash Compensation 

The annual cash compensation amount set forth below is payable to Eligible Directors in equal quarterly installments, payable in arrears on
the last day of each fiscal quarter in which the service occurred. If an Eligible Director joins the Board or a committee of the Board at a time other than effective as of the first day of a fiscal quarter, each annual retainer set forth below will
be pro-rated based on days served in the applicable fiscal year, with the prorated amount paid for the first fiscal quarter in which the Eligible Director provides the service and regular full quarterly
payments thereafter. All annual cash fees are vested upon payment. 
  

	1.      	 Annual Board Service Retainer: 



	 	a.          	 All Eligible Directors: $40,000 



	 	b.          Non-Executive	 Chair (in addition to Eligible Director Service Retainer): $30,000 



 

	2.      	 Annual Committee Chair Service Retainer: 



 

	 	a.          	 Chair of the Audit Committee: $15,000 



 

	 	b.          	 Chair of the Compensation Committee: $10,000 



 

	 	c.          	 Chair of the Nominating and Corporate Governance Committee: $8,000 



 

	3.      	 Annual Committee Member Service Retainer (not applicable to Committee Chairs): 



 

	 	a.          	 Member of the Audit Committee: $7,500 



 

	 	b.          	 Member of the Compensation Committee: $5,000 



 

	 	c.          	 Member of the Nominating and Corporate Governance Committee: $4,000 



  
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 Equity Compensation 

The equity compensation set forth below will be granted under the Company’s 2021 Equity Incentive Plan (the
“Plan”), subject to the approval of the Plan by the Company’s stockholders. All stock options granted under this policy will be nonstatutory stock options, with an exercise price per share equal to 100% of the Fair
Market Value (as defined in the Plan) of the underlying Common Stock on the date of grant, and a term of ten years from the date of grant (subject to earlier termination in connection with a termination of service as provided in the Plan, provided
that upon a termination of service other than by death or for cause, the Board may determine that the post-termination exercise period will be 12 months from the date of termination). 

 

	1.	 Initial Grant: For each Eligible Director who is first elected or appointed to the Board following
the Effective Date, on the date of such Eligible Director’s initial election or appointment to the Board (or, if such date is not a market trading day, the first market trading day thereafter), the Eligible Director will be automatically, and
without further action by the Board or the Compensation Committee of the Board, granted an option to purchase 25,000 shares of Common Stock (the “Initial Grant”). The shares subject to each Initial Grant will vest in equal
monthly installments over a three-year period such that the option is fully vested on the third anniversary of the date of grant, subject to the Eligible Director’s Continuous Service (as defined in the Plan) through each such vesting date and
will vest in full upon a Change in Control (as defined in the Plan). 


  

	2.	 Annual Grant: On the date of each annual stockholder meeting of the Company held after the Effective
Date, each Eligible Director who continues to serve as a non-employee member of the Board following such stockholder meeting (excluding any Eligible Director who is first appointed or elected to the Board at
such meeting) will be automatically, and without further action by the Board or the Compensation Committee of the Board, granted an option to purchase 12,500 shares of Common Stock (the “Annual Grant”). The shares subject to
the Annual Grant will vest in full on the earlier of (x) the one-year anniversary of the date of grant of the Annual Grant or (y) the day prior to the date of the Company’s next annual
stockholder meeting, subject to the Eligible Director’s Continuous Service through such vesting date and will vest in full upon a Change in Control. With respect to an Eligible Director who, following the Effective Date, was first elected or
appointed to the Board on a date other than the date of the Company’s annual stockholder meeting, upon the Company’s first annual stockholder meeting following such Eligible Director’s first joining the Board, such Eligible
Director’s first Annual Grant will be pro-rated to reflect the time between such Eligible Director’s election or appointment date and the date of such first annual stockholder meeting.



 Non-Employee Director Compensation Limit 

Notwithstanding the foregoing, the aggregate value of all compensation granted or paid, as applicable, to any individual for service as a Non-Employee Director (as defined in the Plan) shall in no event exceed the limits set forth in Section 3(d) of the Plan. 

  
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