of the Board on which he served that were held during the last fiscal year. Directors are encouraged to attend the Companys annual meetings of stockholders where practicable. All of the
directors serving at the time of the 2018 annual meeting attended last years annual meeting of stockholders either in person or telephonically.
The Board has standing audit, compensation and nominating & governance committees.
Compensation Committee
The Compensation Committee is responsible for recommending and reviewing the compensation, including options and perquisites, of the Companys officers and other employees generally, but only reviews
and individually approves the compensation for our executive officers, including the Named Executive Officers (other than our Chief Executive Officer). With respect to the compensation of our Chief Executive Officer, final decisions are made by the
independent members of our Board of Directors, upon the recommendations of the Compensation Committee.
In making its
executive compensation determinations, the Compensation Committee receives input from its compensation consultant, as well as recommendations from our Chief Executive Officer, although no member of management is present for or participates in
decisions regarding his or her own compensation.
In discharging its responsibilities, the Compensation Committee works with
members of our management team, including our Chief Executive Officer. The management team assists the Compensation Committee by providing information on Company and individual performance, market data, and managements perspective and
recommendations on compensation matters. The Compensation Committee solicits and reviews our Chief Executive Officers recommendations and proposals with respect to adjustments to base salaries, cash incentive compensation, long-term incentive
compensation opportunities, program structures, and other compensation-related matters for our executive officers (other than with respect to his own compensation). The Compensation Committee reviews and discusses these recommendations and proposals
with our Chief Executive Officer and uses them as one factor in determining and approving the compensation for our executive officers (other than our Chief Executive Officer). Our Chief Executive Officer recuses himself from all discussions and
recommendations regarding his own compensation.
Under its charter, the Compensation Committee has the authority to engage the
services of outside advisors, experts, and others to assist it in the discharge of its responsibilities. In accordance with this authority, the Compensation Committee has retained the services of Compensia, Inc., a national compensation consulting
firm that specializes in executive compensation matters, to assist it in evaluating our executive compensation program, gathering and analyzing data on the competitive market for executive talent, and formulating and assessing potential changes to
our executive compensation program. Compensia serves at the discretion of the Compensation Committee, which reviews Compensias engagement annually.
The Compensation Committee regularly reviews the objectivity and independence of the advice provided by Compensia on executive compensation matters. In 2017, the Compensation Committee considered the six
specific independence factors adopted by the SEC and the NASDAQ Stock Market and determined that Compensia is independent and that its work did not raise any conflicts of interest.
The Compensation Committee held eight meeting during 2017. From January 1, 2017 until March 1, 2017, the Compensation Committee
consisted of Messrs. Wyszomierski (Chairman), Van Ness and Limber and, thereafter, consisted of Messrs. Wyszomierski (Chairman), Van Ness and Perry. The Board has adopted a written charter for the Compensation Committee, a copy of which is available
on the Companys website at
www.xoma.com
.
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