Base Salary
We use base salaries to recognize the experience, skills, knowledge and responsibilities required of all our employees, including our named executive officers.
None of our named executive officers is currently party to an employment agreement or other agreement or arrangement that provides for automatic or scheduled increases in base salary.
In January 2017, Dr. Aivados base salary was set at $382,130 and in July 2017, following our initial public offering, or IPO, his annual base
salary was further increased to $400,000. In February 2018, as part of his annual performance review, Dr. Aivados annual base salary was increased to $414,000 effective January 1, 2018. In September 2018, in connection with his
appointment as our president and chief executive officer, Dr. Aivados annual base salary was increased to $500,000. In February 2019, as part of his annual performance review, Dr. Aivados annual base salary was increased to
$507,400 effective as of January 1, 2019.
Mr. Dougherty commenced employment with us in June 2017 with an annual base salary of $335,000. In
July 2017, following our IPO, Mr. Doughertys annual base salary was increased from $335,000 to $345,000. As part of his annual performance reviews, Mr. Doughertys base salary was increased in February 2018 to $357,100
effective January 1, 2018 and increased in February 2019 to $367,800 effective as of January 1, 2019.
Dr. Vukovic commenced employment
with us in November 2018. Pursuant to the terms of his employment offer letter, Dr. Vukovics annual base salary was set at $405,000. Dr. Vukovic also provided consulting services to us for several months prior to commencing
employment with us. Dr. Vukovics base salary was not adjusted as part of the annual performance review.
From May 2018 to September 2018, we
paid Dr. Longenecker a base salary at a rate of $43,558.33 per month, which was based on an annualized base salary of $522,700, for his service as our interim president and chief executive officer. After Dr. Longenecker ceased serving in
such capacity in September 2018, we entered into a consulting agreement with Dr. Longenecker, pursuant to which Dr. Longenecker agreed to provide us with certain advisory services for up to 4 days per calendar month, unless otherwise
agreed by Dr. Longenecker and us. Pursuant to the terms of the consulting agreement, we agreed to pay Dr. Longenecker a consulting fee of $12,000 per month.
In January 2017, Mr. Yanchiks annual base salary was set at $437,950 and in July 2017, following our IPO, his annual base salary was increased to
$505,000. In February 2018, as part of his annual performance review, Mr. Yanchiks annual base salary was increased to $522,700 effective January 1, 2018.
Cash Incentives
The compensation committee awarded
annual performance-based cash bonuses to our executive officers for 2017 and 2018, for up to a specific percentage of his or her salary as a vehicle to reward achievement of value-driving milestones and recognize individual performance. In
2017, Dr. Aivado and Mr. Dougherty were eligible for a performance-based cash bonus of up to 35% of such named executive officers base salary in 2017, subject to the achievement of corporate goals as determined by the compensation
committee and subject to the achievement of individual goals as recommended by our chief executive officer and approved by the compensation committee. Mr. Yanchik was eligible for a performance-based cash bonus of up to 50% of his base salary
in 2017, subject to achievement of corporate goals as determined by the compensation committee.
In February 2018, we made cash bonus awards of $252,500
to Mr. Yanchik, $162,613 to Dr. Aivado and $80,500 to Mr. Dougherty, based on the compensation committees assessment of achievement of corporate and individual goals in calendar year 2017 and, in the case of Mr. Dougherty,
the percentage of the year in which he was employed by us. In addition, in 2017 we also paid a transition bonus of $25,000 to Mr. Dougherty upon his commencement of employment with us.
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