UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of the

Securities Exchange Act of 1934

 

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Check the appropriate box:

 

 

Preliminary Proxy Statement

 

 

 

Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

 

 

 

Definitive Proxy Statement

 

 

 

Definitive Additional Materials

 

 

 

Soliciting Material Pursuant to §240.14a-12

HERON THERAPEUTICS, INC.

(Name of Registrant as Specified in Its Charter)

 

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

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1)

 

Title of each class of securities to which transaction applies:

 

 

 

2)

 

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Fee paid previously with preliminary materials.

 

 

 

Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

 

 

 

 

 

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Date Filed:

 

 

 


 

HERON THERAPEUTICS, INC.

Notice of 2021 Annual Meeting of Stockholders

to Be Held on June 17, 2021

To the Stockholders of Heron Therapeutics, Inc.:

The 2021 Annual Meeting of Stockholders of Heron Therapeutics, Inc. (“Heron,” “Company,” “we,” “us” and “our”), a Delaware corporation, will be held on June 17, 2021 at 9:00 a.m. Pacific Time exclusively via the Internet at www.virtualshareholdermeeting.com/HRTX2021, or at any adjournments or postponements thereof (the “Annual Meeting”), for the following purposes, as more fully described in the accompanying Proxy Statement:

1.

To elect five director nominees named in the accompanying Proxy Statement to serve until the 2022 Annual Meeting of Stockholders and until their successors are duly elected and qualified;

2.

To ratify the appointment of OUM & Co. LLP as our independent registered public accounting firm for the year ending December 31, 2021;

3.

To approve, on an advisory basis, compensation paid to our Named Executive Officers during the year ended December 31, 2020;

4.

To amend the Company’s 2007 Amended and Restated Equity Incentive Plan (the “2007 Plan”) to increase the number of shares of common stock authorized for issuance thereunder from 25,800,000 to 27,800,000;

5.

To amend the Company’s 1997 Employee Stock Purchase Plan, as amended (the “ESPP”) to increase the number of shares of common stock authorized for issuance thereunder from 775,000 to 975,000; and

6.

To transact such other business as may properly come before the Annual Meeting or any adjournments or postponements thereof.

In light of concerns related to the Coronavirus Disease 2019 (“COVID-19”), we made the decision to again conduct a virtual annual meeting of stockholders, which will provide access for all stockholders while safeguarding the health and safety of our stockholders, directors, officers, employees and other stakeholders. Stockholders will be able to attend the Annual Meeting, vote electronically and submit questions during the meeting, all by visiting www.virtualshareholdermeeting.com/HRTX2021. To participate in the virtual Annual Meeting, stockholders of record will need the 16-digit control number included on your Notice of Internet Availability of Proxy Materials, proxy card. If your shares are held in street name and your voting instruction form or Notice of Internet Availability indicates that you may vote those shares through the http://www.proxyvote.com website, then you may access, participate in, and vote at the Annual Meeting with the 16-digit access code indicated on that voting instruction form or Notice of Internet Availability. Otherwise, stockholders who hold their shares in street name should contact their bank, broker, or other nominee (preferably at least five days before the Annual Meeting) and obtain a “legal proxy” in order to be able to attend, participate in, or vote at the Annual Meeting. The meeting webcast will begin promptly at 9:00 a.m. Pacific Time. We encourage you to access the meeting prior to the start time. Online check-in will begin at 8:45 a.m. Pacific Time, and you should allow ample time for the check-in procedures.

Only stockholders of record at the close of business on April 20, 2021 (the “Record Date”) will be entitled to notice of, and to vote at, the virtual Annual Meeting or any adjournments or postponements thereof. A list of stockholders entitled to vote at the Annual Meeting will be available for inspection during the Annual Meeting at www.virtualshareholdermeeting.com/HRTX2021.

BY ORDER OF THE BOARD OF DIRECTORS

 

/s/ David Szekeres

David Szekeres

Executive Vice President, Chief Operating Officer

San Diego, California

April 22, 2021

 


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IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE 2021 ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON JUNE 17, 2021:

The 2021 Proxy Statement and the Annual Report on Form 10-K for the year ended December 31, 2020 are available at: http://www.proxyvote.com.

YOUR VOTE IS IMPORTANT

You are cordially invited to attend the virtual Annual Meeting. Instructions on how to participate in the Annual Meeting and demonstrate proof of stock ownership are included in the accompanying Proxy Statement and posted at http://www.virtualshareholdermeeting.com/HRTX2021. The webcast of the Annual Meeting will be archived for one year after the date of the Annual Meeting at www.virtualshareholdermeeting.com/HRTX2021. You will not be able to attend the Annual Meeting in person. Whether or not you expect to virtually attend the Annual Meeting, you are urged to cast your vote as soon as possible. You may vote your shares via the Internet or via a toll-free telephone number by following the instructions on the Notice of Internet Availability of Proxy Materials, the proxy card or the voting instruction card, as applicable. In addition, if you received paper copies of the proxy materials by mail, you can also vote by mail by following the instructions on the proxy card or the voting instruction card. Submitting a proxy or voting instruction card will not prevent you from attending the Annual Meeting and voting virtually, if you so desire. Please note, however, that if your shares are held of record by a broker, bank or other nominee and you wish to vote at the Annual Meeting, you must obtain from the record holder a proxy issued in your name.

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HERON THERAPEUTICS, INC.

4242 Campus Point Court, Suite 200

San Diego, CA 92121

(858) 251-4400

PROXY STATEMENT

2021 ANNUAL MEETING OF STOCKHOLDERS

QUESTIONS AND ANSWERS

Why have these proxy materials been made available to me?

The enclosed proxy is being solicited on behalf of our Board of Directors (“Board”) for use at the Annual Meeting. The Notice of Internet Availability of Proxy Materials and the proxy materials, including the 2021 Proxy Statement and the Annual Report on Form 10-K for the year ended December 31, 2020, will be made available online at http://www.proxyvote.com and mailed to stockholders, as applicable, on or about May 7, 2021. We encourage stockholders to vote well before the Annual Meeting, even if they plan to attend the Annual Meeting via the Internet (as specified below and in the Notice of Internet Availability of Proxy Materials or the proxy card, as applicable) or by using the toll-free telephone number provided below or in the proxy card, as applicable. In addition, if you received copies of the proxy materials by mail, you can vote by mail by following the instructions on the proxy card. Stockholders who hold our shares in “street name” should refer to the voting instructions form provided by their broker, bank or other nominee for details on how to provide voting instructions to each person. For additional details, see “How can I vote at the Annual Meeting?” below.

Why did I receive a Notice of Internet Availability of Proxy Materials in the mail?

As permitted by rules adopted by the U.S. Securities and Exchange Commission (“SEC”), we are making our proxy materials available to stockholders electronically via the Internet. Accordingly, we are sending the Notice of Internet Availability of Proxy Materials by mail to our stockholders of record containing instructions on how to access the proxy materials and vote by proxy over the Internet or by telephone. All stockholders have the ability to access the proxy materials on the website referred to in the Notice of Internet Availability of Proxy Materials or request the delivery of a printed set of proxy materials. If you received a Notice of Internet Availability of Proxy Materials by mail and would like to receive a printed copy of our proxy materials, you should follow the instructions for requesting such materials included in the Notice of Internet Availability of Proxy Materials.

Who can vote at the Annual Meeting?

Only stockholders of record at the close of business on the Record Date will be entitled to vote at the Annual Meeting. At the close of business on the Record Date, there were 91,674,565 shares of common stock outstanding and entitled to vote.

Stockholder of Record: Shares Registered in Your Name

If at the close of business on the Record Date, your shares were registered directly in your name, then you are a stockholder of record. As a stockholder of record, you may vote electronically during the virtual Annual Meeting or via one of the methods described in the Notice of Internet Availability of Proxy Materials (or in the proxy card if you received a hard or emailed copy of the proxy materials). Whether or not you plan to attend the virtual Annual Meeting, we urge you to vote well before the Annual Meeting to ensure your vote is counted.

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Beneficial Owner: Shares Registered in the Name of a Broker, Bank or Other Agent

If at the close of business on the Record Date, your shares were held, not in your name, but rather in an account at a brokerage firm, bank or other agent, then you are the beneficial owner of shares held in “street name,” and the Notice of Internet Availability of Proxy Materials or the proxy materials, as applicable, are being forwarded to you by your broker, bank or other agent. The broker, bank or other agent holding your account is considered to be the stockholder of record for purposes of voting at the Annual Meeting. As a beneficial owner, you have the right to direct your broker, bank or other agent on how to vote the shares in your account.

How can I attend the Annual Meeting?

You are entitled to attend the Annual Meeting only if you were a stockholder at the close of business on the Record Date, or you hold a valid proxy to vote at the Annual Meeting.

We will be hosting the Annual Meeting via the Internet. You will not be able to attend the Annual Meeting in person. Any stockholder can listen to and participate in the Annual Meeting via the Internet at www.virtualshareholdermeeting.com/HRTX2021. Our Board annually considers the appropriate format of our annual meeting. Our virtual Annual Meeting allows stockholders to submit questions and comments before and during the meeting. After the Annual Meeting, we will spend up to fifteen minutes answering any appropriately submitted stockholder questions that are pertinent to the Company and that comply with the meeting rules of conduct. To the extent time does not allow us to answer all of the appropriately submitted questions, we will answer them in writing on our investor relations website, at https://herontherapeutics.gcs-web.com, soon after the Annual Meeting. If we receive substantially similar questions, we will group such questions together and provide a single response to avoid repetition.

The Annual Meeting webcast will begin promptly at 9:00 a.m. Pacific Time. We encourage you to access the Annual Meeting webcast prior to the start time. Online check-in will begin, and stockholders may begin submitting written questions, at approximately 8:45 a.m. Pacific Time, and you should allow ample time for the check-in procedures.

What do I need in order to be able to participate in the Annual Meeting?

In order to be able to vote your shares, view the list of our stockholders of record, or submit questions during the Annual Meeting, you will need the 16-digit control number included on your Notice of Internet Availability or your proxy card (if you received a printed copy of the proxy materials), or included in the email to you if you received the proxy materials by email. If your shares are held in street name and your voting instruction form or Notice of Internet Availability indicates that you may vote those shares through the http://www.proxyvote.com website, then you may access, participate in, and vote at the Annual Meeting with the 16-digit access code indicated on that voting instruction form or Notice of Internet Availability. Otherwise, stockholders who hold their shares in street name should contact their bank, broker, or other nominee (preferably at least five days before the Annual Meeting) and obtain a “legal proxy” in order to be able to attend, participate in, or vote at the Annual Meeting. You will not be able to attend the Annual Meeting in person.  Instructions on how to connect to the Annual Meeting and participate via the Internet, including how to demonstrate proof of stock ownership, are posted at http://www.virtualshareholdermeeting.com/HRTX2021If you do not have your 16-digit control number, you will be able to access and listen to the Annual Meeting but you will not be able to vote your shares or submit questions during the Annual Meeting.

We will have technicians ready to assist you with any technical difficulties you may have accessing the virtual meeting or submitting questions. If you encounter any difficulties accessing the virtual meeting during the check-in or meeting time, please call the technical support number that will be posted on the Virtual Shareholder Meeting login page.

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Why is the Company holding the Annual Meeting virtually?

Given the success of the virtual meeting we held last year, we are again embracing technology to provide expanded access, improved communication, reduced environmental impact and cost savings for our stockholders and the Company. We believe this is the right choice for Heron, as hosting a virtual meeting enables increased stockholder attendance and participation because stockholders can participate and ask questions from any location around the world, and it provides us an opportunity to actively engage with all stockholders, regardless of size, resources or physical location. Notably, our 2020 Annual Meeting of Stockholders had the most attendees of any annual meeting in the Company’s recent history. We are sensitive to concerns regarding virtual meetings, generally from investor advisory groups and other stockholder rights advocates, who have voiced concerns that virtual meetings may diminish stockholder voice or reduce board accountability. Accordingly, our virtual format is designed to enhance, rather than constrain, stockholder access to and participation in our annual stockholder meeting. For example, through the online stockholder meeting tools in our virtual meeting format, stockholders will be able to communicate with us during the Annual Meeting so that they can ask questions of our Board and management. We are committed to taking all steps necessary to provide our stockholders with the same opportunities to participate at the virtual Annual Meeting as they would at an in-person annual meeting of stockholders. In addition, we do not place restrictions on the type or form of questions that may be asked, although we reserve the right to edit profanity or other inappropriate language for publication. To the extent time does not allow us to answer all of the appropriately submitted questions, we will answer them in writing on our investor relations website, at https://herontherapeutics.gcs-web.com, soon after the Annual Meeting.

Additionally, we believe that hosting a virtual Annual Meeting is especially prudent again this year in light of the ongoing global pandemic resulting from COVID-19 and the related protocols and guidelines that have been put in place by federal, state and local authorities. Holding a virtual Annual Meeting again this year will eliminate the need for stockholders, directors, officers and representatives of our independent registered public accounting firm to travel, convene in a large group, and otherwise be exposed to public settings in connection with the Annual Meeting, all of which could potentially increase the spread of COVID-19.

What am I voting on?

There are five Company proposals scheduled for a vote at the Annual Meeting:

 

Proposal 1: To elect five director nominees named in the accompanying Proxy Statement, to serve until the 2022 Annual Meeting of Stockholders and until their successors are duly elected and qualified;

 

Proposal 2: To ratify the appointment of OUM & Co. LLP as our independent registered public accounting firm for the year ending December 31, 2021;

 

Proposal 3: To approve, on an advisory basis, compensation paid to our Named Executive Officers during the year ended December 31, 2020;

 

Proposal 4: To amend the 2007 Plan to increase the number of shares of common stock authorized for issuance thereunder from 25,800,000 to 27,800,000; and

 

Proposal 5: To amend the ESPP to increase the number of shares of common stock authorized for issuance thereunder from 775,000 to 975,000.

What are my voting choices and what are the Board’s recommendations?

For Proposal 1, you may vote “For” or “Against” or “Abstain” from voting for each director nominee. For Proposals 2 through 5, you may vote “For” or “Against” or “Abstain” from voting.

The Board recommends that you vote “For” each of the director nominees named in Proposal 1 and “For” each of Proposals 2 through 5.


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What if another matter is properly brought before the Annual Meeting?

At this time, the Board of Directors knows of no other matters that will be presented for consideration at the Annual Meeting. However, if any other matter is properly brought before the Annual Meeting, it is the intention of the persons named in the proxy card as “proxies” to vote on those matters in accordance with their best judgment and in their discretion.

How can I vote at the Annual Meeting?

The procedures for voting are as follows:

Stockholder of Record: Shares Registered in Your Name

 

To vote during the Annual Meeting, see the instructions on how to vote while participating in the Annual Meeting via the Internet at http://www.virtualshareholdermeeting.com/HRTX2021.

 

To vote via the Internet, go to www.proxyvote.com, 24 hours per day, 7 days per week. You will need the 16-digit control number included on your Notice of Internet Availability or your proxy card (if you received a printed copy of the proxy materials). Proxies submitted through the Internet must be received by 11:59 p.m. Eastern Time on June 16, 2021.

 

To vote by telephone, call toll free 1-800-690-6903, 24 hours per day, 7 days per week. You will need the 16-digit control number included on your Notice of Internet Availability or your proxy card (if you received a printed copy of the proxy materials). Proxies submitted through the Internet must be received by 11:59 p.m. Eastern Time on June 16, 2021.

 

To vote using the proxy card, simply complete, sign and date the proxy card included with your proxy materials (if you received a hard copy or emailed copy of the proxy materials) and return it promptly in the envelope provided. If you return your signed and dated proxy card to us before the Annual Meeting with your voting selections, we will vote your shares as you direct. Except for votes cast for shares registered in the name of a broker, bank or other agent (as described below), if you return your signed and dated proxy card to us before the Annual Meeting without your voting selections, proxies named in the proxy card will vote your shares in accordance with the Board’s recommendations (as described above). If you received a Notice of Internet Availability of Proxy Materials and would like to request a proxy card by mail, please follow the instructions contained in the Notice of Internet Availability of Proxy Materials.

Beneficial Owner: Shares Registered in the Name of Broker, Bank or Other Agent

If you are a beneficial owner of shares registered in the name of your broker, bank or other agent, you should have received a Notice of Internet Availability of Proxy Materials or a proxy card and voting instructions with the proxy materials from that institution rather than from us. To ensure that your vote is counted, simply follow the instructions in the Notice of Internet Availability of Proxy Materials received from your broker, bank or other agent to vote via the Internet during the Annual Meeting, via the Internet in advance of the Annual Meeting or by telephone or, if you received a proxy card by mail, complete, sign and return the proxy card.

We provide Internet proxy voting to allow you to vote your shares online, with procedures designed to ensure the authenticity and correctness of your proxy vote instructions. However, please be aware that you must bear any costs associated with your Internet access, such as usage charges from Internet access providers.

How many votes do I have?

On each matter to be voted on, you have one vote for each share of common stock you own as of the close of business on the Record Date for the Annual Meeting.

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Who is paying for this proxy solicitation?

We will pay for the entire cost of soliciting proxies. In addition to the mailed Notices of Internet Availability of Proxy Materials and/or proxy materials, our directors and employees may also solicit proxies in person, by telephone or by other means of communication. Directors and employees will not be paid any additional compensation for soliciting proxies. We may also reimburse brokerage firms, banks and other agents for the cost of forwarding proxy materials to beneficial owners.

What does it mean if I receive more than one Notice of Internet Availability of Proxy Materials or proxy card?

If you receive more than one Notice of Internet Availability of Proxy Materials or proxy card, your shares are registered in more than one name or are registered in different accounts. Please follow the voting instructions in each Notice of Internet Availability of Proxy Materials, or complete, sign and return each proxy card to ensure that all of your shares are voted.

Can I revoke or change my vote after submitting my proxy?

Yes. You can revoke your proxy and change your vote at any time before the applicable vote deadlines for the Annual Meeting. If you are the record holder of your shares, you may revoke your proxy in any one of four ways:

 

you may submit another properly completed proxy with a later date;

 

you may vote again by Internet or telephone at a later time;

 

you may send a written notice that you are revoking your proxy to our Corporate Secretary at 4242 Campus Point Court, Suite 200, San Diego, CA 92121; or

 

you may attend the virtual Annual Meeting and vote electronically during the Annual Meeting (however, simply attending the virtual Annual Meeting will not, by itself, revoke your proxy or change your vote).

Your most current proxy card or Internet proxy is the one that is counted.

If your shares are held by your broker, bank or other agent, you should follow the instructions provided by them.

How can I submit a proposal (including a director nomination) for next year’s annual meeting?

Under the rules of the SEC, stockholders who wish to submit proposals for inclusion in the Proxy Statement for the 2022 Annual Meeting of Stockholders must submit such proposals to our Corporate Secretary so as to be received by us at 4242 Campus Point Court, Suite 200, San Diego, CA 92121, by close of business on or before January 7, 2022.

If a stockholder intends to make a nomination or present a proposal for other business (other than pursuant to Rule 14a-8 of the Securities Exchange Act of 1934 (the “Exchange Act”)) at the 2022 Annual Meeting of Stockholders, the stockholder must deliver written notice to our Corporate Secretary at the address provided above not earlier than February 17, 2022 and not later than March 19, 2022. Such nomination(s) or proposal(s) may or may not be included in the Proxy Statement. If the date of the 2022 Annual Meeting of Stockholders changes by more than 30 calendar days from the anniversary of the 2021 Annual Meeting of Stockholders, then stockholder notice must be received not later than the close of business on the later of: (i) the 90th calendar day prior to such annual meeting; or (ii) the 10th calendar day following the day on which public disclosure of the date of such meeting is first made.

Any stockholder proposal must be a proper matter for stockholder action and must comply either with Rule 14a-8 of the Exchange Act or the terms and conditions set forth in our bylaws, as applicable.

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What are “broker non-votes”?

If your shares are held by your broker, bank or other agent as your nominee (that is, in “street name”), you will need to obtain a proxy form from the institution that holds your shares and follow the instructions included on that form regarding how to instruct your broker, bank or other agent to vote your shares. If you do not give instructions to your broker, bank or other agent, they can vote your shares with respect to “routine” items, but not with respect to “non-routine” items. On non-routine items for which you do not give instructions to your broker, bank or other agent, the shares will be treated as broker non-votes. The only “routine” proposal that is being presented at this Annual Meeting is Proposal 2 (ratification of our independent registered public accounting firm).

How are votes counted and how many votes are needed to approve each proposal?

Votes will be counted by the inspector of elections appointed for the Annual Meeting.

 

Proposal 1: Directors, in uncontested elections, will be elected by a majority of all votes properly cast with respect to their election by stockholders present online at the Annual Meeting or by proxy. Election of directors is not considered a routine matter on which a broker or other nominee is empowered to vote. Therefore, if the beneficial owner does not give a broker specific instructions, the beneficially owned shares may not be voted on the election of directors and will not be counted in determining the number of shares necessary for approval. Abstentions and broker non-votes will have no effect on the election of the directors.

 

Proposal 2: The proposal to ratify the appointment of OUM & Co. LLP as our independent registered public accounting firm for the year ending December 31, 2021 requires the affirmative vote of a majority of the votes cast, provided a quorum is established. Abstentions will have no effect on the outcome of this proposal because they are not considered to be votes “cast” under Delaware law. Ratification of the selection of OUM & Co. LLP is considered a routine matter on which a broker or other nominee is empowered to vote. If you are a beneficial owner and do not provide specific voting instructions to your bank or broker, the institution that holds your shares may vote your shares on the ratification of the appointment of OUM & Co. LLP as our independent registered public accounting firm for the year ending December 31, 2021.

 

Proposal 3: The proposal to approve, on an advisory basis, the compensation paid to our Named Executive Officers requires the affirmative vote of a majority of the votes cast, provided a quorum is established. Approval, on an advisory basis, of the compensation paid to our Named Executive Officers is not considered a routine matter on which a broker or other nominee is empowered to vote. Therefore, if the beneficial owner does not give broker specific instructions, the beneficially owned shares may not be voted on the proposal. Abstentions and broker non-votes will have no effect on the outcome of this proposal.

 

Proposal 4: The proposal to amend our 2007 Plan requires the affirmative vote of a majority of the votes cast at the Annual Meeting, provided a quorum is established. Approval of the amendment to our 2007 Plan is not considered a routine matter on which a broker or other nominee is empowered to vote. Therefore, if the beneficial owner does not give broker specific instructions, the beneficially owned shares may not be voted on the proposal. Abstentions and broker non-votes will have no effect on the outcome of this proposal.

 

Proposal 5: The proposal to amend our ESPP requires the affirmative vote of a majority of the votes cast at the Annual Meeting, provided a quorum is established. Approval of the amendment to our ESPP is not considered a routine matter on which a broker or other nominee is empowered to vote. Therefore, if the beneficial owner does not give broker specific instructions, the beneficially owned shares may not be voted on the proposal. Abstentions and broker non-votes will have no effect on the outcome of this proposal.


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What is the quorum requirement?

A quorum of stockholders is necessary to hold a valid meeting. A quorum will be present if at least a majority of the shares issued and outstanding and entitled to vote at the Annual Meeting as of the close of business on the Record Date are represented by stockholders present online at the Annual Meeting or by proxy. At the close of business on the Record Date, there were 91,674,565 shares outstanding and entitled to vote.

Abstentions and broker non-votes will be counted towards the quorum requirement. If there is no quorum, a majority of the votes present at the Annual Meeting may adjourn the Annual Meeting to another date.

How can I find out the results of the voting at the Annual Meeting?

Preliminary voting results will be announced during the Annual Meeting. In addition, final voting results will be published in a Current Report on Form 8-K that we expect to file within four business days after the Annual Meeting. If final voting results are not available to us in time to file a Current Report on Form 8-K within four business days after the Annual Meeting, we intend to file a Form 8-K to publish preliminary results and, within four business days after the final results are known to us, file an additional Form 8-K to publish the final results.

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INFORMATION CONCERNING THE BOARD OF DIRECTORS

Certain information regarding each of our nominees, including each nominee’s age, experience, qualifications, attributes and skills that led the Board to conclude that the individual should serve on the Board and each nominee’s principal occupation and directorships during the past five years, is set forth below:

 

Name

 

Age

 

 

Position

 

Director

Since

 

Barry Quart, Pharm.D.

 

 

64

 

 

Chairman and Chief Executive Officer

 

 

2012

 

Stephen Davis

 

 

60

 

 

Director

 

 

2019

 

Craig Johnson

 

 

59

 

 

Director

 

 

2014

 

Kimberly Manhard

 

 

61

 

 

Executive Vice President, Drug Development and Director

 

 

2019

 

Christian Waage

 

 

54

 

 

Director

 

 

2016

 

Barry Quart, Pharm.D. has served as a director of Heron since 2012. Dr. Quart was appointed Chief Executive Officer in 2013, President and Chief Executive Officer in 2019 and was named Chairman of the Board in October 2020. He has more than 25 years of experience serving in leadership positions in biotechnology and pharmaceutical companies and developing innovative pharmaceutical products. In 2006, Dr. Quart co-founded Ardea Biosciences, Inc. and served as its President and Chief Executive Officer from its inception through 2013, and as a director through its acquisition by AstraZeneca PLC in 2012. Previously, he was with Pfizer Inc. as Senior Vice President of Pfizer Global Research and Development, and the director of Pfizer’s La Jolla Laboratories. Prior to Pfizer’s acquisition of the Warner-Lambert Company, Dr. Quart was President of Research and Development at Agouron Pharmaceuticals, Inc., a division of the Warner-Lambert Company. He joined Agouron in 1993 and was instrumental in the development and registration of Viracept® (nelfinavir). Dr. Quart also served as a director of Synageva Biopharma Corp. from 2012 through its acquisition by Alexion Pharmaceuticals, Inc. in 2015. Since 2015, he has served as a director of Kiniksa Pharmaceuticals, Ltd., a biopharmaceutical company. Dr. Quart received a Pharm.D. degree from the University of California, San Francisco. The Board has concluded that Dr. Quart should serve as a director and Chairman based on his experience in senior management, as a director and with other biotechnology and pharmaceutical companies and his prior drug development experience.

Stephen Davis has served as a director of Heron since 2019. Mr. Davis has served as Chief Executive Officer and as a director of ACADIA Pharmaceuticals Inc. since 2015 and, previously, as Executive Vice President, Chief Financial Officer and Chief Business Officer from 2014 to 2015. He has more than 25 years of experience in the biopharmaceutical industry. Since 2015, Mr. Davis has served as a director of Bellicum Pharmaceuticals, Inc. From 2012 to 2015, he served as a director, and, from 2013 to 2014, he served as Executive Vice President, Chief Operating Officer, of Heron. Mr. Davis also served as a director of Synageva Biopharma Corp. from 2011 through its acquisition by Alexion Pharmaceuticals, Inc. in 2015. From 2013 to 2014, he served as a director of Furiex Pharmaceuticals, Inc. through its acquisition by Forest Laboratories, Inc. in 2014. Mr. Davis served as Executive Vice President and Chief Operating Officer of Ardea Biosciences, Inc. from 2010 through its acquisition by AstraZeneca PLC in 2012. Previously, he held various positions at Neurogen Corporation, most recently serving as President and Chief Executive Officer. Prior to Neurogen, Mr. Davis practiced as a corporate and securities attorney at a Wall Street law firm and practiced as a certified public accountant at a major accounting firm. He received a J.D. degree from Vanderbilt University and a B.S. degree in accounting from Southern Nazarene University. The Board has concluded that Mr. Davis should serve as a director based on his experience in senior management, as a director with other biotechnology and pharmaceutical companies and in legal, finance and operations matters.

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Craig Johnson has served as a director of Heron since 2014. Mr. Johnson has more than 25 years of experience serving in senior financial management roles and governing corporations, primarily in the biotechnology industry. Since 2017, he has served as a director of Odonate Therapeutics, Inc. Since 2013, Mr. Johnson has served as a director of La Jolla Pharmaceutical Company and a director of Mirati Therapeutics, Inc. He served as a director of Decipher Biosciences, Inc. from 2015 to 2018, a director of Adamis Pharmaceuticals Corporation from 2011 to 2014 and a director of Ardea Biosciences, Inc. from 2008 until its acquisition by AstraZeneca PLC in 2012. From 2011 to 2012, he served as Chief Financial Officer of PURE Bioscience, Inc., and from 2010 to 2011, Mr. Johnson served as Senior Vice President and Chief Financial Officer of NovaDel Pharma Inc. From 2004 through its acquisition by Raptor Pharmaceuticals Corp. in 2009, he served as Vice President and Chief Financial Officer of TorreyPines Therapeutics, Inc. and, from 2009 to 2010, as Vice President of a wholly-owned subsidiary of Raptor Pharmaceuticals Corp. From 1994 to 2004, Mr. Johnson held various positions at MitoKor, Inc., ultimately serving as Chief Financial Officer and Senior Vice President of Operations. He practiced as a Certified Public Accountant with Price Waterhouse, and received a B.B.A. degree in accounting from the University of Michigan-Dearborn. The Board has concluded that Mr. Johnson should serve as a director based on his experience serving as a director of biotechnology companies and his expertise in financial management.  

Kimberly Manhard has served as a director of Heron since 2019 and as our Executive Vice President, Drug Development since 2016, after serving as a director in 2014 and 2015. Ms. Manhard has more than 25 years of experience in drug development, regulatory affairs and pharmaceutical operations. From 2008 to 2016, she served as the Senior Vice President of Regulatory Affairs and Development Operations at Ardea Biosciences, Inc. In her role at Ardea, Ms. Manhard was instrumental in the development and 2015 regulatory approval of Zurampic® (lesinurad). Prior to joining Ardea in 2006, she was President of her own consultancy firm, Vice President of Regulatory Affairs for Exelixis, Inc. and held multiple regulatory positions at Agouron Pharmaceuticals, Inc., a division of the Warner-Lambert Company, supporting development and commercialization of anticancer and antiviral products, including Viracept® (nelfinavir). Ms. Manhard was also previously with Bristol-Myers Squibb Company in regulatory affairs, responsible for oncology compounds, including Taxol® (paclitaxel) and infectious disease compounds, including Videx® (didanosine) and Zerit® (stavudine). She began her career in clinical research with Eli Lilly and Company and G.H. Besselaar Associates (Covance Inc.). Since 2020, Ms. Manhard has also served as a director of InhibRx, Inc., which is focused on the research and development of new treatments for cancer. Ms. Manhard is a member of the board of trustees for the Fleet Science Center. She received a B.S. degree in zoology and a B.A. degree in French from the University of Florida. The Board has concluded that Ms. Manhard should serve as a director based on her experience in senior management, as a director with other biotechnology and pharmaceutical companies and her experience in drug development, regulatory affairs and pharmaceutical operations.

Christian Waage has served as a director of Heron since 2016. Mr. Waage has more than 20 years of regulatory, legal and financial transaction experience primarily in the biotechnology industry. Since 2017, he has served as Executive Vice President and General Counsel of Gossamer Bio, Inc., a publicly traded biotechnology company. From 2013 to 2016, Mr. Waage held various positions at Receptos, Inc., a wholly owned subsidiary of Celgene Corporation, most recently serving as Managing Director. Prior to its acquisition by Celgene Corporation in 2015, he served as Senior Vice President and General Counsel of Receptos, Inc. From 2012 through its acquisition by Vista Equity Partners Management, LLC in 2013, Mr. Waage served as Vice President, General Counsel and Corporate Secretary at Websense, Inc. From 2008 through its acquisition by AstraZeneca PLC in 2012, he served as Vice President, General Counsel and Corporate Secretary of Ardea Biosciences, Inc. Prior to 2008, Mr. Waage served as a partner at DLA Piper LLP. He received a J.D. from the University of San Diego School of Law and a B.A. degree in economics from the University of California, San Diego. The Board has concluded that Mr. Waage should serve as a director based on his experience in regulatory, legal and finance matters.

12


INFORMATION CONCERNING EXECUTIVE OFFICERS AND KEY EMPLOYEES

Executive officers are elected by our Board and hold office until the earlier of resignation, removal or the appointment and election of a successor.

Our executive officers and their ages and positions as of the Record Date are as follows:

 

Name

 

Age

 

Position

 

Officer

Since

Barry Quart, Pharm.D.

 

64

 

Chairman and Chief Executive Officer

 

2013

John Poyhonen

 

60

 

President and Chief Commercial Officer

 

2019

Kimberly Manhard

 

61

 

Executive Vice President, Drug Development and Director

 

2016

David Szekeres

 

47

 

Executive Vice President, Chief Operating Officer

 

2020

Lisa Peraza

 

44

 

Vice President, Chief Accounting Officer

 

2020

 

 

 

 

 

 

 

The backgrounds for each of Dr. Quart and Ms. Manhard are described above under “Information Concerning the Board of Directors.”

John Poyhonen was appointed Executive Vice President, Chief Commercial Officer in 2019 and was promoted to President and Chief Commercial Officer in October 2020. He served as a director of Heron from January 2014 until August 2020. He has more than 25 years of experience serving in leadership positions in biotechnology and pharmaceutical companies and commercializing innovative products. From 2014 through its acquisition by Firmenich, Inc. in November 2018, Mr. Poyhonen was the President, Chief Executive Officer and a director of Senomyx, Inc. He joined Senomyx, Inc. in 2003 as Vice President and Chief Business Officer; was promoted in 2004 to Vice President and Chief Financial and Business Officer; was named Senior Vice President, Chief Financial and Business Officer in 2006; was promoted to President and Chief Operating Officer in 2009; and promoted to President and Chief Executive Officer in 2014. From 1996 to 2003, Mr. Poyhonen served in various sales and marketing positions for Agouron Pharmaceuticals, Inc., most recently as Vice President of National Sales. Prior to holding this position, he served as Vice President of Marketing and Vice President of National Accounts. Mr. Poyhonen was previously a director of Ardea Biosciences, Inc. from 2007 through its acquisition by AstraZeneca PLC in 2012. He received a B.A. degree in marketing from Michigan State University and an M.B.A. degree from the University of Kansas.

David Szekeres joined Heron as Senior Vice President, General Counsel, Business Development and Corporate Secretary in 2016. Mr. Szekeres was promoted to Chief Legal, Business and Administrative Officer in 2019 and was promoted to Executive Vice President, Chief Operating Officer in October 2020. Mr. Szekeres has more than 20 years of legal and financial experience, primarily in the biotechnology industry. From 2014 to 2015, he served as General Counsel, Chief Business Officer, Principal Financial and Accounting Officer and Corporate Secretary at Regulus Therapeutics Inc. In that role, Mr. Szekeres oversaw the company’s business, financial and legal responsibilities as it developed into a clinical-stage corporation. From 2008 through its acquisition by Thermo Fisher Scientific, Inc. in 2014, he served as Head of Mergers and Acquisitions, Governance and Securities and Assistant Corporate Secretary at Life Technologies Corporation. From 2001 to 2006, Mr. Szekeres served as Corporate Attorney at a number of law firms, including O’Melveny & Myers LLP and Latham & Watkins LLP. Prior to 2001, he served as Senior Associate in Investment Banking at Robertson Stephens. Mr. Szekeres is a member of the board of trustees for the Sanford Burnham Prebys Medical Institute. He received a B.A. degree from the University of California, Irvine and a J.D. degree from Duke University School of Law.


13


Lisa Peraza joined Heron as Senior Director, Controller in 2014. Ms. Peraza was promoted to Vice President, Controller in 2019 and promoted to Vice President, Chief Accounting Officer in October 2020. She has more than 20 years of finance and accounting experience, primarily in the biotechnology industry. From June 2008 to March 2014, Ms. Peraza held key finance and accounting positions at Ardea Biosciences, Inc., most recently serving as Executive Director, Controller. From June 2001 to May 2008, she held key accounting positions at La Jolla Pharmaceutical Company. Ms. Peraza began her career with KPMG LLP. She received a B.A. degree from the University of California, Santa Barbara and is licensed as a C.P.A. in the State of California.

Our other key employees and their ages and positions as of the Record Date are as follows:

 

Name

 

Age

 

Position

 

Key Employee

Since

Thomas Ottoboni, Ph.D.

 

62

 

Chief Scientific Officer and Senior Vice President, Pharmaceutical and Translational Sciences

 

2012

Chris Storgard, M.D.

 

55

 

Chief Medical Officer

 

2018

Michael Mathews

 

58

 

Senior Vice President, Pain Franchise

 

2017

John Arthur, Ph.D.

 

55

 

Vice President, Manufacturing and Supply

 

2017

Sean Ristine

 

51

 

Vice President, Human Resources

 

2015

Thomas Ottoboni, Ph.D. joined Heron as Vice President of Pharmaceutical Development in 2012. Dr. Ottoboni was promoted to Senior Vice President of Pharmaceutical and Preclinical Research and Development in 2014 and promoted to Chief Scientific Officer and Senior Vice President of Pharmaceutical and Translational Sciences in 2019. He has more than 20 years of drug development experience. From 2010 until 2011, Dr. Ottoboni was Vice President of Research and Development at Talima Therapeutics, Inc., where he worked on the development of a drug delivery implant to treat onychomycosis. From 1996 to 2008, he served as Executive Vice President of Strategy and Operations at POINT Biomedical Corp., where he developed several imaging and drug delivery systems. From 1994 through 1996, Dr. Ottoboni served as Manager of Systems Development and Drug Delivery Research for InSite Vision Inc., where he developed ophthalmic pharmaceutical delivery systems. He previously served as Director of Drug Delivery at Vitaphore Corp. Dr. Ottoboni is an inventor on more than 20 U.S. patents in organic and macromolecular chemistry. He received a B.S. degree in chemistry and a Ph.D. in organic chemistry from the University of California, Berkeley.

Chris Storgard, M.D. joined Heron as Senior Vice President, Clinical Development in 2018 and was promoted to Chief Medical Officer in 2019. Dr. Storgard has more than 25 years of experience in clinical research. From 2016 to 2018, he served as Chief Medical Officer at Fate Therapeutics. From 2013 to 2016, Dr. Storgard served as Vice President of Clinical Research and Development at Ardea Biosciences, Inc., leading the ZURAMPIC® global clinical program to successful U.S. and European regulatory approvals. He also held various senior leadership positions at Biogen-Idec Ltd. and Amgen Inc., leading biologic and small molecule development programs within inflammation and oncology. From 2001 to 2004, Dr. Storgard served as Senior Associate Consultant, Division of Rheumatology, and Assistant Professor and Member of the Molecular Medicine Program at the Mayo School of Medicine, Mayo Clinic in Minnesota. He received his B.S. degree in biology and his M.D. from the University of Saskatchewan. Dr. Storgard completed a fellowship in rheumatology at Scripps Clinic and Research Center, San Diego.

Michael Mathews joined Heron as Senior Vice President of the Pain Franchise in 2017. Mr. Mathews has more than 25 years of life sciences experience in sales and marketing. From 2015 to 2017, he served as the Vice President for Acute Care at Mallinckrodt Pharmaceuticals. From 2012 to 2014, Mr. Mathews served as Senior Vice President International at KCI, an Acelity L.P. Inc. company. He also held various leadership positions at Bayer AG, including Senior Vice President North America for Diabetes Care and Head of Hematology for the Specialty Medicine Division, where he led the sales and marketing efforts of Bayer Aspirin, both in the U.S. and globally. Mr. Mathews was a member of Bayer AG’s Global Leadership Circle, which consisted of the top 250 executives globally. He completed Stanford University’s graduate school executive program. He also holds an MBA from Thunderbird American School of International Management in international marketing, and a B.S. in international economics, finance and commerce from the Edmund A. Walsh School of Foreign Service at Georgetown University.


14


John Arthur, Ph.D. joined Heron as Vice President of Manufacturing and Supply in 2017. Dr. Arthur has more than 20 years of experience in pharmaceutical manufacturing. From 2013 to 2016, he was Vice President of Manufacturing and CMC at Mast Therapeutics, Inc., where he led all CMC activities for multiple Phase 2 and Phase 3 clinical programs. From 2012 to 2013, Dr. Arthur was Senior Director of Manufacturing at Auspex Pharmaceuticals, Inc. Prior to his role at Auspex, he held several positions of increasing responsibility at various biopharmaceutical companies, including Cadence Pharmaceuticals, Inc., Kanisa Pharmaceuticals, Inc., Salmedix, Inc., Prometheus Laboratories Inc., Maxim Pharmaceuticals, Inc. and Ionis Pharmaceuticals, Inc. Dr. Arthur received a B.S. in Biochemistry from Western Washington University, a Ph.D. in organic chemistry from the University of South Carolina, Columbia and conducted his postdoctoral research at Michigan State University.

Sean Ristine joined Heron as Senior Director of Human Resources in 2014 and was promoted to Vice President of Human Resources in 2015. Mr. Ristine has more than 20 years of experience in human resources and business leadership. From 2009 to 2014, he held key Human Resources positions at Cadence Pharmaceuticals, Inc., most recently serving as Senior Director of Human Resources where he was instrumental in that function as Cadence grew to a commercial-stage company with more than 200 employees located throughout the U.S. From 2004 to 2009, Mr. Ristine held Human Resources management roles of increasing responsibility at Kyocera Wireless Corp., including Director of Human Resources and Facilities. From 1995 to 2004, he held positions at Kyocera America, Inc., including Manager of Human Resources. Mr. Ristine received a B.S. degree in Business and Organization Behavior from Brigham Young University and an M.B.A. degree with an emphasis in Human Resource Management from San Diego State University.

There are no family relationships among any of our directors or executive officers.

15


CORPORATE GOVERNANCE

Our Board met seven times during the year ended December 31, 2020. Each member of the Board attended 100% of the aggregate number of Board and Board committee meetings held during 2020. We have a policy of encouraging all directors to attend the Annual Meeting; three of the seven then-serving directors attended the 2020 Annual Meeting of Stockholders.

Board Independence

On an annual basis, the Board reviews the independence of all directors in light of each director’s (or any family member’s, if applicable) affiliations with the Company and members of management, as well as significant holdings of the Company’s securities. The Board uses the definition of independence from The Nasdaq Stock Market (“Nasdaq”) listing standards to assess independence of our directors. The Nasdaq rules have objective tests and a subjective test for determining who is an “independent director.” Under the objective tests, a director cannot be considered independent if:

 

The director is, or at any time during the past three years was, an employee of the Company;

 

The director, or a family member of the director, accepted any compensation from the Company in excess of $120,000 during any period of 12 consecutive months within the three years preceding the independence determination (subject to certain exclusions, including, among other things, compensation for Board or Board committee service);

 

A family member of the director is, or at any time during the past three years was, an executive officer of the Company;

 

The director, or a family member of the director, is a partner in, a controlling stockholder of or an executive officer of an entity to which the Company made, or from which the Company received, payments in the current or any of the past three fiscal years that exceeded 5% of the recipient’s consolidated gross revenue for that year, or $200,000, whichever was greater (subject to certain exclusions);

 

The director, or a family member of the director, is employed as an executive officer of an entity for which at any time during the past three years, any of the executive officers of the Company served on the compensation committee of such other entity; or

 

The director, or a family member of the director, is a current partner of the Company’s outside auditor, or at any time during the past three years was a partner or employee of the Company’s outside auditor, and who worked on the Company’s audit.

The subjective test states that an independent director must be a person who lacks a relationship that, in the opinion of the Board, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. The Board has not established categorical standards or guidelines to make these subjective determinations, but considers all relevant facts and circumstances. Our Board has determined that Messrs. Davis, Johnson and Waage are “independent directors” as defined by Nasdaq rules. Dr. Quart and Ms. Manhard are not deemed to be independent under Nasdaq rules by virtue of their current employment with the Company. Kevin Tang, who served as a director until August 4, 2020, was determined to be independent under Nasdaq rules during the time he served on the Board. John Poyhonen, who served as a director until August 4, 2020, was not deemed to be independent under Nasdaq rules due to his employment with the Company.

16


In addition to the Board-level standards for director independence, the directors who serve on the Audit Committee each satisfy standards established by Nasdaq and the SEC, as no member of the Audit Committee accepts directly or indirectly any consulting, advisory or other compensatory fee from the Company other than their director compensation, or otherwise has an affiliate relationship with the Company. Similarly, the members of the Compensation Committee each qualify as independent under Nasdaq standards. Under these standards, the Board considered that none of the members of the Compensation Committee accept directly or indirectly any consulting, advisory or other compensatory fee from the Company other than their director compensation, and that none have any affiliate relationships with the Company or other relationships that would impair the director’s judgment as a member of the Compensation Committee.

Board Committees

Audit Committee. The Audit Committee is composed of three directors: Messrs. Davis, Johnson and Waage. The Audit Committee is responsible for appointing, overseeing and replacing, if necessary, our independent registered public accounting firm and for evaluating its work. The Audit Committee also assists the Board in overseeing the integrity of our financial statements and accounting and financial reporting processes, compliance with legal and regulatory requirements, the independent registered public accounting firm’s qualifications and independence and the performance of the Company’s independent registered public accounting firm and internal audit function. During 2020, the Audit Committee received written disclosures from and communicated with the independent registered public accounting firm; met with management and the independent registered public accounting firm to discuss our financial statements; met with the independent registered public accounting firm to discuss matters that may affect our financial statements; approved related-party transactions, if any; provided oversight of risk management, including oversight of cybersecurity risks and risks related to environmental, social and governance matters; and approved professional services provided to us by the independent public accountants. The Audit Committee, together with the Board, was also responsible for reviewing our plans for providing appropriate financial resources to sustain our operations, including review of our strategic corporate plan and annual operating budget. The Board has determined that, during 2020, all members of the Audit Committee satisfied applicable independence standards promulgated by Nasdaq and the SEC, and the Board has determined that Mr. Johnson qualifies as an “audit committee financial expert” (as the SEC has defined such term in Item 407 of Regulation S-K). We have adopted an Audit Committee charter, which is available at www.herontx.com. The Audit Committee met four times during the year ended December 31, 2020.

Compensation Committee. The Compensation Committee is composed of three directors: Messrs. Davis, Johnson and Waage. The Compensation Committee is responsible for overseeing the Company’s compensation philosophy generally and advising the Board regarding the compensation of the Board, the Chief Executive Officer, and the other executive officers of the Company. The Compensation Committee seeks to align our compensation practices with sound fiscal policy and enable the Company to attract and motivate qualified and highly skilled personnel, and is responsible for overseeing the Company’s management resources, succession planning, and management development activities. In 2020, the Compensation Committee administered our benefit and equity incentive plans, and made recommendations to the Board regarding the review and administration of all compensation arrangements for executive officers (including the Chief Executive Officer) and the review and establishment of general policies relating to the compensation and benefits of our officers and employees for the year ended December 31, 2020. The Compensation Committee also reviewed and approved corporate goals for our executive officers and evaluated their performance in light of these goals, and reviewed and made recommendations to the Board regarding the compensation paid to the non-employee directors. Subject to applicable laws, the Compensation Committee may form and delegate authority to subcommittees, each consisting of one or more of its members, with such powers as the Compensation Committee confers. The Board has determined that, during 2020, all members of the Compensation Committee satisfied applicable Nasdaq independence standards. We have adopted a Compensation Committee charter, which is available at www.herontx.com. The Compensation Committee met three times during the year ended December 31, 2020.

17


Governance Committee. The Nominating and Corporate Governance Committee (Governance Committee”), is composed of three directors: Messrs. Davis, Johnson and Waage. The Governance Committee is responsible for setting a process for identifying and evaluating nominees, assessing the qualifications, contributions and independence of incumbent directors, and recommending a slate of director nominees to be proposed by the Board to the stockholders (or any director nominees to be elected by the Board to fill interim vacancies), consistent with the criteria approved by the Board. The Governance Committee also is responsible for establishing and maintaining a policy under which the Company’s stockholders may recommend a candidate to the Governance Committee for consideration for nomination as a director. Procedures for the consideration of director nominees recommended by stockholders are set forth below. In addition, the Governance Committee is responsible for overseeing succession planning for the Board and key leadership roles on the Board and its committees, as well as recommending directors for membership on Board committees. The Governance Committee also is responsible for reviewing and recommending updates to our Code of Ethics and Business Conduct as well as any written corporate governance guidelines. The Board has determined that, during 2020, all members of the Governance Committee satisfied applicable Nasdaq independence standards. We have adopted a Governance Committee charter, which is available at www.herontx.com. The Governance Committee met one time during the year ended December 31, 2020.

Compensation Committee Interlocks and Insider Participation

During the year ended December 31, 2020, none of our executive officers served as a member of the Board of Directors of another entity where such entity’s executive officers served on our Board.

Board Leadership Structure

Our bylaws provide our Board with the flexibility to combine or separate the positions of Chairman of the Board and Chief Executive Officer to reflect the Company’s evolving needs and strategy, changes in our Board’s composition and leadership needs, as well as other factors, including the views of our stockholders and other stakeholders. Barry Quart, Pharm. D., our Chief Executive Officer, currently serves as the Chairman of our Board, a position he has held since October 2020. Craig Johnson currently serves as our lead independent director. Our Board regularly reviews its leadership structure to evaluate whether the structure remains appropriate for the Company.  Our Board has concluded that our current board leadership structure is appropriate and in the best interests of the Company of its stockholders at this time as the structure allows Dr. Quart to effectively execute the Company’s strategic priorities and lead the Board and empowers Mr. Johnson to provide independent Board oversight.

Director Nomination

Criteria for Board Membership

The Governance Committee is responsible for assessing the appropriate balance of experience, skills and other characteristics required of our directors. Nominees for director are selected based on their experience, knowledge, integrity, understanding of our business environment, specific skills and perspectives they may possess that are helpful to the Company and the willingness to devote adequate time to Board duties. The Governance Committee uses the same selection criteria regardless of whether the candidate has been recommended by a stockholder or identified by the Board. In selecting candidates to recommend to the Board for appointment or re-election to the Board, the Governance Committee considers the current composition of the Board and the attributes and capabilities of the current directors in order to achieve appropriate balance of experience, skills and other characteristics. The Governance Committee also considers potential independence under the rules of Nasdaq, with the additional objective that at least one director qualifies as an “audit committee financial expert” under the rules of the SEC. When evaluating a candidate for our Board, the Governance Committee does not assign specific weight to any of these factors, nor does the Governance Committee believe that all of the criteria must necessarily apply to every candidate. At minimum, a director’s qualifications and attributes, in light of the above-mentioned criteria, are considered each time the director is nominated or re-nominated for Board membership.

18


Board Diversity

While we do not have a formal written policy regarding diversity in identifying director candidates, the Company believes that a Board comprising directors with diverse backgrounds, experiences, skills and perspectives contributes to overall Board effectiveness and improves Board decision making. The Governance Committee is committed to continuing to enhance the Board’s diversity by identifying potential director candidates with varied attributes and perspectives. Accordingly, the Governance Committee actively considers diversity in its development of the pool from which it identifies qualified director candidates who possess the experience and skills desired for our Board. The Governance Committee looks to incorporate diversity into the Board across a broad spectrum of factors, including race, gender, ethnicity, skills, experiences, specific operational experience and viewpoints, all with a view to identify candidates that can assist the Board with the performance of is governance and oversight role, in light of the Company’s strategy and evolving needs. The Governance Committee believes that our current Board reflects a diverse mix of directors on a number of these factors. The Governance Committee evaluates the diversity of the Board as part of the annual nomination process and assesses the effectiveness of its approach to Board diversity as part of the Board and committee evaluation process.

Stockholder Recommendations

It is the Governance Committee’s policy, as described below, to consider written recommendations from stockholders for nominees for director. The Governance Committee considers persons recommended by our stockholders in the same manner as a nominee recommended by our Board members, management or a third-party executive search firm. Any such recommendations should be submitted to the Governance Committee, c/o the Secretary, and should include the following information: (i) all information relating to such nominee that is required to be disclosed pursuant to Regulation 14A under the Exchange Act (including such person’s written consent to being named in the Proxy Statement as a nominee and to serving as a director, if elected); (ii) the names and addresses of the stockholders making the nomination and the number of shares of our common stock which are owned beneficially and of record by such stockholders; and (iii) appropriate biographical information and a statement as to the qualification of the nominee. Stockholders seeking to recommend a prospective nominee should follow the instructions under the heading “Communications with Directors” below. The Board did not receive any stockholder recommendations during the year ended December 31, 2020.

Process for Identifying and Evaluating Nominees

The Board believes we are well served by our current directors who provide the Board with experience, skills and characteristics that the Board has determined meet its requirements with respect to experience, knowledge, integrity, understanding of our business environment, specific skills that are helpful to the Company and the willingness to devote adequate time to Board duties. The Board, following the recommendation of our Governance Committee, determined that the five director nominees, all of whom were elected at our 2020 Annual Meeting of Stockholders, are best-suited to continue to serve our needs, given our Company’s current anticipated activities.

Oversight of Risk Management

Our Board is responsible for oversight of our risk management policies and procedures. We are exposed to a number of risks, including financial risks, strategic, operational and commercial risks and risks relating to regulatory and legal compliance. The Board will regularly discuss with management our major risk exposures and the steps management has taken to monitor and control such exposures, including the guidelines and policies to govern the process by which risk assessment and risk management are undertaken, and highlighting any new risks that may have arisen since they last met. The Board manages exposure risks within various areas including: (i) risks relating to our employment policies, executive compensation plans and arrangements; (ii) financial risks and taking appropriate actions to help ensure quality financial reporting and appropriately conservative investment practices; (iii) risks associated with the independence of the Board and potential conflicts of interest; (iv) commercial risks; (v) cybersecurity risks; and (vi) risks related to environmental, social and governance matters. The Audit Committee reviews policies with respect to risk assessment and risk management and reviews with the Company’s Chief Operating Officer, who would also consult with outside counsel as appropriate, any legal matter that could have a significant impact on the Company’s financial statements. The Audit Committee also reviews policies with respect to financial risk and makes recommendations to the Board.

19


 

COMMUNICATIONS WITH DIRECTORS

Stockholders and other interested parties who wish to communicate with any director or committee of our Board may do so using the procedures detailed in the Corporate Governance section of the Investor Resources page on our website at www.herontx.com.

CODE OF ETHICS AND BUSINESS CONDUCT

We have adopted a Code of Ethics and Business Conduct that applies to our Principal Executive Officer, Principal Financial and Accounting Officer and to all of our other officers, directors and employees. The Code of Ethics and Business Conduct is available in the Corporate Governance section of the Investor Resources page on our website at www.herontx.com. We intend to disclose future waivers or material amendments to certain provisions of our Code of Ethics and Business Conduct on the above-referenced website within four business days following the date of such waiver or amendment. To the extent permissible under Nasdaq rules, if we make any amendments to the Code of Ethics and Business Conduct or grant any waiver, including implicit waiver, from a provision of the Code of Ethics and Business Conduct to a director or executive officer, we intend to disclose the nature of such amendment or waiver in the manner set forth in the Code of Ethics and Business Conduct on our website.

20


SECURITY OWNERSHIP BY CERTAIN BENEFICIAL HOLDERS

The following table sets forth information regarding beneficial ownership of our common stock by: (i) each person known to us to own more than 5% of the outstanding shares of our common stock; (ii) each of our directors; (iii) each of our Named Executive Officers; and (iv) all current directors and Named Executive Officers, as a group. The number of shares reported in the table below is as of the Record Date, except as otherwise noted below, and is based on filings with the SEC or other information of which we are aware. The information in this table is based solely on statements in filings with the SEC or other reliable information included in the Company’s records. Unless otherwise indicated, the address of each of the named individuals is c/o Heron Therapeutics, Inc., 4242 Campus Point Court, Suite 200, San Diego, CA 92121. The percentage of ownership is based on 91,674,565 shares of common stock issued and outstanding as of the Record Date. Beneficial ownership of shares is determined in accordance with the rules of the SEC and includes voting and investment power with respect to the shares. Shares of common stock subject to outstanding options and warrants and shares of common stock underlying convertible notes that are exercisable or convertible, as the case may be, within 60 days of the Record Date are deemed outstanding for computing the percentage of ownership of the person holding such options, restricted stock units, warrants or convertible notes, but are not deemed outstanding for computing the percentage of any other person. Except as otherwise noted, each person or entity has sole voting and investment power with respect to the shares shown.

 

Name

 

Number of

Shares

 

 

Percent of

Class

 

Greater than 5% Holders(1)

 

 

 

 

 

 

 

 

Franklin Resources, Inc.(2)

 

 

12,688,702

 

 

 

13.84

%

One Franklin Parkway

San Mateo, CA 94403

 

 

 

 

 

 

 

 

Vanguard Group Inc. (3)

 

 

8,311,768

 

 

 

9.07

%

PO Box 2600 V26

Valley Forge, PA 19482

 

 

 

 

 

 

 

 

Baker Bros. Advisors LP(4)

 

 

8,121,490

 

 

 

8.66

%

860 Washington Street, 3rd Floor

New York, NY 10014

 

 

 

 

 

 

 

 

Tang Capital Partners, LP(5)

 

 

7,866,443

 

 

 

7.90

%

4747 Executive Drive, Suite 510

San Diego, CA 92121

 

 

 

 

 

 

 

 

Wellington Management Group, LLP(6)

 

 

6,935,914

 

 

 

7.57

%

280 Congress Street

Boston, MA 02210

 

 

 

 

 

 

 

 

BlackRock, Inc.(7)

 

 

6,886,932

 

 

 

7.51

%

East 52nd Street

New York, NY 10055

 

 

 

 

 

 

 

 

ArrowMark Colorado Holdings LLC(8)

 

 

5,361,611

 

 

 

5.85

%

100 Fillmore Street, Suite 325

Denver, CO 80206

 

 

 

 

 

 

 

 

21


 

Current Directors and Named Executive Officers

 

 

 

 

 

 

 

 

Barry Quart, Pharm.D.(9)

 

Chief Executive Officer and Chairman of the Board

 

 

2,428,508

 

 

 

2.58

%

Stephen Davis(10)

 

Director

 

 

37,108

 

 

*

 

Craig Johnson(11)

 

Director

 

 

215,340

 

 

*

 

Kimberly Manhard(12)

 

Executive Vice President, Drug Development and Director

 

 

584,134

 

 

*

 

Christian Waage(13)

 

Director

 

 

104,625

 

 

*

 

John Poyhonen(14)

 

President and Chief Commercial Officer

 

 

348,083

 

 

*

 

David Szekeres(15)

 

Executive Vice President, Chief Operating Officer

 

 

505,359

 

 

*

 

Lisa Peraza(16)

 

Vice President, Chief Accounting Officer

 

 

220,591

 

 

*

 

Current Executive Officers and Directors as a group (8 persons)(17)

 

 

 

 

4,443,748

 

 

 

4.63

%

 

*

Indicates ownership of less than one percent.

(1)

As applicable, the number of shares of common stock listed as owned by a beneficial holder relies on public filings by such beneficial holder and the number of shares of common stock reported as beneficially owned.

(2)

Based on information set forth in a Schedule 13G/A filed with the SEC on February 1, 2021 by Franklin Resources, Inc., Charles Johnson, Rupert Johnson, Jr. and Franklin Advisers, Inc. and its affiliates (Franklin Advisers, Inc. and Fiduciary Trust Company International) reporting beneficial ownership of 12,688,702 shares as of December 31, 2020. The Schedule 13G/A reports that Franklin Advisers, Inc. has sole voting and dispositive power with respect to 12,609,055 shares, that Fiduciary Trust Company International has sole voting and dispositive power with respect to 43,626 shares and that Franklin Templeton Investments (Asia) Ltd. has sole voting and dispositive power with respect to 36,021 shares.

(3)

Based on information set forth in a Schedule 13G/A filed with the SEC on February 10, 2021 by Vanguard Group Inc. reporting beneficial ownership of 8,311,768 shares as of December 31, 2020. The Schedule 13G/A indicates that Vanguard Group has sole dispositive power with respect to 8,047,381 shares, shared voting power with respect to 198,765 shares and shared dispositive power with respect to 264,387 shares.

(4)

Based on information set forth in a Schedule 13G/A filed with the SEC on February 16, 2021 by Baker Bros. Advisors LP, Baker Bros. Advisors (GP) LLC, Felix J. Baker, and Julian C. Baker, (each, a “Baker Advisor”), reporting beneficial ownership of 8,064,832 shares as of December 31, 2020. Shares deemed beneficially owned by the Baker Advisors are held of record by 667, L.P. and Baker Bros. Life Sciences, L.P. (collectively, “Baker Bros”). The Schedule 13G/A reports that each Baker Advisor has sole voting and dispositive power with respect to these 8,064,832 shares, which includes 195,574 shares of common stock that may be acquired upon the exercise of warrants and 1,874,554 shares issuable upon the conversion of the Company’s Senior Secured Convertible Notes due 2021, including interest paid in kind as of December 31, 2020 (the “Notes”) held by the holder. Since December 31, 2020, the beneficial owner received $22,495 and $22,832 principal amount of senior secured convertible notes on January 1, 2021 and April 1, 2021, respectively, as interest in kind on the existing notes held by the beneficial owner. The conversion of this additional principal is included in the table above.

(5)

Beneficial ownership of Tang Capital Partners, LP includes 7,866,443 shares issuable upon conversion of the Notes held by the holder within 60 days of April 20, 2021.

(6)

Based on information set forth in a Schedule 13G/A filed with the SEC on February 4, 2021 by Wellington Management Group, LLC reporting beneficial ownership of 6,935,914 shares as of December 31, 2020. The Schedule 13G/A indicates that Wellington Management Group, LLC has shared voting power with respect to 6,319,148 shares and shared dispositive power with respect to 6,935,914 shares.

(7)

Based on information set forth in a Schedule 13G/A filed with the SEC on January 29, 2021 by BlackRock, Inc. reporting beneficial ownership of 6,886,932 shares as of December 31, 2020. The Schedule 13G/A indicates that BlackRock, Inc. has sole voting power with respect to 6,635,626 shares and sole dispositive power with respect to 6,886,932 shares.

(8)

Based on information set forth in a Schedule 13G filed with the SEC on February 16, 2021 by ArrowMark Colorado Holdings LLC reporting beneficial ownership of 5,361,611 shares as of December 31, 2020. The Schedule 13G indicates that ArrowMark Colorado Holdings LLC has sole voting and dispositive power with respect to these 5,361,611 shares.

(9)

Consists of 95,192 shares of common stock and 2,333,316 shares underlying stock options exercisable within 60 days of April 20, 2021.

(10)

Consists of 750 shares of common stock and 36,358 shares underlying stock options exercisable within 60 days of April 20, 2021.

(11)

Consists of 1,340 shares of common stock and 214,000 shares underlying stock options exercisable within 60 days of April 20, 2021.

(12)

Consists of 1,634 shares of common stock and 582,500 shares underlying stock options exercisable within 60 days of April 20, 2021.

22


(13)

Consists of 1,850 shares of common stock and 102,775 shares underlying stock options exercisable within 60 days of April 20, 2021.

(14)

Consists of 20,414 shares of common stock and 327,669 shares underlying stock options exercisable within 60 days of April 20, 2021.

(15)

Consists of 817 shares of common stock and 504,542 shares underlying stock options exercisable within 60 days of April 20, 2021.

(16)

Consists of 11,945 shares of common stock and 208,646 shares underlying stock options exercisable within 60 days of April 20, 2021.

(17)

Consists of 133,942 shares of common stock and 4,309,806 shares underlying stock options exercisable within 60 days of April 20, 2021.

23


CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS

Related Person Transactions Policies

Pursuant to our Code of Ethics and Business Conduct, our executive officers, directors and employees must disclose transactions involving actual or apparent conflicts of interest, such as related person transactions, to the Chairman of the Board. Additionally, the Audit Committee is responsible for review and approval of all related person transactions in which any officer, director or stockholder has a direct or indirect interest and would be required to be disclosed under Item 404(a) of Regulation S-K, and has written policies and procedures for reviewing, approving or ratifying any transaction required to be reported under Item 404(a) of Regulation S-K. In reviewing related person transactions, the Audit Committee evaluates any transaction in which the Company was or is to be a participant and the amount involved exceeds $120,000, and in which the “related person” (as defined in Item 404(a) of Regulation S-K) had, or will have, a direct or indirect material interest. The Audit Committee also will consider whether the proposed terms are at least as favorable to the Company as could be obtained from unaffiliated third parties and will confirm that there is a bona fide business purpose for the transaction. There were no related person transactions since the beginning of the Company’s last completed fiscal year that require disclosure under Item 404 of Regulation S-K.

24


EXECUTIVE COMPENSATION

Compensation Discussion and Analysis

Overview

The following Compensation Discussion and Analysis describes the material elements of compensation earned in 2020 by each of the executive officers identified in the Summary Compensation Table below, who are referred to collectively as our “Named Executive Officers.” Our Named Executive Officers with respect to 2020 were:

 

Barry Quart, Pharm.D., Chairman and Chief Executive Officer;

 

John Poyhonen, President, Chief Commercial Officer;

 

Kimberly Manhard, Executive Vice President, Drug Development;

 

David Szekeres, Executive Vice President, Chief Operating Officer;

 

Lisa Peraza, Vice President, Chief Accounting Officer; and

 

Robert Hoffman, Former Chief Financial Officer and Senior Vice President, Finance.

These persons constitute our principal executive officer, our principal financial and accounting officers, and our only other executive officers, all serving during 2020. Mr. Hoffman retired from the Company on October 16, 2020.  The 2020 compensation discussion provided below includes payments that were made in 2021 when such payments related to performance in 2020.

Key highlights of the Company’s 2020 achievements and success include exceeding our commercial sales targets for the Chemotherapy Induced Nausea and Vomiting (“CINV”) franchise which is comprised of CINVANTI® (aprepitant) injectable emulsion and SUSTOL® (granisetron) extended-release injection; refiling the New Drug Application (“NDA”) with the U.S. Food and Drug Administration (“FDA”) for HTX-011; receiving approval for the Marketing Authorisation Application with the European Union Medicines Agency for ZYNRELEFTM (also known as HTX-011); and the filing of two Investigational New Drug applications for our acute pain product candidate, HTX-034, and a Post-Operative Nausea and Vomiting indication for HTX-019. These achievements and others expanded the opportunity for future growth and long-term success.

Compensation Philosophy and Objectives

Our goal is to provide a competitive total compensation package with significant emphasis on paying for performance. Our corporate compensation philosophy targets annual base salary and annual incentive bonus payout percentage at or near the 50th percentile of the market, and equity awards at or near the 50th percentile of the market when compared to executives with similar roles at similar organizations. We favor equity-based compensation and variable incentive awards over guaranteed cash compensation in order to drive accomplishments that enhance stockholder value and align the interests of our Named Executive Officers and our stockholders. This means that our Named Executive Officers will not realize the total potential value of their compensation package unless performance goals, the significant majority of which are directly tied to our corporate performance, are achieved, and the value of our stock increases. The Compensation Committee believes that our executive compensation program is appropriately designed and reasonable in light of the executive compensation programs of our peer-group companies. The Compensation Committee also believes that our executive compensation program is appropriate in that it is designed to incentivize our management team to achieve our short-term and long-term corporate objectives while effectively managing business risks and challenges.

25


In implementing the foregoing objectives, our executive compensation program is based on three primary components: (i) base salary; (ii) annual cash incentive bonuses; and (iii) equity-based compensation. The Compensation Committee believes that compensation in the form of base salary and an annual cash incentive bonus provides our Named Executive Officers with short-term rewards for success in operational performance and meeting established goals and business responsibilities, while compensation through equity awards aligns the objectives of our management team with those of our stockholders with respect to long-term performance and success. In addition, our Named Executive Officers receive benefits that are generally available to all our employees. The Compensation Committee’s process for setting compensation includes reviewing the targeted overall compensation for each Named Executive Officer and then allocating that compensation between base salary, annual cash incentive bonuses and equity-based compensation with reference to the competitive market peer-company data as well as market survey data for public companies of a similar size and market capitalization and at a similar stage of product development and business activity.

Risk Management and Mitigation

In reviewing our compensation structure in 2020, the Compensation Committee also considered whether our compensation policies and practices could affect our risk profile and whether such compensation policies and practices could potentially encourage excessive risk taking by our employees. More specifically, thought was given to the general design philosophy of our policies for employees whose conduct would be most affected by the incentives established under our compensation programs. In considering these issues, the Compensation Committee did not find that our compensation policies and other policies generally raised undue risks for the Company or potentially could encourage excessive risk taking by our employees.

With respect to cash incentive bonuses and equity-based compensation for our Named Executive Officers, the amount of an individual’s bonus or award depends principally on overall Company performance, which reduces the incentive for an individual to take undue individual risks in an effort to increase the amount of his or her cash bonus or equity award for a particular year. The Company’s performance goals are reviewed annually by the Compensation Committee at the beginning of each year to ensure that they are appropriate and would not encourage or reward excessive risk taking. Additionally, the Compensation Committee monitors Company performance periodically throughout the year and has the opportunity to intervene in the event that actions by individual employees with respect to the Company’s performance goal attainment would raise undue risk.

With respect to new hire equity awards, these awards typically vest and become exercisable over a period of four years, consisting of an initial one-year cliff vest, followed by monthly vesting for stock options and quarterly vesting for restricted stock units. With respect to ongoing equity awards, these awards typically vest and become exercisable ratably each month for stock options and quarterly for restricted stock units both over a four-year period. We believe that long-term value creation, contrasted with short-term gain, presents the best opportunity for our employees to profit from these awards. In circumstances where performance-based equity awards have been granted, the events that trigger vesting are generally estimated to be achieved at least one or more years from the grant date.

Consideration of Most Recent Stockholder Advisory Vote to Approve Named Executive Officer Compensation

In 2020, the percentage of votes cast “For” our advisory say-on-pay vote to approve the Company’s Named Executive Officer compensation was 94.4% of the total votes cast. The Board and Compensation Committee believe that our 2020 say-on-pay results are an affirmation of the effectiveness of the Company’s executive compensation program and, therefore, no changes were made to the structure and elements of the executive compensation program based on the 2020 say-on-pay vote results.

26


Roles in Determining Compensation

Compensation Committee

For 2020, the Compensation Committee had the responsibility of reviewing the appropriateness of the target total compensation of our Named Executive Officers. The Compensation Committee engaged in this evaluation while also considering whether the compensation program was achieving its objectives consistent with our compensation philosophy. The Compensation Committee oversaw and approved all compensation arrangements and actions for our Named Executive Officers and other key employees in 2020. While the Compensation Committee drew on a number of resources, including input from the Chairman and Chief Executive Officer, to make decisions regarding the Company’s executive compensation program, ultimate decision-making authority rested with the Compensation Committee. The members of the Compensation Committee relied on their judgment in making compensation decisions after reviewing our overall performance and evaluating each Named Executive Officer’s performance and overall contributions during the year against established goals, operational performance and business responsibilities.

Compensation Consultant

In 2020, the Compensation Committee engaged the services of Compensia, Inc. (“Compensia”), a national independent compensation advisory firm that has extensive experience with biotechnology companies and specializes in executive compensation. The directive for Compensia was to assist the Compensation Committee in its review of executive and director compensation practices, including the competitiveness of pay levels, executive compensation design and review and analysis of competitive market data with respect to the Company’s peers in the industry. The Compensation Committee has the final authority to engage and terminate services for consultants it may engage. The decision to engage Compensia was not made or recommended by our management, and Compensia did not provide any services to us outside of its services to the Compensation Committee. The Compensation Committee, after a review of the factors set forth in Section 10C(b)(2) of the Exchange Act and Rule 10C-1(b)(4) under the Exchange Act, has determined that the work performed by Compensia did not present any conflicts of interest.

Chairman and Chief Executive Officer

In 2020, our Chairman and Chief Executive Officer attended Compensation Committee meetings at which executive compensation (other than our Chairman and Chief Executive Officer’s compensation) was discussed, and he worked with the Compensation Committee to develop compensation recommendations for the Named Executive Officers (apart from himself), based on individual experience and breadth of knowledge, internal considerations, individual performance during the relevant year and other factors deemed relevant by the Compensation Committee. The Chairman and Chief Executive Officer’s input was one of the factors considered by the Compensation Committee in determining overall compensation for the other Named Executive Officers and other key employees. The Compensation Committee used Compensia’s analysis to formulate compensation recommendations for the Chairman and Chief Executive Officer. Discussions regarding compensation for our Chairman and Chief Executive Officer were held by the Compensation Committee in an executive session.


27


Competitive Market Review

In 2020, the Compensation Committee retained Compensia to assist with identifying a group of peer companies within the biotechnology/biopharmaceutical industry with similar identified characteristics to our Company to be used to assess compensation levels for the top senior management positions and non-employee directors. Compensia was involved with the process of selecting an appropriate peer group for our Company and in collecting and analyzing compensation data of the companies within our peer group. In addition, for some positions, we reviewed other broader market surveys within our industry. While we do not establish compensation levels based solely on comparative data, pay practices at other companies are an important factor that are considered in assessing the reasonableness of compensation and ensuring that our compensation practices are competitive in the marketplace.

 

In developing the peer group for 2020, the criteria that were used to identify the peer companies were market capitalization (ranging from $617 million to $4.2 billion) and current stage of product development or business activity (at the commercialization stage). The 18 companies in the peer group for 2020 are listed below.

 

Agios Pharmaceuticals, Inc.

Ironwood Pharmaceuticals, Inc.

Amicus Therapeutics, Inc.

Karyopharm Therapeutics Inc.

Coherus Biosciences, Inc.

Nektar Therapeutics

Corcept Therapeutics Incorporated

Pacira BioSciences, Inc.

Enanta Pharmaceuticals, Inc.

PTC Therapeutics, Inc.

Esperion Therapeutics, Inc.

Radius Health, Inc.

Halozyme Therapeutics, Inc.

Supernus Pharmaceuticals, Inc.

Insmed Incorporated

Travere Therapeutics, Inc. (formerly Retrophin, Inc.)

Intercept Pharmaceuticals, Inc.

Vericel Corporation

 

While the Compensation Committee reviewed compensation data pertaining to these companies, it determined that elements such as the Company’s diversity of clinical development activities and the level of executive experience should also be significant factors in assessing compensation levels.

Compensation Elements

Base Salary

Named Executive Officer base salaries are based on job responsibilities, accountability and the experience of the individual. For 2020, the Compensation Committee sought to implement a policy of targeting base salaries for our Named Executive Officers, including the Chairman and Chief Executive Officer, at or near the 50th percentile of salaries of named executive officers with similar roles at similar organizations, based on its review of competitive market data. In its assessment of named executive officer compensation levels, Compensia provided an analysis that confirmed, using the Company’s 2020 peer group and broader industry and market survey data for life sciences companies, that our Named Executive Officer base salaries and target total cash compensation are near the 50th percentile with the exception of the Chairman and Chief Executive Officer whose base salary and target total cash compensation approximated the 15th percentile. Through review of the data provided, the Compensation Committee determined that base salaries for the Named Executive Officers, except for the Chairman and Chief Executive Officer, appeared to be generally aligned with our compensation philosophy as described above.


28


More specifically, during its review of base salaries for our Named Executive Officers, the Compensation Committee primarily considered:

 

market data drawn from publicly available industry surveys;

 

compensation data for companies in our 2020 peer group discussed above, which are of a similar size and range of market capitalization and at a similar stage of product development or business activity (i.e., commercial-stage companies);

 

individual performance of each Named Executive Officer during the year, including achievements and overall contribution to the Company’s growth and business success; and

 

an internal review of each Named Executive Officer’s overall compensation relative to other executives at a similar level in the Company.

The Compensation Committee considered these factors in the aggregate, without assigning weight to any specific factor.

 

Base salary levels are typically considered annually as part of our performance review process, as well as on promotion or other change in job responsibilities. In connection with the appointment of Mr. Szekeres and Ms. Peraza as executive officers in October 2020 and their promotions to Executive Vice President, Chief Operating Officer and Vice President, Chief Accounting Officer, respectively, Mr. Szekeres’ base salary was set at $480,000 and Ms. Peraza’s base salary was set at $330,000. The base salaries for Mr. Szekeres and Ms. Peraza were determined based on the job responsibilities associated with their respective new positions and the Compensation Committee’s consideration of the factors discussed above. Merit increases are awarded based on the Compensation Committee’s overall review of a Named Executive Officer’s performance of his or her job responsibilities. In addition, base salaries are reviewed annually for comparability with market practices. Market adjustments generally are reserved for those whose base salaries are substantially below market as was the case with our Chairman and Chief Executive Officer who received a market adjustment in addition to his base salary increase. In December 2020, the Board approved the following base salary increases for 2021 based on performance during 2020:

Executive

 

Principal Position

 

2020 Base

Salary

 

 

Base Salary

Increase %

 

 

Adjusted

Salary

For 2021

 

Barry Quart, Pharm.D.

 

Chief Executive Officer

 

$

651,770

 

 

 

7.4

%

 

$

700,000

 

John Poyhonen

 

President and Chief Commercial Officer

 

$

494,901

 

 

 

3.0

%

 

$

509,748

 

Kimberly Manhard

 

Executive Vice President, Drug Development

 

$

499,939

 

 

 

3.0

%

 

$

514,937

 

David Szekeres

 

Executive Vice President, Chief Operating Officer

 

$

480,000

 

 

 

3.0

%

 

$

494,400

 

Lisa Peraza

 

Vice President, Chief Accounting Officer

 

$

330,000

 

 

 

3.0

%

 

$

339,900

 

Robert Hoffman

 

Former Chief Financial Officer and Senior Vice President, Finance

 

$

435,360

 

 

 

 

 

$

 

 

These salary adjustments were effective commencing with the first pay period in 2021 and were in line with merit increases across the Company. Mr. Hoffman did not receive a base salary adjustment as he retired from the Company prior to year-end.

29


Annual Cash Incentive Bonus

The Compensation Committee, consistent with the overall corporate philosophy of maintaining target total cash compensation for our Named Executive Officers at or near the 50th percentile when compared to named executive officers with similar roles at similar organizations, reviewed the target annual cash incentive bonus payouts for the Named Executive Officers based on peer group and broader industry and market survey data. The target annual incentive bonus amount is set at a level based on the Named Executive Officer’s accountability and potential impact on the Company’s performance. Accordingly, the more control and accountability that a Named Executive Officer has over the Company’s performance, the greater the percentage of that Named Executive Officer’s total target cash compensation is dependent on annual corporate performance-based cash bonus awards.

The target annual cash incentive bonus payout percentages for 2020 were as follows: 70% of base salary for Dr. Quart, 50% of base salary for each of Mr. Poyhonen, Ms. Manhard and Mr. Szekeres, 40% for Mr. Hoffman and 35% for Ms. Peraza, each corresponding to their respective job levels. Mr. Hoffman did not receive an annual cash incentive bonus as he retired from the Company prior to year-end. These target percentages were unchanged from 2019 except for Dr. Quart’s target being raised to 70% to align with peer companies and Mr. Szekeres’s target being raised to 50% in October to align with his new role as Chief Operating Officer.  

 

In determining the annual cash incentive bonus payout for executives, the Named Executive Officer’s annual base salary is multiplied by his or her target bonus percentage. For Dr. Quart, Mr. Poyhonen, Ms. Manhard, and Mr. Szekeres, each of whose bonus is weighted solely on corporate goal achievement, the resulting amount is then multiplied by the corporate performance percentage approved by the Compensation Committee or the Board, which is based on the achievement of corporate performance goals. For Ms. Peraza, the bonus payout calculation considers an equal weighting of both corporate and individual goal achievement. Ms. Peraza’s base salary is multiplied by the target bonus percentage to calculate a target dollar award, then 50% of this amount is multiplied by the corporate performance percentage and 50% is multiplied by the individual performance percentage. These two numbers are added together to calculate Ms. Peraza’s final bonus amount.  

For annual cash incentive bonuses for our Named Executive Officers, a minimum overall goal achievement of greater than or equal to 50% is required for any performance-based cash bonus to be earned. The target annual cash incentive bonus can be earned if a goal achievement of 100% is obtained; for extraordinary performance in corporate goal achievement, up to 150% of the target annual cash incentive bonus for that goal may be awarded. Accordingly, for each Named Executive Officer in 2020, there was the potential to receive up to 150% of his or her overall target annual cash incentive bonus payout. The Compensation Committee retains sole discretion to modify our target corporate performance goals at any time, including the methodology for calculating the specific bonus amounts. The Compensation Committee may also, in its sole discretion, determine to either increase annual cash incentive bonus payouts for extraordinary achievement or to reduce payouts if economic and business conditions warrant.

Our corporate goals are collectively designed to emphasize success with respect to our diverse business efforts and encourage our Named Executive Officers to support each goal as a multi-disciplinary function. For 2020, our corporate goals were a combination of the following: (1) exceeding certain commercial sales targets for the CINV franchise; (2) obtaining approval for the NDA with the FDA for HTX-011; (3) obtaining marketing approval for HTX-011 in certain markets outside the United States; (4) completion of certain pre-commercialization efforts with respect to HTX-011; (5) achieving certain drug development milestones for pipeline products; and (6) financial goals, including adhering to an on-target budget. Although these goals were assigned weights, the Compensation Committee’s analysis of the level of achievement for each goal was subjective and the goals were considered in the aggregate, without a formulaic evaluation. In the aggregate, the Compensation Committee determined that overall, the corporate performance goals had been achieved at a level of 80%.

30


Performance-based cash bonuses for each Named Executive Officer were approved based on the achievement of corporate performance goals, including achievement of individual performance goals as applicable for Ms. Peraza. An 80% multiplier was used for corporate goal achievement in the calculations of their annual cash incentive bonus amount with corresponding payouts noted in the table below. Mr. Hoffman did not receive an annual cash incentive bonus as he retired from the Company prior to year-end.

 

Executive

 

Principal Position

 

2020 Annual

Cash

Incentive

Bonus

 

Barry Quart, Pharm.D.

 

Chief Executive Officer

 

$

364,991

 

John Poyhonen

 

President and Chief Commercial Officer

 

$

197,960

 

Kimberly Manhard

 

Executive Vice President, Drug Development

 

$

199,976

 

David Szekeres

 

Executive Vice President, Chief Operating Officer

 

$

161,664

 

Lisa Peraza

 

Vice President, Chief Accounting Officer

 

$

105,683

 

Robert Hoffman

 

Former Chief Financial Officer and Senior Vice President, Finance

 

$

 

 

Equity-Based Compensation

Our equity-based compensation program is designed to promote high performance and achievement of corporate goals by employees on a long-term basis, encourage the growth of stockholder value and allow employees to participate in the long-term success of the Company. Under the Amended and Restated 2007 Equity Incentive Plan, the Board (or a committee thereof, including the Compensation Committee) may grant stock options, shares of stock, restricted stock units, stock appreciation rights and performance awards. In granting these equity awards, the Board (or a committee thereof, including the Compensation Committee) may establish any conditions or restrictions it deems appropriate.  

In addition to our historical use of stock options, during 2020 we began using restricted stock units (“RSUs”) as part of our equity compensation program for Named Executive Officers and other employees. Equity award value for Named Executive Officers was awarded by granting 75% of the value through stock options and 25% of the value through RSUs. By granting equity awards, the Compensation Committee has provided the members of the management team with a significant equity stake in our Company, which we believe aligns the long-term interests of the management team with our stockholders. Because a financial gain from stock options is only possible if the market price of the Company’s common stock increases over time, the Compensation Committee believes that option grants motivate our Named Executive Officers and other employees to deliver superior performance and focus on behaviors and initiatives that lead to long-term value creation, which benefits all of our stockholders. The addition of RSUs to the award mix also supports long-term value creation with an appreciable equity stake in the company that vests over several years. This form of equity compensation also helps to conserve shares used for compensation purposes.

Equity award levels are based on grant guidelines approved by the Board or the Compensation Committee and vary among employees based on their job level within the Company and their individual performance. Annual equity awards to Named Executive Officers are typically made as part of the annual review of Named Executive Officer performance, which typically occurs around year-end. However, in 2020, equity awards were granted, including the introduction of RSUs, to all employees in October 2020.  Newly hired or promoted executives receive their equity awards on their respective dates of hire or promotion. For 2020, the Compensation Committee targeted equity award levels for our Named Executive Officers, including the Chairman and Chief Executive Officer, at approximately the 50th percentile of long-term incentive awards of executives with similar roles at similar organizations, based on a review of competitive market data. The grant of equity awards by the Company is unrelated to any anticipated major announcements made by the Company and is not influenced by any material, non-public information that may exist at the time of grant.

31


In October 2020, annual equity awards were granted to each of our Named Executive Officers, who were then employed by the Company, after consideration of the performance and achievements by each Named Executive Officer thus far during 2020 and their future anticipated impact on the success of the organization. Annual stock option awards vest ratably each month over a four-year period while the annual RSU awards vest ratably each quarter over a four-year period. In determining the appropriate value of each of these awards, the Compensation Committee used the market analysis and peer group data developed with the assistance of Compensia, as discussed above. With respect to each Named Executive Officer, the peer-group data and survey data for companies in our industry with similar market capitalization was used to help set the appropriate value of the grant using the Black-Scholes option pricing model in the case of the stock options. Mr. Poyhonen’s 2020 equity award included a grant of 50,000 stock options in connection with his promotion to President and Chief Commercial Officer. Mr. Szekeres’s 2020 equity award also included a grant of 36,000 stock options related to his promotion to Executive Vice President, Chief Operating Officer. Ms. Peraza’s 2020 equity award included a grant of 50,000 stock options related to her promotion to Vice President, Chief Accounting Officer. Mr. Hoffman did not receive any equity awards as he retired from the Company prior to year-end. The Board-approved equity grants were as follows:

Executive

 

Principal Position

 

Restricted Stock Unit Award

 

 

Grant Date

Fair Value

 

 

Option Award

 

 

Grant Date

Fair Value

 

Barry Quart, Pharm.D.

 

Chief Executive Officer

 

 

58,333

 

 

$

916,995

 

 

 

350,000

 

 

$

3,366,895

 

John Poyhonen

 

President and Chief Commercial Officer

 

 

20,000

 

 

$

314,400

 

 

 

170,000

 

 

$

1,635,349

 

Kimberly Manhard

 

Executive Vice President, Drug Development

 

 

20,000

 

 

$

314,400

 

 

 

120,000

 

 

$

1,154,364

 

David Szekeres

 

Executive Vice President, Chief Operating Officer

 

 

20,000

 

 

$

314,400

 

 

 

156,000

 

 

$

1,500,673

 

Lisa Peraza

 

Vice President, Chief Accounting Officer

 

 

8,833

 

 

$

138,855

 

 

 

103,000

 

 

$

990,829

 

Robert Hoffman

 

Former Chief Financial Officer and Senior Vice President, Finance

 

 

 

 

$

 

 

 

 

 

$

 

 

Employee Benefit Programs

The Named Executive Officers are eligible to participate in the Company’s health, welfare, paid time-off, retirement savings and employee stock purchase benefit programs on the same terms as are available to other employees. These benefit programs are designed to enable the Company to attract and retain its workforce in a competitive marketplace. The retirement savings plan helps employees save and prepare financially for retirement. Our Employee Stock Purchase Plan (“ESPP”) provides employees with an opportunity for increased equity ownership in the Company. Other than these benefits generally available to all employees, Named Executive Officers do not receive any other benefits or perquisites.

Our retirement savings plan (“401(k) Plan”) is a tax-qualified retirement savings plan, pursuant to which all employees, including the Named Executive Officers, are able to contribute the lesser of 100% of their annual compensation (as defined) or the limit prescribed by the Internal Revenue Service to the 401(k) Plan on a pre-tax basis. In 2020, we matched employee contributions to the 401(k) Plan in an amount equal to 50% of each participant’s contribution during the plan year, up to a maximum amount equal to the lesser of either: (a) 3% of each participant’s annual compensation; or (b) $8,550.

Our ESPP allows employees, including the Named Executive Officers, to voluntarily purchase common stock under the ESPP twice per calendar year (up to 10% of each employee’s base salary, hourly compensation and any cash bonus paid, subject to certain limitations) over the six-month offering period at 85% of the fair market value of the common stock at specified dates.

32


Employment and Separation Arrangements

We have entered into employment agreements with each Named Executive Officer, the terms of which provide, among other things, for certain termination and change-in-control payments and benefits. Our Board approved the termination and change-in-control payments and benefits in order to maintain market-competitive compensation practices and to mitigate some of the risk that exists for executives working in a biopharmaceutical company at our current stage of development, where the possibility exists that we may be acquired if our business efforts succeed. These arrangements are intended to retain highly skilled executives who have, or who may seek, alternatives that may appear to them to be less risky in terms of the potential loss of their position following a merger or sale, particularly where the services of these executive officers may not be required by the acquirer. We do not provide any of our Named Executive Officers with gross-up protection for “golden parachute” excise taxes in any of these arrangements.

A summary of the terms of each of the arrangements we have with each Named Executive Officer who is currently employed by the Company and the potential value of the payments and benefits on termination of employment or change in control is provided in this Proxy Statement under the headings “Employment Arrangements” and “Payments on Termination or Change in Control.”

Tax Considerations

In making compensation decisions affecting our Named Executive Officers, the Compensation Committee considers our ability to deduct, under applicable federal corporate income tax law, compensation payments made to executives. Specifically, the Compensation Committee considers the requirements and impact of Section 162(m) of the Internal Revenue Code (the “Code”), which limits the tax deductibility to us of compensation in excess of $1.0 million in any year for certain executive officers.

Compensation paid to certain of our executive officers in excess of $1.0 million will not be deductible unless it qualifies for certain transition relief applicable for compensation paid pursuant to a written binding contract that was in effect as of November 2, 2017.  The Compensation Committee believes that stockholder interests are best served by not restricting the Compensation Committee’s discretion and flexibility in structuring compensation programs, even if such compensation results in non-deductible expenses under applicable law.

Trading Policy

We maintain an Insider Trading and Trading Window Policy that, among other things, prohibits our officers, including our Named Executive Officers, directors and employees from engaging in short sales, hedging of stock ownership positions and transactions involving derivative securities relating to our common stock. The policy does not provide for exceptions from these rules.

Minimum Stock Ownership Requirements

There are no minimum stock ownership guidelines for our Named Executive Officers or employees, although senior members of our management team are encouraged and expected to have a significant direct interest in the value of our common stock through the receipt of equity awards and/or open market purchases, as the case may be. We strive to design our compensation program to stress long-term ownership in Company equity as the means of best aligning the interests of our Named Executive Officers with those of our stockholders.


33


Compensation Committee Report

The Compensation Committee has reviewed and discussed with management the Compensation Discussion and Analysis required by Item 402(b) of Regulation S-K. Based on this review and discussion, the Compensation Committee recommended to the Board that the foregoing Compensation Discussion and Analysis be included in this Proxy Statement.

 

Submitted by the Compensation Committee

 

Stephen Davis, Chairman

Craig Johnson

Christian Waage

34


Summary Compensation Table

The following tables and descriptive materials set forth information concerning compensation earned for services rendered to us by our Named Executive Officers during the years ended December 31, 2020, 2019 and 2018.

 

Name and Principal Position

 

Year

 

Salary(1)

 

 

Stock

Awards(2)

 

 

Option

Awards(2)

 

 

Non-Equity

Incentive Plan

Compensation(3)

 

 

All Other

Compensation

 

 

Total

 

Barry Quart, Pharm.D.(4)

 

2020

 

$

676,838

 

 

$

916,995

 

 

$

3,366,895

 

 

$

364,991

 

 

$

21,084

 

 

$

5,346,803

 

Chief Executive Officer

 

2019

 

$

638,991

 

 

$

 

 

$

4,916,373

 

 

$

306,715

 

 

$

8,400

 

 

$

5,870,479

 

 

 

2018

 

$

614,414

 

 

$

 

 

$

4,815,660

 

 

$

552,973

 

 

$

8,250

 

 

$

5,991,297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

John Poyhonen(5)

 

2020

 

$

513,935

 

 

$

314,400

 

 

$

1,635,349

 

 

$

197,960

 

 

$

8,550

 

 

$

2,670,194

 

President and

 

2019

 

$

216,731

 

 

$

 

 

$

4,211,063

 

 

$

90,751

 

 

$

6,219

 

 

$

4,524,764

 

Chief Commercial Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kimberly Manhard(6)

 

2020

 

$

519,167

 

 

$

314,400

 

 

$

1,154,364

 

 

$

199,976

 

 

$

8,550

 

 

$

2,196,457

 

Executive Vice President,

 

2019

 

$

490,136

 

 

$

 

 

$

1,815,276

 

 

$

196,054

 

 

$

8,400

 

 

$

2,509,866

 

Drug Development

 

2018

 

$

466,796

 

 

$

 

 

$

1,605,220

 

 

$

350,097

 

 

$

8,250

 

 

$

2,430,363

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

David Szekeres(7)

 

2020

 

$

476,910

 

 

$

314,400

 

 

$

1,500,673

 

 

$

161,664

 

 

$

8,550

 

 

$

2,462,197

 

Executive Vice President,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chief Operating Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lisa Peraza(8)

 

2020

 

$

328,805

 

 

$

138,855

 

 

$

990,829

 

 

$

105,683

 

 

$

14,567

 

 

$

1,578,739

 

Vice President,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chief Accounting Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Robert Hoffman(9)

 

2020

 

$

360,009

 

 

$

 

 

$

 

 

$

 

 

$

668,287

 

 

$

1,028,296

 

Former Chief Financial Officer and

 

2019

 

$

388,714

 

 

$

 

 

$

1,512,730

 

 

$

124,388

 

 

$

8,400

 

 

$

2,034,232

 

Senior Vice President, Finance

 

2018

 

$

357,438

 

 

$

 

 

$

1,139,706

 

 

$

214,463

 

 

$

8,027

 

 

$

1,719,634

 

 

(1)

The amounts listed for 2020 include 27 bi-weekly payments rather than the standard 26 bi-weekly payments per year.

(2)

This column represents the aggregate grant date fair value, computed in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 718 for stock awards and options granted to the Named Executive Officers in 2020, 2019 and 2018. The assumptions used in calculating the fair value of the stock awards and options can be found under Note 9 to the Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2020. These amounts reflect the grant date fair value for these stock awards and options and do not necessarily correspond to the actual value that will be realized by the Named Executive Officers. For additional information on stock awards and options granted to the Named Executive Officers in 2020 and in prior years, see below under “Grants of Plan-based Awards” and “Outstanding Equity Awards at Fiscal Year-End.”

(3)

The amounts listed represent cash awards earned for the year under the Company’s annual cash incentive bonus program. For additional information regarding the annual cash incentive bonus program, see above under “Compensation Discussion and Analysis-Compensation Elements-Annual Cash Incentive Bonus.”

(4)

The grant date fair value of the equity awards granted in October 2020, as reflected under “Stock Awards” and “Option Awards,” represents an annual grant for 2020 services. “All Other Compensation” listed for 2020 consist of our matching contributions on behalf of the named individual to our 401(k) Plan and a cash out accrued vacation.  

(5)

The grant date fair value of the equity awards granted in October 2020, as reflected under “Stock Awards” and “Option Awards,” represents an annual grant for 2020 services and a promotion grant. “All Other Compensation” listed for 2020 consist of our matching contributions on behalf of the named individual to our 401(k) Plan.

(6)

The grant date fair value of the equity awards granted in October 2020, as reflected under “Stock Awards” and “Option Awards,” represents an annual grant for 2020 services. “All Other Compensation” listed for 2020 consist of our matching contributions on behalf of the named individual to our 401(k) Plan.

(7)

Mr. Szekeres was appointed Executive Vice President, Chief Operating Officer in October 2020 at which time his annual base salary was set at $480,000. The grant date fair value of the equity awards granted in October 2020, as reflected under “Stock Awards” and “Option Awards,” represents an annual grant for 2020 services and a promotion grant. “All Other Compensation” listed for 2020 consist of our matching contributions on behalf of the named individual to our 401(k) Plan.

35


 

(8)

Ms. Peraza was appointed Vice President, Chief Accounting Officer in October 2020 at which time her annual base salary was set at $330,000. The grant date fair value of the equity awards granted in October 2020, as reflected under “Stock Awards” and “Option Awards,” represents an annual grant for 2020 services and a promotion grant. “All Other Compensation” listed for 2020 consist of our matching contributions on behalf of the named individual to our 401(k) Plan and a cash out accrued vacation.  

(9)

Mr. Hoffman retired from the Company on October 16, 2020. Mr. Hoffman was not awarded an annual equity grant or annual cash incentive bonus for 2020. “All Other Compensation” listed for 2020 includes severance of $609,504 which consists of an amount equal to his annual base salary of $435,360 and an amount equal to his target performance bonus opportunity of $174,144, as well as a payout of accrued vacation and our matching contributions on behalf of the named individual to our 401(k) Plan.

Grants of Plan-based Awards Table

The following table sets forth certain information regarding grants of plan-based awards to the Named Executive Officers during the year ended December 31, 2020:

 

 

 

 

 

Estimated Future

Payouts Under

Non-Equity Incentive

Plan Awards(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name

 

Grant Date

 

Minimum

 

 

Target

 

 

Maximum

 

 

All Other

Stock Awards:

Number of

Shares of Stock or Units (#)

 

 

All Other

Option Awards:

Number of

Securities

Underlying

Options (#)

 

 

 

Exercise

Price of

Option Awards

($/Share)

 

 

Grant-date

Fair Value of Stock and Option

Awards(2)

 

Current Named Executive Officers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Barry Quart, Pharm.D.

 

 

 

$

228,120

 

 

$

456,239

 

 

$

684,359

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10/13/2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

350,000

 

(3)

 

$

15.72

 

 

$

3,366,895

 

 

 

10/13/2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

58,333

 

(4)

 

 

 

 

 

 

 

 

 

$

916,995

 

John Poyhonen

 

 

 

$

123,725

 

 

$

247,450

 

 

$

371,175

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10/13/2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

170,000

 

(3)

 

$

15.72

 

 

$

1,635,349

 

 

 

10/13/2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20,000

 

(4)

 

 

 

 

 

 

 

 

 

$

314,400

 

Kimberly Manhard

 

 

 

$

124,985

 

 

$

249,969

 

 

$

374,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10/13/2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

120,000

 

(3)

 

$

15.72

 

 

$

1,154,364

 

 

 

10/13/2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20,000

 

(4)

 

 

 

 

 

 

 

 

 

$

314,400

 

David Szekeres

 

 

 

$

101,040

 

 

$

202,080

 

 

$

303,120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10/13/2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

156,000

 

(3)

 

$

15.72

 

 

$

1,500,673

 

 

 

10/13/2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20,000

 

(4)

 

 

 

 

 

 

 

 

 

$

314,400

 

Lisa Peraza

 

 

 

$

57,750

 

 

$

115,500

 

 

$

173,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10/13/2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

103,000

 

(3)

 

$

15.72

 

 

$

990,829

 

 

 

10/13/2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,833

 

(4)

 

 

 

 

 

 

 

 

 

$

138,855

 

Former Named Executive Officers: