| (9) | Amount represents compensation of $5,800 from matching contributions made by us to Dr. Brazzell’s tax-qualified 401(k) Savings Plan account and $13,176 from premiums we paid on behalf of Dr. Brazzell for life and disability insurance. |
| (10) | Amount represents compensation of $5,700 from matching contributions made by us to Dr. Brazzell’s tax-qualified 401(k) Savings Plan account and $13,455 from premiums we paid on behalf of Dr. Brazzell for life and disability insurance. |
Narrative Disclosure to Summary Compensation Table
Base Salary. We use base salaries to recognize the experience, skills, knowledge and responsibilities required of all our employees, including our named executive officers. None of our named executive officers is currently party to an employment agreement or other agreement or arrangement that provides for automatic or scheduled increases in base salary.
In December 2020, our compensation committee increased Mr. Iwicki’s, Mr. Bazemore’s and Dr. Brazzell’s annual base salaries to $643,500, $489,878 and $476,207, respectively, effective January 1, 2021.
In December 2021, our compensation committee increased Mr. Iwicki’s, Mr. Bazemore’s and Dr. Brazzell’s annual base salaries to $682,110, $515,000 and $500,000, respectively, effective January 1, 2022.
Annual Bonus. Performance-based bonuses, which are calculated as a percentage of base salary, are designed to motivate our employees to achieve annual goals based on our strategic, financial and operating performance objectives. Historically, our board of directors or our compensation committee has approved discretionary annual cash bonuses to our named executive officers with respect to their prior year performance.
With respect to 2021 performance, our compensation committee awarded bonuses of $270,270, $171,457 and $150,005 to Mr. Iwicki, Mr. Bazemore and Dr. Brazzell, respectively, which represented payments at 70% of each individual’s target bonus opportunity. Mr. Iwicki’s individual performance-based target bonus amount for 2022, expressed as a percentage of his 2022 base salary, is 60%. Mr. Bazemore’s individual performance-based target bonus amount for 2022, expressed as a percentage of his 2022 base salary, is 50%. Dr. Brazzell’s individual performance-based target bonus amount for 2022, expressed as a percentage of his 2022 base salary, is 45%.
Equity Incentives. Although we do not have a formal policy with respect to the grant of equity incentive awards to our executive officers, or any formal equity ownership guidelines applicable to them, we believe that equity grants provide our executives with a strong link to our long-term performance, create an ownership culture and help to align the interests of our executives and our stockholders. In addition, we believe that equity grants with a time-based vesting feature promote executive retention because this feature incentivizes our executive officers to remain in our employment during the vesting period. Accordingly, our compensation committee annually reviews the equity incentive compensation of our named executive officers and from time to time may grant equity incentive awards to them in the form of stock options and/or restricted stock units with time-based and/or performance-based vesting conditions.
In January 2021, we granted to Mr. Iwicki options to purchase 303,000 shares of our common stock and to each of Mr. Bazemore and Dr. Brazzell options to purchase 110,000 shares of our common stock. All of the options granted in January 2021 to Mr. Iwicki, Mr. Bazemore and Dr. Brazzell vest monthly as to 1/48th of the shares underlying the option. In January 2021, we also granted restricted stock units with respect to 76,000, 27,500 and 27,500 shares of our common stock to Mr. Iwicki, Mr. Bazemore and Dr. Brazzell, respectively. Such awards vest as to 1/3 of the shares on each of January 4, 2022, January 4, 2023 and January 4, 2024.
In January 2020, we granted to Mr. Iwicki options to purchase 365,000 shares of our common stock and to each of Mr. Bazemore and Dr. Brazzell options to purchase 120,000 shares of our common stock. All of the options granted in 2020 to Mr. Iwicki, Mr. Bazemore and Dr. Brazzell vest monthly as to 1/48th of the shares underlying the option. In June 2020, based on overall performance, we granted restricted stock units with respect to 49,560, 19,000 and 19,000