Item 5.02.
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(e)
Modification of Compensatory Arrangements with Executive Officers
On February 14, 2018, the Compensation Committee of the Board of Directors of Supernus Pharmaceuticals, Inc. (the Company) approved modifications of the compensation of its executive officers, as follows:
The annual base salary of Jack A. Khattar, the Companys President and Chief Executive Officer, was increased from $614,000 to $724,000. Mr. Khattar was awarded a 2017 bonus of $498,000 and was granted options to purchase 250,000 shares of common stock. In addition, Mr. Khattars bonus target for 2018 was increased to 75% of his base salary compared with 70% in 2017.
The annual base salary of Gregory S. Patrick, the Companys Vice President and Chief Financial Officer, was increased from $351,000 to $362,000. Mr. Patrick was awarded a 2017 bonus of $143,000 and was granted options to purchase 30,000 shares of common stock. Mr. Patricks bonus target for 2018 is unchanged from 2017 and is 40% of his base salary.
The annual base salary of Stefan K.F. Schwabe, M.D., Ph.D., the Companys Executive Vice President and Chief Medical Officer, was increased from $378,000 to $390,000. Dr. Schwabe was awarded a 2017 bonus of $159,000 and was granted options to purchase 30,000 shares of common stock. Dr. Schwabes bonus target for 2018 is unchanged from 2017 and is 40% of his base salary.
The annual base salary of Padmanabh P. Bhatt, Ph.D., the Companys Senior Vice President, Intellectual Property and Chief Scientific Officer, was increased from $358,000 to $369,000. Dr. Bhatt was awarded a 2017 bonus of $137,000 and was granted options to purchase 30,000 shares of common stock. Dr. Bhatts bonus target for 2018 is unchanged from 2017 and is 35% of his base salary.
The annual base salary of Victor L. Vaughn, the Companys Senior Vice President of Sales & Marketing, was increased from $331,000 to $340,000. Mr. Vaughn was awarded a 2017 bonus of $145,000 and was granted options to purchase 33,000 shares of common stock. Mr. Vaughns bonus target for 2018 is unchanged from 2017 and is 40% of his base salary.
These increases were the result of the Compensation Committees annual compensation review for executive officers. These increases in annual base salary became effective on January 1, 2018, and are consistent with the Companys industry peer group and were recommended to the Compensation Committee by Radford, its independent compensation consulting company.
Vesting for all stock option grants will occur annually in equal increments over a four year period. The exercise price for the executive officer option grants is $39.40 per share, based on the closing price of February 14, 2018, the date of approval of the grants by the Compensation Committee. All other terms and conditions of the Companys compensatory arrangements with these executive officers remain unchanged.
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