Annual base salary
We pay our NEOs a base salary to compensate them for the satisfactory performance of services rendered to us. The base salary payable to each
NEO is intended to provide a fixed component of compensation reflecting the executives skill set, experience, role and responsibilities. Base salaries for our NEOs have generally been set at levels deemed necessary to attract and retain
individuals with superior talent.
Dr. Lims annual base salary was increased from $300,000 to $453,800, effective
January 2, 2021. Dr. Lins and Mr. Garners annual base salary of $430,000 and $375,000, respectively, were established in connection with their commencement of employment in January 2021 and April 2021, respectively.
In July 2021, in connection with the consummation of our IPO, each of Dr. Lim, Dr. Lin and Mr. Garner received a base salary
increase to $549,900, $442,900 and $394,200, respectively.
In February 2022, each of Dr. Lim, Dr. Lin and Mr. Garner
received a base salary increase to $593,100, $458,400 and $408,500, respectively, effective January 1, 2022.
We expect that base
salaries for our NEOs will be reviewed periodically by our compensation committee, with adjustments expected to be made generally in accordance with the considerations described above and to maintain base salaries at competitive levels.
Bonus compensation
From time to time,
our Board or compensation committee may approve bonuses for our NEOs based on individual performance, company performance, or as otherwise determined appropriate. Pursuant to their respective employment letter agreements, each NEO has an established
target annual bonus amount. For 2021, our NEOs target bonuses, expressed as a percentage of annual base salary, were 50% for Dr. Lim and 40% for Dr. Lin and Mr. Garner, which, for each of Dr. Lin and Mr. Garner, were
increased from 35% in July 2021 in connection with the consummation of our IPO.
For 2021, annual bonuses were based on corporate
performance relative to key corporate objectives tied to clinical and regulatory priorities as well as operational and financial objectives. Following a comprehensive review of our corporate performance relative to these corporate objectives, our
compensation committee approved the payment of annual bonuses to our NEOs at 125% of target levels. Mr. Garners 2021 annual bonus was prorated to reflect the portion of the year that elapsed following his commencement of employment. The
annual bonuses paid to our NEOs for 2021 are reflected in the Summary Compensation Table above.
In February 2022, Dr. Lims
target bonus, expressed as a percentage of annual base salary, was increased to 60%.
Equity-based incentive awards
Our equity-based incentive awards are designed to align our interests and the interests of our stockholders with those of our employees and
consultants, including our NEOs. The Board and compensation committee is responsible for approving equity grants. We typically grant equity awards to new hires upon their commencing employment with us. Generally, our equity awards vest over four
years, subject to the employees continued employment with us on each vesting date.
In January 2021, we granted Dr. Lin options
to purchase 1,145,833 shares of our common stock under our 2018 Equity Incentive Plan (the 2018 Plan) in connection with his commencement of employment. The options were granted at an exercise price of $3.36 per share, which our Board determined was
equal to the fair market value per share of our common stock on the date of grant. Twenty-five percent of the options vest on the
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