(6)
Mr. Herman joined the Company in June 2018 and therefore received a prorated bonus for 2018.
(7)
Dr. Rajah joined the Company in June 2020 and therefore received a prorated bonus for 2020.
Narrative Disclosure to Summary Compensation Table
Base Salary
In 2018, we paid annual base salaries of $395,002 to Mr. Gad, $470,000 to Dr. Møller, $345,000 to Mr. Kruse and $202,587 to Mr. Herman. Mr. Herman joined the Company on June 8, 2018 and the salary for Mr. Herman represents his base salary earned from his June 8, 2018 start date. Dr. Rajah was not employed by us during 2018.
In 2019, we paid annual base salaries of $440,000 to Mr. Gad, $550,00 to Dr. Møller, $392,000 to Mr. Kruse, $367,200 to Mr. Herman. Dr. Rajah was not employed by us during 2019.
In 2020, we paid annual base salaries of $470,800 to Mr. Gad, $574,000 to Dr. Møller, $420,700 to Mr. Kruse, $403,920 to Mr. Herman and $171,453 to Dr. Rajah. Dr. Rajah joined the Company on June 2, 2020 and the salary for Dr. Rajah represents his annual base salary of $293,920 prorated from his June 2, 2020 start date.
In December 2020, our Board of Directors raised the base salary of each of Mr. Gad, Dr. Møller and Mr. Kruse to $500,000, $630,000 and $464,000, respectively, for fiscal 2021 effective as of January 1, 2021 (an increase of 6.2% compared to the 2020 base salary for Mr. Gad, an increase of 9.8% for Dr. Møller compared to his 2020 base salary and an increase of 10.3% for Mr. Kruse compared to his 2020 base salary). In addition, at the same time, the base salary for each of Mr. Herman and Dr. Rajah was increased to $420,077 and $326,132, respectively (an increase of 4.0% compared to the 2020 base salary for Mr. Herman and an increase of 11.0% for Dr. Rajah compared to his 2020 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. For additional information regarding the employment agreements of our named executive officers, see the subsection herein entitled “— Employment Agreements”.
Annual Bonus
From time to time, our Board of Directors has approved discretionary annual cash bonuses to our executive officers with respect to their prior year performance. Beginning 2019 our Board of Directors began to establish certain predetermined annual cash bonus performance targets for Mr. Gad, Dr. Møller and Mr. Kruse.
The other named executive officers have been awarded discretionary annual cash bonuses which, for Mr. Herman was in an amount of 35% of his base salary and 25% for Dr. Rajah (prorated from his June 2020 start date). Beginning in 2021, cash bonuses awarded to all named executive officers will be performance-based with predetermined annual cash bonus performance targets.
In December 2018, our Board of Directors approved discretionary cash bonuses for Mr. Gad, Dr. Møller and Mr. Kruse in the amounts of $191,575, $227,950 and $167,325, respectively, for services performed during 2018. Such amounts were paid in March 2019. Mr. Herman received a discretionary cash bonus in the amount of $63,000 for services performed during 2018. Mr. Herman joined the Company on June 8, 2018 and, therefore, received a prorated bonus. Dr. Rajah was not employed by us in 2018.
In January 2020, our Board of Directors approved discretionary cash bonuses for Mr. Gad, Dr. Møller and Mr. Kruse in the amounts of $242,000, $332,750 and $215,600, respectively, for services performed during 2019. Such amounts were paid in January 2020. The cash bonus for 2019 had a target of 50% of Mr. Gad’s and Mr. Kruse’s annual base salary whereas for Dr. Møller, it was set to 55% of his annual base salary. The cash bonuses paid reflect that each of Mr. Gad, Dr. Møller and Mr. Kruse had met 110% of their 2019 targets. Mr. Herman received a discretionary cash bonus in the amount of $128,520 for services performed during 2019. Dr. Rajah was not employed by us in 2019.