was paid a cash bonus of $445,200 for 2012, and (ii) was granted 30,000 shares of restricted stock and was paid a cash bonus of $369,516 for 2013. As previously disclosed, for 2014, Mr. Reading was paid a cash bonus of $721,250 on March 13, 2015 and was granted 40,000 shares of restricted stock on March 2, 2015.
Mr. McAfee joined our Company in September 2003 as Chief Financial Officer and, effective November 1, 2004, was promoted to Executive Vice President. Under his employment agreement with us (see Employment and Consulting Agreements above), Mr. McAfee’s annual base salary is subject to adjustment by the Compensation Committee. For the last three years, his annual base salary was $400,000 (during 2012), $410,000 (during 2013), and $420,000 (during 2014) and further increased to $430,000 effective as of January 1, 2015. During each of 2012, 2013 and 2014, Mr. McAfee participated in an executive incentive plan specific to such year that was approved by the Compensation Committee and filed with the SEC on Form 8-K. In accordance with such executive incentive plans, Mr. McAfee (i) was granted 18,400 shares of restricted stock and was paid a cash bonus of $256,000 for 2012, and (ii) was granted 15,000 shares of restricted stock and was paid a cash bonus of $278,880 for 2013. As previously disclosed, for 2014, Mr. McAfee was paid a cash bonus of $525,000 on March 13, 2015 and was granted 20,000 shares of restricted stock on March 2, 2015.
Mr. McDowell joined our Company in October 2003 as Vice President of Operations overseeing the west region and, effective January 24, 2005, was promoted to Chief Operating Officer. Mr. McDowell’s employment agreement with us was entered into on May 24, 2007 (see Employment and Consulting Agreements above). For the last three years, his annual base salary was $340,000 (during 2012), $365,000 (during 2013), and $377,000 (during 2014) and further increased to $400,000 effective as of January 1, 2015. During each of 2012, 2013 and 2014, Mr. McDowell participated in an executive incentive plan specific to such year that was approved by the Compensation Committee and filed with the SEC on Form 8-K. In accordance with such executive incentive plans, Mr. McDowell (i) was granted 18,000 shares of restricted stock and was paid a cash bonus of $217,600 for 2012, and (ii) was granted 15,000 shares of restricted stock and was paid a cash bonus of $230,408 for 2013. As previously disclosed, for 2014, Mr. McDowell was paid a cash bonus of $471,250 on March 13, 2015 and was granted 20,000 shares of restricted stock on March 2, 2015.
In determining the appropriate compensation for Messrs. Reading, McAfee and McDowell, the Compensation Committee evaluates our overall corporate performance under their leadership, as well as each individual contribution to key strategic, financial and development objectives. The committee utilizes a combination of quantitative measures and qualitative factors in reviewing executive performance and compensation.
Compensation Deductibility Policy
Under Section 162(m) of the Code and applicable Treasury regulations, no deduction is allowed for annual compensation in excess of $1 million paid by a publicly traded corporation to its chief executive officer and the four other most highly compensated officers. Under those provisions, however, there is no limitation on the deductibility of qualified performance-based compensation.
In general, our policy is to maximize the extent of tax deductibility of executive compensation under the provisions of Section 162(m) so long as doing so is compatible with the most appropriate methods and approaches for the design and delivery of compensation to our executive officers.