Other Elements of Compensation
Perquisites, Health, Welfare and Retirement Benefits
Our named executive officers were eligible to participate in all of our employee benefit plans, such as medical, dental, vision, group life, and disability
insurance, in each case on the same basis as our other employees. We do not provide perquisites or personal benefits to our named executive officers. We do, however, pay the premiums for term life insurance for all of our employees, including our
named executive officers. We provide a 401(k) plan to our employees, including our current named executive officers, as discussed in the section below entitled 401(k) Plan.
401(k) Plan
We maintain a defined contribution
employee retirement plan for our employees, including our named executive officers. Our 401(k) plan is intended to qualify as a tax-qualified plan under Section 401 of the Code so that contributions to
our 401(k) plan, and income earned on such contributions, are not taxable to participants until withdrawn or distributed from the 401(k) plan. Our 401(k) plan provides that each participant may contribute a portion of his or her pre-tax compensation, up to a statutory limit, which was $19,500 and $20,500 for 2021 and 2022, respectively. Participants who are at least 50 years old can also make
catch-up contributions, which for 2022 can be up to an additional $6,500. Under our 401(k) plan, each employee is fully vested in his or her deferred salary contributions. Employee contributions
are held and invested by the plans trustee, subject to participants ability to give investment directions by following specified procedures. In 2022, we provided matching contributions of up to 50% of the first 4% of each employees
eligible contributions to the 401(k) plan.
Key Actions Taken After Fiscal Year 2022 CEO Transition
Dr. Violin stepped down from his role as President and Chief Executive Officer of the Company and as a member of the Board, effective February 6,
2023. We entered into the Violin Separation Agreement with Dr. Violin in connection with this transition.
Pursuant to the terms of the Violin
Separation Agreement, Dr. Violin became entitled to receive the following severance benefits: (i) continued payment of his current annual base salary for a period of 18 months following the Separation Date, (ii) a one-time payment equal to his earned annual bonus for fiscal year 2022 to the extent accrued and unpaid as of the date of the Violin Separation Agreement, (iii) a
one-time payment equal to $36,566, (iv) 12 months of accelerated vesting of all unvested and outstanding stock options previously awarded to Dr. Violin, and (v) payment of Dr. Violins
COBRA premiums for up to 18 months (or, if sooner, until he receives substantially similar coverage from another employer or ceases to be eligible for COBRA coverage).
Following his separation from the Company, Dr. Violin agreed to serve as a consultant to the Company for a term of 12 months. In exchange for providing
consulting services, Dr. Violin received an additional 12 months of vesting of all unvested and outstanding stock options previously awarded. Such options will continue to vest in accordance with their existing monthly vesting schedules,
subject to Dr. Violins continued service through the applicable vesting dates. Unvested options that do not otherwise vest will fully vest upon a change in control in the event such a transaction occurs on or prior to the 15-month anniversary of February 6, 2023.
In connection with Mr. Myers appointment as President and
Chief Executive Officer effective February 6, 2023, Mr. Myers entered into an employment agreement with the Company. Pursuant to the terms of his employment agreement, Mr. Myers is entitled to an annual base salary and target bonus
opportunity, currently set at $725,000 and 60% of his base salary, respectively, and is eligible to participate in, subject to applicable eligibility requirements, all of our benefits plans and fringe benefits and programs that may be provided to
our senior executives from time to time. In connection with his commencement of employment, Mr. Myers was also awarded an option to purchase up to 1,000,000 shares of the Companys common stock, with an exercise price of $35.80 per share
and an award of 250,000 restricted stock units (collectively, the Initial Equity Award). The
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