Aradigm Corporation (NASDAQ:ARDM) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02
On December6, 2017, the Board of Directors, or the Board, of Aradigm Corporation, or the Company, met to conduct a review of the compensation of Company’s employees, including its named executive officers.
Cash Bonus Payments and Stock Option Awards for Named Executive Officers
At the meeting, the Board authorized and approved cash bonus payments for fiscal year 2017 and stock option awards under the Company’s 2015 Equity Incentive Plan to certain of the Company’s employees, including named executive officers Igor Gonda, PhD, Chief Executive Officer, Juergen Froehlich, MD, Chief Medical Officer and Nancy Pecota, Chief Financial Officer. The following table sets forth the specific cash bonus payments and stock option awards authorized and approved for each of Dr.Gonda, Dr.Froehlich and Ms.Pecota:
|
NamedExecutiveOfficers(1) |
CashBonusPayments | StockOptionAwards(2) | |
|
Igor Gonda |
$ | 174,680 | 180,000 |
|
Juergen Froehlich |
$ | 136,448 | 150,000 |
|
Nancy Pecota |
$ | 114,368 | 120,000 |
| (1) | These individuals were listed as named executive officers in the Company’s proxy statement filed with the Securities and Exchange Commission on April19, 2017. |
| (2) | A portion of each Stock Option Award shall vest quarterly over four years following the date of grant, and a portion of each Stock Option Award shall vest only upon the achievement of certain performance-based milestones. |
The Board authorized and approved the foregoing cash bonuses for each of the named executive officers.Bonuses were calculated using a formula that includes: (a)the individual’s base salary for the 2017 fiscal year, (b)a weighting of the individual’s position with the Company, and (c)such other discretionary factors as the Board determined appropriate given the Company’s overall performance, including the achievement of various corporate objectives.
Increases to Base Salary Compensation for Named Executive Officers
The Board conducted a review of the base salaries of the Company’s officers and employees, including its named executive officers. The following table sets forth the 2018 base salaries authorized and approved for each of Dr.Gonda, Dr.Froehlich and Ms.Pecota:
|
NamedExecutiveOfficers(1) |
2017BaseSalary | 2018BaseSalary(2) | ||
|
Igor Gonda |
$ | 436,700 | $ | 449,801 |
|
Juergen Froehlich |
$ | 426,400 | $ | 439,192 |
|
Nancy Pecota |
$ | 357,400 | $ | 371,696 |
| (1) | These individuals were listed as named executive officers in the Company’s proxy statement filed with the Securities and Exchange Commission on April19, 2017. |
| (2) | The 2018 base salaries are effective January1, 2018. |
About Aradigm Corporation (NASDAQ:ARDM)
Aradigm Corporation is a pharmaceutical company focused on the development and commercialization of products for the treatment and prevention of severe respiratory diseases. The Company’s lead product candidate is Pulmaquin inhaled ciprofloxacin, which is in Phase III clinical trials. It offers AERx pulmonary drug delivery platform and other technologies. Its partnered programs under development include Inhaled Ciprofloxacin. It is also engaged in developing Smoking Cessation Therapy (ARD-1600 Inhaled Nicotine). Its lead development candidates are its formulations of the potent antibiotic ciprofloxacin (Pulmaquin (ARD-3150) and Lipoquin (ARD-3100)) that are delivered by inhalation for the management of infections associated with the severe respiratory diseases, such as cystic fibrosis (CF) and non-cystic fibrosis bronchiectasis (BE). Pulmaquin uses slow release liposomal formulation (Lipoquin) mixed with a small amount of ciprofloxacin dissolved in an aqueous medium.