Engel received 225 K bonus for 2012---he exceeded expectations
6.5.5 Compensation of the Chief Executive Officer
The compensation of the President and Chief Executive Officer is governed by the Corporation's executive compensation policy described in Section 6.2, "Compensation of Executive Officers", and the President and Chief Executive Officer participates together with the other Named Executive Officers in all of the Corporation's incentive plans.
Dr. Engel's total earned salary for 2012 was $443,601, which places him at approximately 10% below the 50 th percentile in the Reference Group.
Based upon the results attained versus established goals for 2012, as described in Section 6.3.7, "Short-Term Incentive Compensation", the Governance Committee determined that the individual performance of Dr. Engel surpassed expectations in a number of key strategic areas, including alliance management and business development with existing and potential partners and collaborators. See Section 6.3.2, "Risk Assessment of Executive Compensation Program" above for more details on such goals.
The Governance Committee recommended, and the Board approved, in the best interests of the Corporation and considering its financial situation, that any bonus awarded to Dr. Engel in respect of the 2012 year be payable entirely in the form of stock options. Based on the foregoing, the Governance Committee determined that Dr. Engel's contributions to the achievement of the Corporation's goals merited an equity-based bonus in an amount of $225,015, paid through the granting of 133,400 stock options, representing a non-cash bonus payout of 100% of his maximum bonus amount.The terms of such stock option grant provide for accelerated vesting conditions, in order to allow these stock options to serve their purpose as a replacement for the CEO's 2012 annual bonus that would otherwise have been paid in cash. See Section 6.3.7, "Short-Term Incentive Compensation" above for more details on such grants.
For the financial year ended December 31, 2012, the Governance Committee recommended that no stock options be granted to the President and Chief Executive Officer under the long-term equity compensation plan. See Section 6.3.8, "Long-Term Equity Compensation Plan of Executive Officers-Summary of the Stock Option Plan", for a complete description of the Stock Option Plan