BALTIMORE, MD – The chief executive of Baltimore-based Cerecor Inc. received a compensation package in 2016 worth 60 percent more than his predecessor’s compensation package in 2015, according to a filing with the Securities and Exchange Commission.
Dr. Uli Hacksell’s total compensation package for 2016 was valued at $1.7 million, compared to the $1.1 million package received by Cerecor’s former President and Chief Executive Blake Paterson in 2015.
Hacksell’s package, however, included a stock option award that the company valued at $1.2 million on the first day of Hacksell’s employment with Cerecor, which was Jan. 1, 2016.
The award included the option to purchase 360,459 shares at $3.35 each, but Cerecor’s stock price has since fallen to 68 cents per share – nullifying the option’s original value.
According to the filing, none of the three named executive officers received a bonus relative to their achievement goals for the 2016 fiscal year.
Clinical-stage biopharmaceutical company Cerecor said in its annual report released March 14 that the company will require additional capital to continue to fund its short-term operations and finance the advancement of its product candidates.
As of Dec. 31, 2016, the company had $5.1 million in cash and cash equivalents, compared to $4.3 million in current liabilities.
The company also announced on Nov. 29 that one of its anti-depressive drugs failed to produce statistically significant results as part of its phase 2 clinical trials.
Meanwhile, Hacksell’s base salary in 2016 totaled $500,000, up 26.5 percent from Paterson’s base salary of $395,208 in 2015.
Ronald Marcus, Cerecor’s chief medical officer, received a total compensation package valued at $581,125, an increase of 15.2 percent from 2015. The only other executive named in the filing, Chief Business Officer John Kaiser, saw his compensation package fall 9.6 percent to $450,411 for the year.
Cerecor’s annual shareholder meeting will be held on May 12 at law firm Cooley LLP’s New York City offices. Shareholders will vote on the election of two board members, as well as to ratify the selection of Ernst & Young LLP as Cerecor’s accounting firm for the 2017 fiscal year.
Cerecor reported a net income loss per share of 18 cents in the fourth quarter – for a total net loss of $1.6 million in the quarter.
The proxy filing can be found here.
This story is from the Maryland Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism.