The top three executives at Tengion Inc. received slight salary increases during fiscal 2013, but their overall compensation dropped, the company reported in a regulatory filing Friday.
The Winston-Salem regenerative-medicine company is best known for the research of Dr. Anthony Atala, its founder, who runs the Wake Forest Institute for Regenerative Medicine.
John Miclot, the company’s president and chief executive, received a 2.8 percent hike in salary to $462,373. His non-equity incentive-plan compensation rose by $6,075 to $208,575.
All other compensation for Miclot dropped from $100,631 to $38,980. When Miclot took over as top executive in December 2011, the company offered reimbursement for a furnished apartment in Winston-Salem and associated utility expenses, a lease for an automobile for use in Winston-Salem, associated insurance and weekly commuting costs and the taxes associated with those benefits. In 2013, he received reimbursement only for the weekly commuting costs.
Miclot’s total compensation was down 37.6 percent to $709,930.
None of Tengion’s three named executives received option or stock awards in 2013. Miclot qualified for option and stock awards with a combined value of $384,371 on the date they were awarded in 2012.
Biotechnology companies, such as Tengion, tend to report major losses for many quarters after going public because their research and development costs are much greater than their revenue sources.
In Tengion’s case, it doesn’t report quarterly revenue at all. As a result, most analysts put their focus on research updates.
For fiscal 2013, the company had a loss of $16.9 million compared with $18.9 million in fiscal 2012.
Timothy Bertram, president of research and development and chief scientific officer, received a 2 percent raise in salary to $380,817 and a 3 percent increase in nonequity incentive-plan compensation to $137,428.
Brian Davis, chief financial officer, received a 5.4 percent increase in salary to $336,812 and a 12.1 percent increase in nonequity incentive-plan compensation to $112,612.
For two years, the company has been in a race to achieve a clinical breakthrough with its kidney and urinary research – thus bolstering investor confidence – before its capital runs out. The company has cut back on expenses, including eliminating 30 of its 52 jobs in November 2011.
In June, Tengion announced it had provided a key investor, Celgene Corp., with the first shot at licensing all of its most promising research as part of securing an additional $15 million in debt financing.
It also announced the closing of an $18.6 million financing in which the company issued priority debt to existing investors RA Capital Management LLC, Deerfield Management Co. LP, Bay City Capital and HealthCap, and to new investors that include Perceptive Life Sciences and QVT Financial LP.
As of Dec. 31, Tengion said it held $21.9 million in cash and cash equivalents. It expects to be able to fund its operations through the end of the year.
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