Company: TVRD
Filing Date: 2025-01-27
Form Type: S-4/A
Source: 0001104659-25-006050
Chunk: 614

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-01-27
Form: S-4/A
Chunk 614
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) | Mr. Terrillion was not a named executive officer for 2023 and, accordingly, compensation information for Mr. Terrillion for 2023 is not included in the summary compensation table. |

Narrative Disclosure to 2024 Summary Compensation Table Executive Compensation Elements The primary elements of Cara’s executive compensation program for 2024 were:

| ● | base salary; |

| ● | annual performance-based cash compensation; |

| ● | equity incentive awards; and |

| ● | severance and change in control benefits. |

In addition to these primary elements of executive compensation, Cara also offers its executive officers broad-based health and welfare benefits and 401(k) plan benefits consistent with the benefits Cara provides to its other full-time, salaried employees. Base Salary Base salary represents the fixed portion of the compensation of Cara’s executive officers, including Cara’s named executive officers, and is an important element of compensation intended to attract and retain highly-talented individuals. The purpose of base salary is to provide compensation at a level consistent with competitive practices, reflective of the role, responsibilities, skills, experience and performance of Cara’s executive officers. The Compensation Committee’s decisions on base salary levels for the named executive officers are primarily based on its review of competitive market information for comparable positions, the executive’s performance of his or her duties, criticality of the executive’s role to the execution of Cara’s corporate goals and the executive’s potential to impact future business results. Base salary is the only element of compensation that is fixed; the remainder and majority of each executive officer’s potential compensation is composed of variable compensation that is designed to incentivize shorter-term (annual) or longer-term performance. With respect to the fiscal year 2024, in February 2024 the Compensation Committee reviewed and evaluated base salaries of Cara’s executive officers and determined that 2024 base salaries would remain at the 2023 levels of $728,000, $478,400 and $463,840 for Mr. Posner, Mr. Maynard and Mr. Terrillion, respectively.

338

Annual Performance-Based Cash Compensation Pursuant to Cara’s executive bonus plan, each executive officer is eligible to receive a target bonus determined as a percentage of his or her annual base salary. Annual performance-based cash compensation is variable and its purpose is to motivate and reward Cara’s executive officers for achievement of annual goals and align management and stockholder interests by linking pay and performance. Cara’s Compensation Committee determines these target bonus percentages for each executive officer position primarily based on the range of target bonus