Company: SION
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001193125-25-101830
Chunk: 40

Company: Sionna Therapeutics, Inc.
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 40
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 Bonus payments are based upon the assessment of our performance measured against prospectively determined objectives, as determined by our board of directors or our compensation committee, as applicable.

For the fiscal year ended December 31, 2024, each NEO was eligible to earn an annual cash bonus based on the achievement of certain corporate performance metrics, and each performance metric was weighted based on a range of 5% to 50%, with the weighted percentages totaling 100%. The corporate performance goals for 2024 annual bonuses for our NEOs related to the achievement of certain preclinical and clinical milestones, the building of our organizational capabilities, and the progression of certain strategic initiatives. The fiscal year 2024 annual bonus targets for Mr. Cloonan, Ms. Ridloff and Dr. McKee were 50%, 40% and 40%, respectively, of their annual base salaries.

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Our board of directors determined that, for fiscal year 2024, our corporate performance objectives were achieved at 110% of target, and based on such corporate performance achievement, Mr. Cloonan, Ms. Ridloff and Dr. McKee earned an annual bonus for fiscal year 2024 equal to $278,404, $197,976 and $197,976, respectively.

Equity-Based Compensation

Each of our NEOs holds outstanding equity awards under our 2020 Stock Option and Grant Plan (the “2020 Plan”). We believe that equity grants provide our executives with a strong link to our long- term performance, create an ownership culture, help to align the interests of our executives and our stockholders, and enhance executive retention. The market for qualified and talented executives in the biopharmaceutical industry is highly competitive, and we compete for talent with many companies that have greater financial resources than we do. Accordingly, we believe equity compensation is a crucial component of any competitive executive compensation package we offer. As such, our board of directors or our compensation committee periodically reviews the equity incentive compensation of our executives and may grant equity incentive awards to them from time to time.

In March 2024, following the sale and issuance of our Series C Preferred Stock, pursuant to the Series C Preferred Stock Purchase Agreement, dated as of March 4, 2024, our board of directors granted Mr. Cloonan, Ms. Ridloff and Dr. McKee an incentive stock option to purchase 656,984, 145,751 and 141,865 shares of our common stock, respectively. Such