| | Important Notice Regarding the Availability of Proxy Materials for the Stockholders’ Meeting to Be Held Virtually, Via Live Webcast at www.virtualshareholdermeeting.com/CARA2020, at 11:00 a.m., Eastern Daylight Time on Thursday, June 4, 2020. | | |
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The proxy statement and annual report to stockholders are available at www.proxyvote.com.
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| | You are cordially invited to attend the virtual Annual Meeting. Whether or not you expect to attend the Annual Meeting, PLEASE VOTE YOUR SHARES. As an alternative to voting online at the Annual Meeting, you may vote via the internet, by telephone or, if you receive a paper proxy card, by mailing the completed proxy card. Voting instructions are provided in the Notice of Internet Availability of Proxy Materials, or, if you receive a paper proxy card by mail, the instructions are printed on your proxy card. | | |
| | Even if you have voted by proxy, you may still vote online if you attend the Annual Meeting. Please note, however, that if your shares are held of record by a broker, bank or other agent and you wish to vote at the Annual Meeting, you must follow the instructions from such organization and will need to obtain a proxy issued in your name from that record holder. | | |
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Internet proxy voting is provided to allow you to vote your shares online, with procedures designed to ensure the authenticity and correctness of your proxy vote instructions. However, please be aware that you must bear any costs associated with your internet access, such as usage charges from internet access providers and telephone companies.
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Name
|
| |
Audit
|
| |
Compensation
|
| |
Nominating
and Corporate Governance |
| |||||||||
Harrison M. Bains, Jr.
|
| | | | X* | | | |
|
| |
|
| ||||||
Jeffrey Ives, Ph.D.
|
| | | | | | | | | | X | | | | | | X | | |
Christopher Posner
|
| | | | X | | | | | | X | | | | | | | | |
Martin Vogelbaum
|
| | | | X | | | | | | X* | | | | | | X* | | |
Total meetings during 2019
|
| | | | 4 | | | | | | 7 | | | | | | 1 | | |
Name
|
| |
Age
|
| |
Position(s)
|
|
Derek Chalmers, Ph.D., D.Sc. | | |
56
|
| | President, Chief Executive Officer and Director | |
Frédérique Menzaghi, Ph.D. | | |
53
|
| | Chief Scientific Officer and Senior Vice President, Research and Development | |
Joana Goncalves, M.D. | | |
46
|
| | Chief Medical Officer | |
Richard Makara | | |
49
|
| | Vice President, Head of Accounting & Controller | |
Scott M. Terrillion | | |
57
|
| | General Counsel, Secretary and Chief Compliance Officer | |
Name
|
| |
Age
|
| |
Position
|
|
Martin Vogelbaum | | |
56
|
| | Director | |
Harrison M. Bains, Jr. | | |
76
|
| | Director | |
Jeffrey Ives, Ph.D. | | |
69
|
| | Director | |
Christopher Posner | | |
50
|
| | Director | |
Director
|
| |
Fees paid
in cash(1) |
| |
Stock
awards(2) |
| |
Option
awards(3)(4) |
| |
Total
|
| ||||||||||||
Martin Vogelbaum
|
| | | $ | 108,000 | | | | | $ | 122,820 | | | | | $ | 121,704 | | | | | $ | 352,524 | | |
Harrison M. Bains, Jr.
|
| | | | 60,000 | | | | | | 122,820 | | | | | | 121,704 | | | | | | 304,524 | | |
Jeffrey Ives, Ph.D.
|
| | | | 51,500 | | | | | | 122,820 | | | | | | 121,704 | | | | | | 296,024 | | |
Christopher Posner
|
| | | | 57,500 | | | | | | 122,820 | | | | | | 121,704 | | | | | | 302,024 | | |
Director
|
| |
RSUs(1)
|
| |
Number of Shares
Underlying Options |
| ||||||
Martin Vogelbaum
|
| | | | 6,000 | | | | | | 90,500(2) | | |
Harrison M. Bains, Jr.
|
| | | | 6,000 | | | | | | 90,500(2) | | |
Jeffrey Ives, Ph.D.
|
| | | | 6,000 | | | | | | 75,500(2) | | |
Christopher Posner
|
| | | | 6,000 | | | | | | 44,000(3) | | |
| | |
Member
Annual Service Retainer |
| |
Chairperson / Lead Independent
Director and Committee Chair Annual Service Retainer |
| ||||||
Board of Directors
|
| | | $ | 40,000 | | | | | $ | 75,000 | | |
Audit Committee
|
| | | | 10,000 | | | | | | 20,000 | | |
Compensation Committee
|
| | | | 7,500 | | | | | | 15,000 | | |
Nominating and Corporate Governance Committee
|
| | | | 4,000 | | | | | | 8,000 | | |
|
What we do:
|
| |
What we do not do:
|
|
|
✓
Performance metrics tied to company performance. The performance metrics for our annual executive bonus plan are tied to company performance, aligning the interests of our executives with those of our stockholders.
✓
Multi-year vesting requirements. The equity awards we grant to our executive officers generally vest over multi-year periods, consistent with current market practice and our retention objectives.
✓
Double-trigger termination rights. Our agreements with our executive officers require both a change-in-control and a termination of employment for full severance benefits to be triggered.
✓
Independent compensation committee. Our compensation committee is comprised solely of independent members of our Board.
✓
Independent compensation consultant. Our compensation committee uses an independent compensation consultant that provides no other material services to the company.
|
| |
✘
No tax gross-ups. None of our employment-related agreements provide for excise tax “gross-ups.”
✘
No special perquisites. Except as otherwise discussed below, we generally do not provide our executives with perquisites or other personal benefits that differ materially from those available to employees generally.
✘
No retirement plans other than 401(k). We do not provide any pension or other retirement benefits to our executive officers, except that we offer all employees the right to participate in a company-sponsored 401(k) plan under which we contribute 3% of their salary up to the annual Internal Revenue Code limit.
✘
No special health or welfare benefits. We do not provide our executives with any special health or welfare benefits. Our executive officers participate in the same broad-based company-sponsored health and welfare benefits programs offered to our other full-time, salaried employees.
✘
Hedging, short selling and pledging prohibited. Our insider trading policy prohibits our executive officers and directors from hedging, short selling or pledging our securities.
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|
Name and Principal Position
|
| |
Year
|
| |
Salary
|
| |
Stock
Awards(1) |
| |
Option
Awards(2) |
| |
Non-Equity
Incentive Plan Compensation(3) |
| |
All Other
Compensation(4) |
| |
Total
Compensation |
| |||||||||||||||||||||
Derek Chalmers, Ph.D., D.Sc.
President and Chief Executive Officer |
| | | | 2019 | | | | | $ | 560,000 | | | | | $ | — | | | | | $ | 2,551,783 | | | | | $ | 310,800 | | | | | $ | 11,034 | | | | | $ | 3,433,617 | | |
| | | 2018 | | | | | | 542,100 | | | | | | — | | | | | | 1,997,623 | | | | | | 238,524 | | | | | | 10,799 | | | | | | 2,789,046 | | | ||
| | | | | | | | | | | | ||||||||||||||||||||||||||||||||
Frédérique Menzaghi, Ph.D.
Chief Scientific Officer and Senior Vice President, Research and Development |
| | | | 2019 | | | | | | 438,000 | | | | | | — | | | | | | 1,628,797 | | | | | | 148,920 | | | | | | 10,914 | | | | | | 2,226,631 | | |
| | | 2018 | | | | | | 400,000 | | | | | | — | | | | | | 615,428 | | | | | | 212,000 | | | | | | 10,799 | | | | | | 1,238,227 | | | ||
| | | | | | | | | | | | ||||||||||||||||||||||||||||||||
Scott Terrillion(5)
General Counsel, Secretary and Chief Compliance Officer |
| | | | 2019 | | | | | | 400,000 | | | | | | — | | | | | | 814,399 | | | | | | 160,000 | | | | | | 11,034 | | | | | | 1,385,433 | | |
Mani Mohindru(5)(6)
Former Chief Financial Officer and Chief Strategy Officer |
| | | | 2019 | | | | | | 472,001 | | | | | | — | | | | | | 814,399 | | | | | | — | | | | | | 10,866 | | | | | | 1,297,266 | | |
| | |
Base Salary
|
| |||||||||
Named Executive Officer
|
| |
2020
|
| |
2019
|
| ||||||
Derek Chalmers, Ph.D., D.Sc.
|
| | | $ | 577,320 | | | | | $ | 560,000 | | |
Frédérique Menzaghi, Ph.D.
|
| | | | 451,546 | | | | | | 438,000 | | |
Scott Terrillion
|
| | | | 412,371 | | | | | | 400,000 | | |
Mani Mohindru(1)
|
| | | | — | | | | | | 472,001 | | |
Named Executive Officer
|
| |
Target Bonus
|
| |||
Derek Chalmers, Ph.D., D.Sc.
|
| | | | 60% | | |
Frédérique Menzaghi, Ph.D.
|
| | | | 40 | | |
Scott Terrillion
|
| | | | 40 | | |
Named Executive Officer
|
| |
Number of
RSUs |
| |
Grant Date
Fair Value(1) |
| ||||||
Derek Chalmers, Ph.D., D.Sc.
|
| | | | 60,000(2) | | | | | $ | — | | |
Frédérique Menzaghi, Ph.D.
|
| | | | 75,000(3) | | | | | | — | | |
Scott Terrillion
|
| | | | 25,000(2) | | | | | | — | | |
Mani Mohindru
|
| | | | 25,000(2) | | | | | | — | | |
Named Executive Officer
|
| |
Number Shares
Underlying Options(1) |
| |
Grant Date Fair
Value(2) |
| ||||||
Derek Chalmers, Ph.D., D.Sc.
|
| | | | 235,000 | | | | | $ | 2,551,783 | | |
Frédérique Menzaghi, Ph.D.
|
| | | | 150,000 | | | | | | 1,628,797 | | |
Scott Terrillion
|
| | | | 75,000 | | | | | | 814,399 | | |
Mani Mohindru
|
| | | | 75,000 | | | | | | 814,399 | | |
|
Scenario and Executive
|
| |
Salary(1)
|
| |
Payment of
Employer Health Insurance Continuation(1) |
| |
Bonus(1)
|
| |
Acceleration of
Unvested Equity Awards |
|
|
Other Than Within 12 Months
Following a Change in Control: |
| | | | | | | | | | | | |
| Dr. Chalmers | | |
12 months
|
| |
12 months
|
| |
Prorated Target Bonus
|
| |
None
|
|
| Dr. Menzaghi | | |
6 months
|
| |
6 months
|
| |
Prorated Target Bonus
|
| |
None
|
|
|
Within 12 Months Following a
Change in Control: |
| | | | | | | | | | | | |
| Dr. Chalmers | | |
12 months
|
| |
12 months
|
| |
Prorated Target Bonus
|
| |
100% Acceleration(2)
|
|
| Dr. Menzaghi | | |
6 months
|
| |
6 months
|
| |
Prorated Target Bonus
|
| |
100% Acceleration(2)
|
|
| | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||||||||||||||
Name
|
| |
Number of
Securities Underlying Unexercised Options Exercisable |
| |
Number of
Securities Underlying Unexercised Options Unexercisable |
| |
Option
Exercise Price |
| |
Option
Expiration Date |
| |
Number of
shares or units of stock that have not vested(3) |
| |
Market value
of shares of units of stock that have not vested(4) |
| ||||||||||||||||||
Derek Chalmers, Ph.D., D.Sc.
President and Chief Executive Officer |
| | | | 80,000 | | | | | | — | | | | | $ | 11.00 | | | | | | 1/30/2024 | | | | | | 20,000 | | | | | $ | 322,200 | | |
| | | 165,000 | | | | | | — | | | | | | 10.82 | | | | | | 6/15/2025 | | | | | | | | | | | | | | | ||
| | | 178,875 | | | | | | 12,125(1) | | | | | | 6.00 | | | | | | 3/30/2026 | | | | | | | | | | | | | | | ||
| | | 154,687 | | | | | | 70,313(1) | | | | | | 17.41 | | | | | | 3/8/2027 | | | | | | | | | | | | | | | ||
| | | 82,031 | | | | | | 105,469(1) | | | | | | 14.39 | | | | | | 3/9/2028 | | | | | | | | | | | | | | | ||
| | | 44,062 | | | | | | 190,938(1) | | | | | | 16.10 | | | | | | 3/6/2029 | | | | | | | | | | | | | | | ||
Frédérique Menzaghi, Ph.D.
Chief Scientific Officer and Senior Vice President, Research and Development |
| | | | 40,000 | | | | | | — | | | | | | 11.00 | | | | | | 1/30/2024 | | | | | | 37,500 | | | | | | 604,125 | | |
| | | 60,000 | | | | | | — | | | | | | 10.82 | | | | | | 6/15/2025 | | | | | | | | | | | | | | | ||
| | | 60,937 | | | | | | 4,063(1) | | | | | | 6.00 | | | | | | 3/30/2026 | | | | | | | | | | | | | | | ||
| | | 51,562 | | | | | | 23,438(1) | | | | | | 17.41 | | | | | | 3/8/2027 | | | | | | | | | | | | | | | ||
| | | 25,265 | | | | | | 32,485(1) | | | | | | 14.39 | | | | | | 3/9/2028 | | | | | | | | | | | | | | | ||
| | | 28,125 | | | | | | 121,875(1) | | | | | | 16.10 | | | | | | 3/6/2029 | | | | | | | | | | | | | | | ||
Scott M. Terrillion
General Counsel, Secretary and Chief Compliance Officer |
| | | | 104,062 | | | | | | 30,938(2) | | | | | | 9.22 | | | | | | 11/28/2026 | | | | | | 8,334 | | | | | | 134,261 | | |
| | | 20,343 | | | | | | 26,157(1) | | | | | | 14.39 | | | | | | 3/9/2028 | | | | | | | | | | | | | | | ||
| | | 14,062 | | | | | | 60,938(1) | | | | | | 16.10 | | | | | | 3/6/2029 | | | | | | | | | | | | | | | ||
Mani Mohindru
Former Chief Financial Officer and Chief Strategy Officer |
| | | | 139,027 | | | | | | —(5) | | | | | | 14.06 | | | | | | 3/20/2020(5) | | | | | | —(5) | | | | | | —(5) | | |
| | | 14,062 | | | | | | —(5) | | | | | | 16.10 | | | | | | 3/20/2020(5) | | | | | | | | | | | | | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Audit fees(a)
|
| | | $ | 776 | | | | | $ | 361 | | |
Audit-related fees(b)
|
| | | | — | | | | | | 35 | | |
Tax fees
|
| | | | — | | | | | | — | | |
All other fees
|
| | | | — | | | | | | — | | |
Total
|
| | | $ | 776 | | | | | $ | 396 | | |
Name of beneficial owner
|
| |
Number of Shares
Beneficially Owned |
| |
Percentage of Shares
Beneficially Owned |
| ||||||
5% stockholders: | | | | | | | | | | | | | |
T. Rowe Price(1)
|
| | | | 4,660,614 | | | | | | 10.0% | | |
Blackrock, Inc.(2)
|
| | | | 3,546,310 | | | | | | 7.6 | | |
Rho Ventures VI, LP(3)
|
| | | | 3,193,057 | | | | | | 6.8 | | |
Directors and named executive officers: | | | | | | | | | | | | | |
Derek Chalmers, Ph.D., D.Sc.(4)
|
| | | | 1,721,739 | | | | | | 3.6 | | |
Frédérique Menzaghi, Ph.D.(5)
|
| | | | 371,183 | | | | | | * | | |
Scott M. Terrillion(6)
|
| | | | 186,488 | | | | | | * | | |
Mani Mohindru(7)
|
| | | | 17,441 | | | | | | * | | |
Martin Vogelbaum(8)
|
| | | | 96,500 | | | | | | * | | |
Harrison M. Bains, Jr.(8)
|
| | | | 96,500 | | | | | | * | | |
Jeffrey Ives, Ph.D.(9)
|
| | | | 74,000 | | | | | | * | | |
Christopher Posner(10)
|
| | | | 26,655 | | | | | | * | | |
All current executive officers and directors as a group
(9 persons) (11) |
| | | | 2,761,690 | | | | | | 5.7% | | |
Plan Category
|
| |
Number of shares of
common stock to be issued upon exercise of outstanding options (a) |
| |
Weighted-average
exercise price of outstanding options (b)(2) |
| |
Number of shares of
common stock remaining available for future issuance under equity compensation plans (excluding shares of common stock reflected in column (a))(c) |
| |||||||||
Equity compensation plans approved by
stockholders(1) |
| | | | 4,403,017 | | | | | $ | 14.61 | | | | | | 229,168(3) | | |
Equity compensation plans not approved by
Stockholders(4) |
| | | | 47,500 | | | | | | 25.88 | | | | | | 252,500 | | |
Total
|
| | | | 4,450,517 | | | | | | 14.73 | | | | | | 481,668 | | |