Two co-founders and the board of directors at Cleveland BioLabs Inc. have voluntarily decided to reduce their base pay by 20 percent, which the company described today as a cost-cutting move.
That includes Chief Executive Officer Yakov Kogan, whose base pay will go from $345,000 to $276,000, and Chief Scientific Officer Andrei Gudkov, whose base pay will go from $138,677 to $110,942.
The pay cuts will go into effect immediately for Kogan and Gudkov, while board member reductions are scheduled to take place following Cleveland BioLabs' June 11 shareholders meetings. Directors annual base compensation is scheduled to go from $50,000 to $40,000.
"We believe in CBLI's potential and are committed to achieving success," Kogan said. "As co-founders and directors, we are taking active steps to focus as many resources as possible on our development programs and the retention of key staff."
Cleveland BioLabs has been in existence for more than 10 years and received tens of millions of dollars from investors and grants, but still doesn't have a drug ready for the market. It recently split off a large chunk of its operations into a separate entity so that it could focus on finishing the development of its drug candidates. But its most advanced candidate, Entolimod, which has shown promise treating the effects of radiation and some types of cancers, was dealt a recent blow by the federal government when it was denied access to the Biomedical Advanced Research and Development Authority.
BioLabs executives continue work on Entolimod, with the help of funding from the Russian government, and are now hoping it gains "emergency use pre-authorization" from the U.S. Food and Drug Admninisrtration, which would allow it to sell doses to the federal government.