Major Bonuses for 22nd Century Executives

The chief executive of 22nd Century Group received $675,000 bonus, bringing his total compensation for fiscal 2020 to $1.04 million, reports The Winston-Salem Journal, citing a regulatory filing this week.

James Mish became chief executive on June 22.

22nd Century said when Mish was hired that his starting base salary would be $450,000 annually.

President and Chief Operating Officer Michael Zercher received a 26.1 percent jump in salary to $366,451. He was promoted to president during the period before Mish was hired.

Zercher received a $366,100 bonus, stock awards valued at $447,831 and total compensation of $1.21 million, up 20.3 percent.

John Franzino was hired in June as chief financial officer and treasurer. He was paid $158,213 in salary, a $125,000 bonus and total compensation of $435,248.

22nd Century reported a $19.7 million loss for fiscal 2020 compared with a $26.5 million loss in fiscal 2019. The company derives most of its revenue from producing traditional cigarettes for third-party customers.

The company is awaiting a Food and Drug Administration decision on its modified-risk tobacco product application, which would allow it to advertise products as reduced harm or reduced risk compared with traditional cigarettes.

A specialist in low-nicotine cigarettes, 22nd Century expects to benefit greatly from an FDA plan to mandate nonaddictive nicotine levels in cigarettes.

22nd Century will hold a virtual shareholder meeting on May 20.