Jacob was hired as the Chief Marketing Officer (CMO) of Theta Corporation, a publicly-traded company in the retail sector, effective July 1, 2022. Throughout the fiscal year 2023, Theta Corporation compensated Jacob as follows:

• Base Salary: $1,100,000
• Annual Bonus: $160,000
• Stock Options: Granted 7,000 stock options with an exercise price of $65 per share at the time of grant.

Jacob's employment contract specifies that his bonus is based on achieving specific marketing campaign success metrics. The stock options vest over a five-year period, with 20% vesting annually beginning on the grant date.

Determine the deductible portion of Jacob's compensation on Theta Corporation's 2023 corporate income tax return.