Penelope was recruited to serve as the Chief Human Resources Officer (CHRO) of Epsilon Corporation, a privately-held company in the automotive industry, effective June 1, 2022. Throughout the fiscal year 2023, Epsilon Corporation compensated Penelope as follows:

• Base Salary: $800,000
• Annual Bonus: $100,000
• Stock Options: Granted 5,000 stock options with an exercise price of $70 per share at the time of grant.

Penelope's employment contract stipulates that her bonus is based on achieving specific employee engagement and retention goals. The stock options vest over a four-year period, with 25% vesting annually beginning on the grant date.

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