Tanner was hired as the Chief Executive Officer (CEO) of Iota Corporation, a privately-owned company in the energy sector, effective February 1, 2022. Throughout the fiscal year 2023, Iota Corporation compensated Tanner as follows:

• Base Salary: $2,500,000
• Performance Bonus: $500,000
• Stock Grants: Received 12,000 shares of restricted stock with a fair market value of $85 per share at the time of grant.

Tanner's employment agreement stipulates that his bonus is contingent upon achieving specific company-wide performance objectives. The restricted stock vests over a four-year period, with 25% vesting annually beginning on the grant date.

Calculate the deductible portion of Tanner's compensation on Iota Corporation's 2023 corporate income tax return.