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The table below summarizes the compensation for Ulysses, who was appointed as the Chief Human Resources Officer (CHRO) of Gamma Corporation, a publicly-traded company in



The table below summarizes the compensation for Ulysses, who was appointed as the Chief Human Resources Officer (CHRO) of Gamma Corporation, a publicly-traded company in the automotive industry, effective June 1, 2022. Determine the deductible portion of Ulysses's compensation on Gamma Corporation's 2023 corporate income tax return.

ComponentAmount ($)
Base Salary800,000
Annual Bonus100,000
Stock Options5,000

Ulysses's employment contract stipulates that his 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.

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