The table below summarizes the compensation for Jack, who was hired as the Chief Executive Officer (CEO) of Iota Corporation, a privately-owned company in the energy sector, effective February 1, 2022. Determine the deductible portion of Jack's compensation on Iota Corporation's 2023 corporate income tax return.

Component	Amount ($)
Base Salary	2,500,000
Performance Bonus	500,000
Stock Grants	12,000

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