Belt Tightening for Harte Hanks Leaders

US marketing solutions firm Harte Hanks has announced 'significant changes to its executive and board compensation' for the current year, including a 35 percent cut in the base salary of CEO Karen Puckett, plus changes to severance deals and Board compensation.

The company's finances have been in the spotlight since the New York Stock Exchange warned it over non-compliance last August, its share price having dropped below one dollar. Last month, it announced its would be streamlining its top team and not replacing departing EVP, COO and CTO Shirish Lal; and that IT consultancy and business process services company Wipro had acquired a $9.9m minority stake in the firm.

In addition, Puckett (pictured) will not be eligible for a cash annual incentive plan payment for 2018.

The other key changes affect Control Severance Agreements and Board Compensation. The CEO and 'several other executives' have agreed to reduce the multiple applied to calculate potential severance payments, while 'all executives' have agreed to caps on the potential growth in their performance-based equity awards. Non-employee director compensation has been cut wth the elimination of meeting fees, the reduction of annual cash retainers (from $45k to $40k) and of committee chair retainers: directors have also elected to take a significant portion of their retainer compensation in the form of stock, as well as (most directors) waiving all compensation for board service for the last third of 2017.

Scott Key, Chairman of the Compensation Committee, said the changes should reduce cash executive compensation by over a third compared to 2017, and Board compensation by at least a quarter; while increasing the proportion of equity compensation.

Web site: www.hartehanks.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.