Tivity Health will pay its incoming president and CEO a little less than his predecessor but is making up for it by granting him thousands of shares that, if vested today, would be worth more than $6.4 million.
Richard Ashworth will officially join Franklin-based Tivity next week to take over from interim CEO Bob Greczyn, who stepped in when Donato Tramuto left the company in February, less than a year after overseeing the $1.4 billion acquisition of Nutrisystem. Ashworth, who had been president of Walgreens since February and before that oversaw the company’s president of operations, will be paid a salary of $900,000 — Tramuto’s 2019 base was $950,000 — and be eligible to receive an annual cash bonus of that same amount.
Ashworth’s initial three-year contract also calls for him to be granted 650,000 restricted share units that will vest at various points during the next three years. Some of those grants are to help offset the similar incentives Ashworth had to leave behind at Walgreens. Ashworth also has the chance to earn another block of 150,000 shares depending on how much his team is able to lift Tivity’s stock price between now and 2023.
Shares of Tivity (Ticker: TVTY) were up more than 1 percent to about $9.90 Tuesday morning. They started 2020 at about $20.