The directors of Tivity Health have extended until year’s end the 25 percent salary cuts for the fitness and nutrition services company’s top five executives, although the company will replace those cuts with restricted stock grants.
The Tivity board in mid-April voted to trim the pay of CFO Adam Holland, Chief Legal and Administrative Officer Mary Flipse, health care division leader Steve Janicak and CAO Ryan Wagers (as well as then-interim CEO Bob Greczyn) as it sought to soften the impact from the spread of COVID-19. That decision — which initially ran through late August and now also covers newly hired CEO Richard Ashworth— is saving Franklin-based Tivity about $250,000 per month in cash.
The directors in April also eliminated their own board and committee retainers and have now extended that policy through Dec. 31. Doing so will save Tivity another roughly $250,000 in 2020.
As before, the Tivity execs and directors will instead of cash be granted restricted shares worth the pay they are forgoing. Those grants will be made in late August and “be equal as closely as reasonably possible to the amount of such reduction.” The grants will vest after one year.
Tivity’s leader in early May said the company had posted a net loss of $198 million on sales of $338 million. That number included a write-down of about $200 million of the value of its Nutrisystem division. The future of that business, acquired only last year, is under review.
Shares of the company (Ticker: TVTY) were up more than 2 percent to $11.08 Friday. They began the year around $20 and bottomed out near $2 in March.