The top five officers of Tivity Health are forgoing a quarter of their base salary for the next four months, a move that will save the fitness and nutrition programs company about $1 million as it looks to ride out the effects of COVID-19.
Taking the cuts are interim CEO Bob Greczyn Jr., CFO Adam Holland, Chief Legal and Administrative Officer Mary Flipse, Division President Steve Janicak and Chief Accounting Officer Ryan Wagers. Greczyn, a board member since 2015 who took over leadership of the C-suite in February when former boss Donato Tramuto resigned, is being cut $110,000 per month while Holland, Flipse and Janicak were given small raises in February that took their salaries to between $412,000 and $464,000.
In conjunction with the execs’ salary cuts, Tivity’s directors being paid cash retainers and committee retainers agreed to also forgo those payments for four payments. Based on 2019 numbers and accounting for the fact that Greczyn is not being paid as a board member while he’s interim CEO, that move looks to be worth a savings of about $230,000.
In trimming the salaries of its leaders, Tivity joins a slew of other public companies locally and nationally looking to preserve cash during the COVID-19 crunch. Where the Franklin-based company differs from many, however, is that its directors have approved restricted stock unit grants to themselves and to C-suite members, which will offset those cash reductions. Those restricted units will be issued at Tivity’s market price following the company’s first-quarter earnings and vest in full a year later.
Tivity shares (Ticker: TVTY) ended last week on a relatively positive note, climbing 8 percent to $6.74. They have, however, lost two-thirds of their value in 2020, with much of that drop coming in February, when the company said it was changing CEOs and writing down the value of its Nutrisystem acquisition.