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Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
At its December 17, 2014 meeting, the Compensation Committee of the Board of Directors of Natus Medical Incorporated (the “Company”) approved the base salaries and bonus program for the Company’s named executive officers (NEO) for the period beginning January 1, 2015 and ending December 31, 2015. In addition, the Compensation Committee elected to change two of the target bonus goals. The first changed the minimum threshold target from consolidated pre-tax income of 80% of Plan to Non-GAAP EPS of 85% of Plan. The second changed the consolidated pre-tax earnings target to Non-GAAP EPS.
The Compensation Committee approved the base salary amounts set forth in the table below:
Sr. Vice President Finance & Chief Financial Officer
$
410,000
Austin F. Noll, III
Vice President and General Manager, Neurology
$
320,000
Kenneth M. Traverso
Vice President and General Manager, Newborn Care
$
310,000
D. Christopher Chung, M.D.
Vice President Medical Affairs, Quality and Regulatory
$
277,000
The Compensation Committee also approved the cash bonus plan for executive officers of the Company for 2015. Cash bonuses, if paid, may range from 50% to a maximum of 200% of the target amount.
The target bonus as a percentage of 2015 base salary is 100% for Mr. Hawkins, 65% for Mr. Kennedy, 50% for each of Messrs. Noll and Traverso, and 40% for Dr. Chung, which amounts were unchanged from the prior year.
The target bonus is based on achievement of the following goals and weighting:
NEO
Minimum
Threshold
Consolidated
Revenue
Non-GAAP EPS
Specific
Strategic
Objectives
Business
Unit
Revenue
Business
Unit
Profitability
Mr. Hawkins
Mr. Kennedy
Achieve at least 85% of Non-
GAAP EPS per
the 2015 Plan
20%
80%
--
--
--
Mr. Noll
Mr. Traverso
15%
15%
20%
25%
25%
Dr. Chung
20%
60%
20%
--
--
The payment of any bonus remains subject to the discretion of the Compensation Committee and in determining the attainment of operational financial metrics the Committee expects to refer to the Company’s reported operating results as adjusted to eliminate the effects of any subsequent event not taken into account in establishing the 2015 Plan.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.