After the board revised financial goals because of the pandemic, executives earned bonuses for the second half of the year.
Digi International Inc.
Chief executive officer
Total compensation: $1,531,531 for the year ended Sept. 30.
Salary: $454,962
Non-equity incentive pay: $239,631
Other compensation: $7,273
Value realized on vesting shares: $829,665
New stock options: 133,000
Median employee pay: $101,720
CEO pay ratio: 35 to 1
Total shareholder return: 14.8 percent
Note: In March, when the COVID-19 pandemic led to government mandated economic shutdowns many companies moved quickly to conserve cash, including cutting pay for executives and employees. Those companies then had to decide what to do with annual cash incentive targets set before the coronavirus pandemic and were now out of reach.
Digi executives took 10% salary cuts in April. In May, Digi's board of directors decided to replace the company's annual incentive plan when members decided "it was clear that the operational and financial impacts of the COVID-19 pandemic would preclude that plan from providing any meaningful incentive."
Executives did not earn bonuses in the first half of the year based on the goals set prior to the pandemic, but did for the second half after the company achieved revised revenue and EBITDA.
Executives still earned smaller bonuses than the previous year. Konezny's annual incentive plan payment of $239,631 was down from $465,000 in the previous year.
Also, in February, prior to any other compensation moves, the board decided to grant Konezny a special resticted stock unit award of 100,000 shares in recognition of his achievements since December 2014 when he was named CEO.
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