Ezenia’s CEO takes big pay cut
NASHUA – Ezenia’s chief executive took a pay cut in 2010, the Nashua software firm disclosed Tuesday.
Khoa Nguyen collected a total compensation package of $548,304, a decline of 29 percent from the $770,304 he was paid in 2009, according to documents filed with the U.S. Securities and Exchange Commission.
Nguyen’s base salary is $285,000. The rest was paid in stock options and other forms of compensation. Nguyen is one of the company’s largest shareholders, owning nearly 17 percent of the stock.
Chief financial officer Thomas McCann earned $145,856 in 2010, his first full year on the job.
Meanwhile, the vice chairman of the cash-strapped company’s board of directors has resigned. Peter Janke made the announcement April 25, less than a month after he was laid off as Ezenia’s president and chief operating officer in an effort to cut costs.
“Since I cannot, in good conscience, support the decisions and initiative of the current board majority, kindly register my resignation from my positions as vice chairman of the board of Ezenia and as a director of the company,” Janke said in his resignation letter.
Reached later, Janke declined to elaborate.
Janke, a former Raytheon executive and vice president of Seneca Group LLC, a consulting and revitalization consulting firm, joined the firm as a board member in June 2010 and took over Nguyen’s duties as president in September, with a base salary of $240,000 and some 300,000 stock options. He also signed a severance agreement entitling him to receive a salary for six months following termination “without cause.”
Ezenia lost $620,000 last quarter and $2.7 million last year. In the past four years, the company posted net losses of $13.9 million.
The company laid off half its work force in March, and three board members quit suddenly. In February, it was forced to add a board member placed by creditors because the company did not meet its targets.
Ezenia’s products integrate voice, video and data to allow remote groups to communicate in real time. The company, founded in 1991, sells primarily to government and commercial groups.
The company has blamed its decline in business largely on the Defense Department, which is offering a competing product for free to defense contractors.
New Hampshire Business Review’s Bob Sanders contributed to this report. Ashley Smith can be reached at 594-6446 or firstname.lastname@example.org.