Icoreconnect Inc. (ICCT), a provider of cloud-based software and technology services for healthcare industries, has implemented several incentive-based plans and awards to compensate its top executives. The company aims to align executive compensation with stockholder interests and achieve a balance between long- and short-term incentives in cash and non-cash components.
According to a recent financial report, Icoreconnect’s total executive compensation comprises base salary, cash bonus, and stock incentives. The compensation program is structured to create a significant percentage of variable compensation for executives, subject to adjustments based on specific achievements and targets. Long-term incentives play a vital role in aligning performance with stockholder interests, although they have historically been a smaller component of overall compensation. The Compensation Committee awards long-term incentive compensation in the form of equity awards to Named Executive Officers (NEOs) entering new employment agreements.
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Compensation Committee Roles and Responsibilities
Icoreconnect’s Compensation Committee has the authority to review and approve general compensation principles and practices for executives and senior employees. It evaluates the Chief Executive Officer’s (CEO) performance based on corporate goals and objectives and approves their annual compensation. CEO’s evaluation and recommendations of other executive officers and their direct reports are used by the Compensation Committee to approve their compensations. The committee also reviews the evaluation process and the compensation structure for senior management members.
Executive Compensation Elements
The compensation elements at Icoreconnect are structured into salary, equity compensation, and employment agreements for NEOs. Base salaries for Robert McDermott, Dave Fidanza, Muralidar Chakravarthi, Jeffrey Stellinga, and Archit Shah are set forth in their employment agreements. These agreements are determined by the CEO in consultation with the Compensation Committee, taking into consideration roles, responsibilities, industry standards, and comparable positions.
Equity compensation serves as an employee incentive and promotes alignment between employees and stockholders. Icoreconnect’s Compensation Committee grants stock options and restricted stock to NEOs upon entering their respective employment agreements. In addition, the committee typically grants equity compensation once a year, based on individual and company performance assessment and the dilutive effect of equity awards.
Employment Agreements and Compensation Details
Icoreconnect has signed employment agreements with various directors, outlining their respective base salaries, incentive bonus compensation plans, and stock option awards. For instance, CEO Robert McDermott entered into a three-year employment agreement with an annual base salary of $295,000, which increases to $317,500 and $348,000 per annum by December 16, 2022, and December 31, 2023, respectively. McDermott is also eligible for an incentive bonus of up to 30% of his base salary and was awarded stock options to purchase 18,000,000 shares of the company’s Common Stock.
Similar agreements are in place for other NEOs, such as Dave Fidanza, Muralidar Chakravarthi, Jeffrey Stellinga, and Archit Shah. Each agreement outlines the specifics of base salary adjustments, incentive bonuses, stock option awards, and conditions for termination and compensation continuation.
Retirement Benefits and Compensation Provisions
Icoreconnect does not currently offer pension, retirement, or other similar benefits for its directors and executive officers, but has no plans in place to compensate executives in the event of termination of employment caused by resignation, retirement, or change of control. The company also has no provisions in place that could potentially result in a change of control or affect future management decisions.
With such incentive-based plans, awards, and employment agreements in place, Icoreconnect aims to attract, reward, and retain top talent in its industry. By aligning executive compensation with stockholder interests, the company demonstrates a commitment to creating long-term value for all stakeholders involved.
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