CORVEL CORPORATION (NASDAQ:CRVL) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02.
| Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
On December21, 2017, Richard Schweppe announced his decision to retire as Chief Financial Officer of CorVel Corporation (the “Company”) to be effective on January1, 2018. Mr.Schweppe will continue providing service as a consultant to the Company for a transition period.
On December22, 2017, the Company announced the appointment of Ken Cragun as Chief Financial Officer of the Company to be effective on January1, 2018.
Mr.Cragun, age 57, is a Partner with Hardesty, LLC (“Hardesty”), a national executive services firm. He has been a Partner with Hardesty since 2016. Mr.Cragun intends to remain a Hardesty Partner while he serves as Chief Financial Officer of the Company.
Mr.Cragun’s prior experience includes serving from 2009 to 2017 as Chief Financial Officer of Local Corporation, a technology and advertising company; from 2006 to 2009 as Chief Financial Officer of Modtech Holdings, Inc., a modular building manufacturer; from 2003 to 2006 as Senior Vice President of Finance and Principal Accounting Officer for MIVA, Inc., an online performance marketing network; from 2002 to 2003 as Chief Financial Officer of ImproveNet, Inc., an online contractor matching service company; from 2000 to 2002 as Chief Financial Officer of NetCharge.com Inc., an online invoice and payment service company; and from 1994 to 2000 as Corporate Controller of C-Cube Microsystems Inc., a semiconductor manufacturing company.
Earlier in his career, Mr.Cragun served as Audit Manager at Deloitte. Mr.Cragun earned a Bachelor of Science degree in Accounting from Colorado State University – Pueblo and an Associate of Applied Science degree in Business Management from Brigham Young University – Idaho.
In connection with Mr.Cragun’s appointment as Chief Financial Officer, on January1, 2018, the Company entered into a Services Agreement with Hardesty (the “Services Agreement”). to the Services Agreement, the Company agreed to engage Hardesty to provide a Chief Financial Officer, and Hardesty agreed that Mr.Cragun will serve as the Company’s Chief Financial Officer for an expected minimum term of 90 days. The Services Agreement may be terminated by either party upon 30days advance written notice. The Company will pay Hardesty for the services provided, at rates of up to $36,500 per month. Mr.Cragun may be paid for normal time off including holidays in accordance with the Company’s policy for executives at such level. The Company will reimburse Mr.Cragun for travel and out-of-pocket expenses incurred in connection with the Services Agreement. If the Company decides to hire Mr.Cragun as an employee at any time during or within 12months after the term of the Services Agreement, the Company shall pay Hardesty a placement fee equal to 25% of Mr.Cragun’s annual base salary and bonus compensation; provided, however, that if the Company uses Mr.Cragun for more than 3 months, the placement fee will be discounted to 22.5% and if more than 6 months, the placement fee will be discounted to 20%.
There are no other arrangements or understandings between Mr.Cragun and any other persons to which he was selected as an officer. In addition, there are no family relationships between Mr.Cragun and any other director or executive officer of the Company.
About CORVEL CORPORATION (NASDAQ:CRVL)
CorVel Corporation (Corvel) is a provider of workers’ compensation solutions for employers, third party administrators, insurance companies and government agencies. The Company offers its services as a bundled solution, which includes claims management, as a standalone service, or as add-on services to existing customers. The Company offers its services as a bundled solution, which includes claims management, as a standalone service, or as add-on services to existing customers. The Company’s network solutions include bill review, preferred provider organization (PPO) management, professional review, provider reimbursement, pharmacy services, directed care services, medicare solutions and clearinghouse services. The Company’s patient management services include claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, life care planning, disability management, liability claims management and auto claims management.
