EZCORP, Inc. (NASDAQ:EZPW) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02 Departure of Directors or Certain Officers; Election of
Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers
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(b)
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Mark Ashby, Chief Financial Officer (principal financial
officer), will leave EZCORP, effective May 8, 2017. This move is part of the companys continuing efforts to align its corporate organizational and expense structure with its more simplified business model. Mr. Ashbys departure is not the result of any issue or concern with the companys accounting, financial reporting or internal control over financial reporting, nor the result of Mr. Ashbys contributions or performance while at the company. |
Ashby have entered into a Separation Agreement and Release (the
Separation Agreement), a copy of which is attached as Exhibit
99.1. to the Separation Agreement, Mr. Ashby will receive the
following severance benefits:
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A severance payment equal to one years base salary
($700,000), consistent with the offer letter that the company and Mr. Ashby agreed to at the commencement of his employment; |
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Accelerated vesting of 4,667 shares of restricted stock
that were otherwise scheduled to vest on September 30, 2017; |
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Retention of 63,029 (out of 113,452) restricted stock units
that are scheduled to vest on September 30, 2018, with the vesting of the retained units remaining subject to the attainment of the applicable performance goals at the vesting date; |
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Accelerated vesting of Supplemental Executive Retirement
Plan (SERP) account balance (approximately $140,000); and |
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Payment or reimbursement of the costs of moving Mr. Ashby
and his family back to Australia. |
of claims against the company and affirmed certain noncompetition
and nonsolicitation obligations to which he is subject for a
period of one year following his termination of employment. The
Separation Agreement, which was approved by the Compensation
Committee of the companys board of directors, was executed by the
company and Mr. Ashby on May 2, 2017.
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(c)
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Daniel M. Chism has been appointed Chief Financial Officer
(principal financial officer), effective May 9, 2017. Mr. Chism, age 49, has over 20 years of accounting, finance and business experience in the pawn industry, with 12 of those years at EZCORP. He served as EZCORPs Controller from August 1999 to October 2009, when he was promoted to Vice President, Finance and Chief Accounting Officer. He served in that position for two years until he left the company in October 2011. After leaving the company, Mr. Chism co-founded, and has been serving as Executive Vice President and Chief Financial Officer of, Cash Solutions Centers, LLC, a privately-held owner and operator of pawnshops and financial services stores. From May 2015 to July 2016, Mr. Chism also served as Executive Vice President – Chief Financial Officer of Gatsby Investments, LLC, a privately-held holding company, as well as Chief Financial Officer to two consumer products companies in the Gatsby Investments portfolio. Mr. Chism began his professional career at Ernst Young, where he served as Audit Manager on EZCORPs account. He holds a Bachelor of Business Administration degree in Accounting and a Master in Professional Accounting degree from the University of Texas at Austin, and is a Certified Public Accountant and a Chartered Global Management Accountant. |
annual salary of $450,000, a target short-term incentive bonus of
80% of base salary, and (commencing in fiscal 2018) an annual
long-term incentive award with a grant date value of 60% of base
salary. Mr. Chism will also be eligible for other benefits
typically provided to the companys executive officers. These
benefits include a severance plan that provides for a severance
payment of one years base salary if the company terminates Mr.
Chisms employment without cause.
has an interest in two existing pawnshops. The company and Mr.
Chism are currently discussing the potential acquisition of
assets related to those pawnshops. Any such transaction will be
subject to review and approval by the Audit Committee of the
companys board of directors to the companys Policy for Review and
Evaluation of Related Party Transactions.
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(d)
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Exhibits.
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99.1
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Separation Agreement, dated May 2, 2017, between the
Company and Mark Ashby |
About EZCORP, Inc. (NASDAQ:EZPW)
EZCORP, Inc. provides pawn loans in the United States and Mexico, and consumer loans in Mexico. The Company operates through four segments: U.S. Pawn, which includes its EZPAWN, value pawn and jewelry, and other branded pawn operations in the United States; Mexico Pawn, which includes its Empeno Facil pawn operations and cash converters buy/sell store operations in Mexico; Grupo Finmart, which includes its Crediamigo and Adex payroll withholding loan operations in Mexico, and Other International, which includes its CASHMAX financial services operations in Canada and its equity interest in Cash Converters International. It offers pawn loans, which are non-recourse loans, collateralized by tangible property, and it sells merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers at its pawn stores. EZCORP, Inc. (NASDAQ:EZPW) Recent Trading Information
EZCORP, Inc. (NASDAQ:EZPW) closed its last trading session down -0.30 at 8.65 with 396,462 shares trading hands.
