INTELLINETICS, INC. (OTCMKTS:INLX) 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
On April 6, 2020, the executive officers of Intellinetics, Inc. (the “Company”), including James F. DeSocio, President and Chief Executive Officer, Joseph D. Spain, Treasurer and Chief Financial Officer, and Matthew L. Chretien, Chief Strategy Officer, agreed to reduce their base salary by 20%, and such reduction was approved by the Compensation Committee of the Board of Directors, with retroactive effect to April 1, 2020. The Company is implementing these cost-saving measures in light of the temporary reduction in operating activities in the State of Michigan due to COVID-19, as announced in the press release issued by the Company on March 30, 2020, and in the Company’s Annual Report on 10-K, filed with the Securities and Exchange Commission on March 30, 2020. The base salary reductions will be in effect until further notice, as determined in the discretion of the Compensation Committee of the Board of Directors.
In addition, on April 6, 2020, the Compensation Committee also approved a base salary merit increase for Joseph D. Spain, with retroactive effect to April 1, 2020, increasing his annual base salary to $162,000 from $140,000, prior to the reduction by 20% as set forth above. Thus, the net effect of Mr. Spain’s base salary increase, plus the overall 20% decrease, is a decrease of 7.5% from Mr. Spain’s previous annual base salary.
In addition, the Company’s Board of Directors has also agreed to forego the cash portion of their director compensation for the second quarter of 2020.