PSYCHEMEDICS CORPORATION (NASDAQ:PMD) 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(e)
1.On January 24, 2019, the Compensation Committee of the Board of Directors of Psychemedics Corporation (the “Company”) approved the terms of cash performance bonus arrangements with each of its executive officers and certain other employees for 2019 (the “cash bonus arrangements”). Bonus payments under the cash bonus arrangements are calculated and paid as follows:
Each participant has the opportunity to earn as bonus compensation up to an aggregate of an additional 25% of his or her base salary at the end of 2019 based on achievement of Company and individual goals. Each participant’s target percentages consist of the following:
| a. | Up to 7.5% of base salary based on the Company’s achievement of pre-determined domestic revenue goals for 2019; plus |
| b. | Up to 7.5% of base salary based on the Company’s achievement of pre-determined earnings per share goals for 2019; plus |
| c. | Up to 10% of base salary based on the employee’s achievement of pre-determined individual objectives for 2019. |
The foregoing targets (a), (b) and (c) are cumulative and achievement of any such target is not dependent upon achievement of any other listed target.
The Compensation Committee reserves the right to withdraw, amend, add to and terminate the cash bonus arrangements, or any portion of them, in its discretion at any time, including, but not limited to, changing or eliminating the threshold amounts giving rise to the payment of target percentages, determining the calculation of such threshold amounts, and adjusting threshold amounts to take into account special non-recurring items, in determining financial and individual performance.
Following the end of fiscal year 2019, the Chief Executive Officer will review and assess the performance of each of the other participants with respect to achievement of his or her individual goals and provide his recommendations thereon to the Compensation Committee. In addition, the Compensation Committee will review and assess the Chief Executive Officer’s performance with respect to achievement of his individual goals. The Compensation Committee will then determine the level of payout of the portion of the Chief Executive Officer’s bonus arrangement with respect to individual and Company goals, and each of the other participants, based on the Committee’s review and assessment of the performance of each individual toward his or her individual goals and Company goals.
About PSYCHEMEDICS CORPORATION (NASDAQ:PMD)
Psychemedics Corporation (Psychemedics) provides hair testing for drugs of abuse, utilizing a hair analysis method involving digestion of hair, enzyme immunoassay (EIA) technology and confirmation by mass spectrometry to analyze human hair to detect abused substances. The Company operates in drug testing services segment. The Company is in the business of performing drug testing and reporting the results thereof. The Company’s drug testing services include training for collection of samples and storage of positive samples for its customers for an agreed-upon fee per unit tested of samples. The Company’s primary application of its technology is as a testing service that analyzes hair samples for the presence of certain drugs of abuse. The Company’s tests provide information that indicates the approximate amount of drug ingested, as well as historical data, which shows a pattern of individual drug use over a longer period of time.