RigNet, Inc. (NASDAQ:RNET) 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
In response to the impacts of COVID-19 on the business of RigNet, Inc. (the “Company”), our Chief Executive Officer has elected to reduce his 2020 base salary by 20% effective May 1, 2020. Our other named executive officers (as defined in the proxy statement for our 2020 annual meeting of stockholders, filed with the Securities and Exchange Commission on April 8, 2020) have elected to reduce their 2020 base salaries by 15 % effective May 1, 2020. In addition, our Board of Directors has elected to take a 35% reduction in cash retainer fees for the first quarter of 2020. On April 17, 2020, the Compensation Committee of our Board of Directors approved these changes in named executive officer compensation.
Item 7.01 Regulation FD Update
Effective May 1, 2020, in addition to base salary reductions of our Chief Executive Officer and other named executive officer and the reduction to the Board of Directors cash retainer fees described under Item 5.02, we have reduced base pay for certain other employees by graduated amounts between 10% and 15%.
The information disclosed in this Item 7.01 is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act except as expressly set forth by specific reference in such filing.
Safe Harbor Statement
Statements contained in this Current Report on Form 8-K that state expectations or predictions about the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act and the Exchange Act. Examples of these statements include, without limitation, statements related to pay and retainer reductions. The Company’s actual results could differ materially from those projected in such forward-looking statements. Factors that could affect those results include “Risk Factors” and the other factors appearing in the documents that the Company has filed with the Securities and Exchange Commission. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Readers of this Current Report on Form 8-K should consider these factors in evaluating, and are cautioned not to place undue reliance on, the forward-looking statements contained therein. The Company assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
About RigNet, Inc. (NASDAQ:RNET)
RigNet, Inc. (RigNet) is a provider of digital technology solutions to the oil and gas industry. The Company provides managed remote communications, managed services and collaborative applications, focusing on offshore and onshore drilling rigs, energy production facilities, and energy maritime. The Company operates through three segments: Eastern Hemisphere, Western Hemisphere and RigNet Systems Integration and Automation. The Company’s Eastern Hemisphere segment provides remote communications services for customers and rig sites located on the eastern side of the Atlantic Ocean. The Company’s Western Hemisphere segment provides remote communications services for onshore and offshore customers and rig sites located on the western side of the Atlantic Ocean. The Company’s RigNet Systems Integration and Automation segment designs, assembles, installs and commissions solutions for customer telecommunications systems.
