"Change in Control"Did anyone pay any attention to the financial statements released yesterday, page 27, last paragraph under header 15. Commitments and Contingencies"
Quote: "The three contracts currently require a total payment of up to $1,333,000 (December 31, 2021 – $1,649,000) be made upon the occurrence of certain events such as termination and change in control."
Worth noting one of the three is the CFO, guessing the other is Suresh, the third, well I don't know who that would be. The term change in control was interesting to me.
First google search result: "A change in control agreement provides incentives to an executive to continue his or her employment. Such an agreement recognizes the distraction that an acquisition by another company or other change in control poses to an executive, and seeks to motivate the executive not to seek alternative employment opportunities."
Worth noting the $1.333M is significantly less than at any time during 2021.
Termination agreements are different than change of control agreements, as stated, Tralisa took home $754k on November 8th, 2021, the CFO transition NR came out the very next day. With the contingency value declining, perhaps there was thought the company might get an offer after Kawa. Now, with less risk comes less contingency?
Change in control agreements are contracts that outline pay and benefits an executive will receive in the event of a change in company ownership.