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ZAGG Board Switches to All-Stock Compensation Program, Withdraws 2020 Outlook Amid Pandemic

6:46AM ET 4/16/2020 MT Newswires
ZAGG Inc (ZAGG) said Wednesday its board has shifted to an all-stock Director compensation program from a cash-and-stock compensation program, effective immediately, to preserve cash amid the COVID-19 pandemic.

The board's current cash compensation will be cut by 15% prior to the new program being implemented. CEO Chris Ahern will also take a 15% salary reduction, while the rest of the executive team and senior managers will take cuts of 10% and 5%, respectively.

The mobile lifestyle company has also withdrawn its full-year 2020 outlook amid current market uncertainties due to the pandemic. The company previously projected 2020 EPS of about $0.50 and flat net sales year over year.

About 20% of the company's US employees have been temporarily furloughed or laid off. The company also reduced its Europe and Asia-Pacific workforce, excluding China, by about 20%.

Other cost-cutting initiatives include deferring non-essential project spending and canceling or delaying purchase orders. The company has also amended its secured revolving credit facility to increase available borrowings by $19.8 million through 2021.

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