RALEIGH – Communication services provider Bandwidth Inc.’s CEO saw a 62.5 percent increase in total compensation in the company’s 2017 fiscal year due to a bonus increase, according to a Securities and Exchange Commission filing.
Bandwidth
David A. Morken’s total compensation for the year was $1.5 million, up from $931,000 in the company’s 2016 fiscal year. His bonus compensation was $750,000, an 86.6 percent increase from the bonus he received in 2016.
The increase resulted from an employment agreement made Jan. 1, 2015, entitling Morken to that bonus payment upon an initial public offering by the company. Bandwidth went public Nov. 14, 2017, fulfilling the agreement’s criteria.
His performance-based bonus declined 15.8 percent in the past fiscal year, to $378,750 in 2017 from $450,000 in 2016. This compensation is based on individual achievement of annual goals set by the company.
Morken’s base salary for 2017 was $375,000, seeing no change from his 2016 salary.
Jeffrey A. Hoffman, Bandwidth’s chief financial officer, received $634,288 in total compensation, a 15 percent increase from the previous fiscal year. This rise was primarily due to a 78.6 percent increase in Hoffman’s performance-based bonus, to $310,684 in 2017.
He also saw a 6.6 percent rise in base salary, to $309,067 in 2017 from $289,877 in 2016.
Effective Dec. 1, 2017, Hoffman’s base salary was increased to $364,800, according to the filing, which can be found online.
Bandwidth, which offers voice and messaging services to assist things like 911 access, reported net income of $5.9 million in its 2017 fiscal year, a decrease of 73.2 percent. Its revenue for the year rose 7.1 percent to $162.9 million.
Bandwidth’s annual meeting will be Thursday, May 17, at 9:30 a.m. Eastern time, at the Park Alumni Center, 2450 Alumni Drive in Raleigh.
The company’s shares closed at $31.72 near close Wednesday, down nearly 2.2 percent from the previous day.
This story is from the North Carolina Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism
