Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

In its Form 8-K filed with the SEC on April 9, 2020 (the "April 2020 Form 8-K"), Hooker Furniture Corporation (the "Company") reported that on April 7, 2020 the Compensation Committee (the "Committee") of its Board of Directors (the "Board") determined it was in the best interests of the Company and its shareholders to temporarily reduce the base salary of each executive officer. The determination was made because of the adverse effects of the COVID-19 crisis and its related negative effect on demand for the Company's products. The reductions ranged from 15%-20% of base salary and were part of the Company's broader efforts to reduce operating expenses and conserve cash. Base salaries were reduced starting with the April 2020 monthly payroll and were to remain at the reduced levels until such time as the Committee determined it was appropriate for them to return to pre-reduction levels. This change was approved by the Committee in April 2020 and reported in the April 2020 Form 8-K.

The disruption brought on by the crisis has not been as severe as the Company originally forecasted and for which it had prepared. Subsequent to the end of the fiscal 2021 first quarter which ended on May 3, 2020, the Company's orders have trended at rates higher than a year ago and cash balances have increased by $31 million from quarter-end to around $80 million presently.

Due to these factors, on July 23, 2020, the Committee determined that it was in the best interests of the Company and its shareholders to restore to previous levels salaries of executive officers that were reduced in reaction to earlier uncertainties. Salaries of executive officers will be restored to previously approved levels as of August 1, 2020 and the reductions from previous months will not be reimbursed. Please see the April 2020 Form 8-K for the salary details for our executive officers.

At the same meeting, having taken a similar temporary reduction in compensation, the Board of Directors also restored board compensation under similar terms.

--------------------------------------------------------------------------------

© Edgar Online, source Glimpses