Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On July 25, 2022, the Board of Directors (the "Board") of Ontrak, Inc. (the
"Company") appointed Judith Feld, MD, age 68, as Chief Medical Officer ("CMO")
of the Company, effective July 26, 2022, following the previously reported
resignation of Dr. Robert Accordino. Dr. Feld brings over 30 years of experience
to the role and is a Distinguished Life Fellow of the American Psychiatric
Association, from whom she received the APA's Bruno Lima Award for Disaster
Relief for her volunteer work in New Orleans with first responders following
Hurricane Katrina. She also has been awarded significant grant funding to
implement integrated care models in New York state. Dr. Feld holds an MD from
the University of Pennsylvania, a Master of Public Health from SUNY Buffalo, and
Master of Medical Management from USC Marshall School of Business.
As previously reported, on June 27, 2022, the Board appointed Brandon H. LaVerne
as Co-President and Chief Operating Officer of the Company, Mary Louise Osborne
as Co-President and Chief Commercial Officer, and James J. Park as Chief
Financial Officer, each effective immediately.
The Company has entered into an employment agreement with each of Mr. LaVerne,
Ms. Osborne, Mr. Park and Dr. Feld, which sets forth the respective duties of
each officers' roles as executive officers of the Company and the terms of each
officers' compensation. Each employment agreement is for a term of three (3)
years commencing on June 27, 2022 for Mr. Laverne, Ms. Osborne and Mr. Park, and
on July 26, 2022 for Dr. Feld, with an option to renew for another three (3)
years. As compensation for each officers' services, the following shall be
provided to each of the appointed officers, including expense reimbursement and
other benefits:
•Mr. LaVerne - base salary equal to $450,000 annually in equal bi-weekly
installments, less applicable taxes, and discretionary bonus which will be
targeted at 100% of Mr. LaVerne's annual base salary, which will be based on Mr.
LaVerne achieving individual goals and milestones, and the overall performance
and financial condition of the Company;
•Ms. Osborne - base salary equal to $450,000 annually in equal bi-weekly
installments, less applicable taxes, and discretionary bonus which will be
targeted at 100% of Ms. Osborne's annual base salary, which will allow
overachievement to a maximum of 200% of annual base salary, which will be based
on Ms. Osborne achieving individual goals and milestones, and the overall
performance and financial condition of the Company;
•Mr. Park - base salary equal to $350,000 annually in equal bi-weekly
installments, less applicable taxes, and discretionary bonus which will be
targeted at 50% of Mr. Park's annual base salary, which will be based on Mr.
Park achieving individual goals and milestones, and the overall performance and
financial condition of the Company; and
•Dr. Feld - base salary equal to $350,000 annually in equal bi-weekly
installments, less applicable taxes, discretionary bonus which will be targeted
at 50% of Dr. Feld's annual base salary, which will be based on Dr. Feld
achieving individual goals and milestones, and the overall performance and
financial condition of the Company. In addition, on July 29, 2022, the
Compensation Committee approved stock options to purchase up to 100,000 shares
of the Company's common stock with a per share exercise price equal to the
closing price of a share on the date of grant and subject to all of the
provisions of the Company's 2017 Stock Incentive Plan (the "Plan"), vesting over
four years from the date of grant with one-fourth (1/4) of the option vesting in
one year, and the remainder of the option vesting in equal quarterly
installments thereafter according to the terms of the Plan and applicable award
agreement.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
99.1 Press Release, dated July 26 , 202 2 .
104 Cover Page Interactive Data File (formatted as Inline XBRL).
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