Change in Directors or Principal Officers, Other Events
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On January 7, 2016, the Compensation Committee of the Board of Directors (the "Board") of Cosi, Inc. (the "Company") recommended to the Board, and the Board approved, adjustments to the compensation of certain key executives, as described below.
In July 2015, the Compensation Committee engaged an independent compensation consultant (the "Consultant") to conduct an independent review of executive and senior leadership compensation levels and variable pay programs at the Company. In its review, the Consultant took into consideration various factors, including that the Company is in the midst of a significant turnaround.
The Company's objective is to compensate executive officers and other members of the senior leadership team at the 25th percentile of comparable positions at restaurant and hospitality companies of comparable size.
Based upon the results of the compensation review of the executive officers, certain elements of the compensation of certain key executives were found to be below the 25th percentile. To support the Company's compensation strategy and maintain parity among the executive officers, certain adjustments were approved by the Compensation Committee and the Board, effective January 1, 2016, as follows:
� R.J. Dourney, CEO & President - Increase base salary to $415,000 per year from $300,000 per year. This change will be documented in an amendment to Mr. Dourney's Employment Agreement dated March 17, 2015, which was previously disclosed.