MOCKSVILLE - 22nd Century (NASDAQ:XXII) Group, Inc. (NASDAQ: XXII), a biotechnology company specializing in plant-based health and wellness innovations, has announced significant reductions in board compensation as part of its broader cost-saving measures. The company expects these changes to save over $1 million annually starting in 2024.
The streamlined compensation plan, effective immediately, includes a reduction in annual pay for independent directors from $75,000 to $20,000. Audit Chair compensation will drop from $20,000 to $10,000, while Compensation and Nominating & Governance Chair compensation will decrease from $20,000 to $5,000. Additionally, compensation for independent directors serving on these committees has been halved from $10,000 to $5,000 per year.
In a move to further align with the company's lean operating commitment, non-employee directors have waived their cash compensation for the final quarter of 2023 and the first quarter of 2024. The board has also decided to forgo any equity compensation grants for directors in 2024.
Larry Firestone, Chairman and Chief Executive Officer of 22nd Century, stated that these cost reductions are part of the company's ongoing efforts to transform into a more efficient and value-driven business. The focus is on achieving self-sustainability through sales growth, margin improvement, and cost reduction.
The company, which holds the first and only FDA Modified Risk Tobacco Product authorization for a combustible cigarette, uses advanced technologies to develop proprietary reduced nicotine content tobacco plants and cigarettes. These products play a central role in the FDA's plan to combat smoking-related health issues.
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