By GEERT DELOMBAERDE
Tivity Health CEO Donato Tramuto last week signed a new, higher-paying contract with the fitness programs marketer, which early this month completed its $1.3 billion acquisition of weight management company Nutrisystem.
Tramuto, who has led Tivity — the former Healthways — since the fall of 2015, is now being paid a base salary of $950,000, which is $100,000 more than his first contract with the Franklin-based company. His new deal with Tivity initially runs through the end of next year and will automatically renew for a year at a time unless either side chooses not to renew.
The 62-year-old Tramuto also will be eligible for a cash bonus that is targeted to be equal to his salary but also could grow to double that figure. Those numbers are in line with his previous deal, which also included a number of one-time inducements.
Tramuto also has been granted $800,000 worth of restricted stock that will vest in three equal parts between now and March 2022 as well as up to $2.4 million worth of restricted shares that are linked to certain performance measures.
Those numbers are a good bit smaller than the corresponding awards he received three and a half years ago. Then, Tramuto was given nearly $3 million worth of restricted stock as well as another block of stock linked to the total return of Tivity’s shares. The latter has paid off handsomely for Tramuto: The stock climbed from about $13.25 to more than $40 in the three years after Tramuto took over — triggering a big payout last fall — but has since slumped in large part because investors haven’t taken to the Nutrisystem deal, which was announced shortly after Tramuto’s three-year anniversary with the company.
Shares of Tivity (Ticker: TVTY) closed Friday at $17.07 down slightly on the day but up from the 52-week low they hit during the session.