Offer Letter, dated May 3, 2023 by and between CPI Card Group Inc. and Jeffrey Hochstadt
Exhibit 10.1
10368 W. Centennial Road|Littleton, CO 80127|Tel: (303) 973-9311|Fax: (303) 973-8420
May 2, 2023
Jeffrey Hochstadt Greenwood
Village, Colorado
Dear Jeff:
Thank you for your time over the past few weeks to get to know more about CPI and meeting with members of our leadership team. Through these discussions, you have impressed us with your accomplishments, expertise and your personal attributes. We believe you would be an excellent addition to the leadership team at CPI. As a result of our recent discussions, we are pleased to present you with the following offer:
Title: | Chief Financial Officer |
Hiring Manager: | Scott Scheirman, President & CEO |
Salary: | Your base salary paid bi-weekly in this position will be $15,384. |
This amount annualized equals $400,000 per year. | |
Tentative Start Date: | May 4, 2023, and assuming CFO role on May 15, 2023 |
As an employee of CPI, you will be eligible for coverage under the Company’s health and welfare benefits package effective the first of the month following thirty days of service. Some benefits from CPI will be available to you at no cost, while others will require a contribution on your part. Briefly, these benefits consist of the following:
· | Medical coverage which includes a prescription drug program |
· | Dental and Vision coverage |
· | Company-paid Short- and Long-Term Disability Insurance |
· | Flexible Spending Accounts |
· | Life and Accidental Death and Dismemberment Insurance |
· | 401(k) plan with a company match of 100% of the first 3% of employee deferral and 50% on the 4th and 5th percent of employee deferral. (401(k) eligibility is the 1st of the quarter following 90 days of service.) |
· | 4 weeks of vacation (accrued per pay period) |
· | 6 scheduled holidays |
· | 3 floating holidays (pro-rated based on hire date) |
· | 40 hours of paid personal time (pro-rated based on hire date) |
You will be eligible for CPI’s Short-Term Incentive Plan (STIP). Your total target opportunity is $325,000 for 2023, or approximately 81% of your base pay. The STIP is paid quarterly and is based on Company and individual performance results. Your manager will provide additional information on the STIP after your Start Date. For 2023, this amount will be prorated for the portion of the year you are employed at CPI.
You will also receive a long-term incentive award in the form of a combination of restricted stock units and stock options, with the value of the award split 75%/25% between these equity vehicles, under the Company’s Omnibus Incentive Plan. Your annual target for 2023 will be $250,000, and you will
10368 W. Centennial Road|Littleton, CO 80127|Tel: (303) 973-9311|Fax: (303) 973-8420
receive a new hire grant of $250,000 on May 15, 2023. You will also receive grants in 2023, granted in earnings release months (May, August and November), which will be a prorated portion of your $250,000 annual target, each at one-quarter of your annual target.
Also, note that our intent over time is to rebalance the weighting between our STIP and LTIP plans, with a heavier balance moving to LTIP/equity. We anticipate that the weighting between STIP and LTIP value for your role will be approximately 40% to STIP and 60% to LTIP. The specific timing of achieving this mix will be determined by the Compensation Committee of the Board of Directors.
This offer of employment is conditioned on the following:
· | Satisfactory completion of the application, and your ability to furnish CPI with the identification required to demonstrate that you are legally permitted to work in the United States, and you signing the CPI Card Group Confidentiality, Trade Secret Protection, Unfair Competition, Non-Solicitation, and Invention Assignment Agreement for Executives, and acknowledgment of the attached Drug and Substance Abuse Policy. |
· | Satisfactory completion of a customary background investigation, drug test and completion of the reference process is also required. |
Your relationship with CPI is one in which employment is “at will.” With this, CPI reserves the right to set and modify your terms and conditions of employment up to and including the termination of your employment. Conversely, you have the right to terminate your employment relationship with CPI at any time.
We would like to confirm your decision regarding this offer on or after Wednesday, May 3, 2023, but no later than Friday, May 5, 2023. If you have any questions, do not hesitate to contact me. We at CPI are looking forward to you joining the organization!
Sincerely,
/s/ Sonya Vollmer
Sonya Vollmer
Chief Human Resources Officer
Accepted:
Signed: /s/ Jeffrey Hochstadt | Date: May 3, 2023 |
