22nd Century Slashes Board Compensation

22nd Century Group today announced a reduction in board compensation expenses expected to save more than $1 million in annual cost for 2024. In addition to the reduced cash compensation structure, the board has also waived any cash compensation due to non-employee directors for the fourth quarter of 2023 and the first quarter of 2024 and voted to forgo any equity compensation grants for directors in 2024.

“We continue to build on our progress over the past two months as we rapidly turn 22nd Century into a lean operating tobacco business focused on efficiency and value in everything we do,” said 22nd Century Chairman and CEO Larry Firestone in a statement. “These latest changes not only reduce the cash and total compensation cost related to our board, they align the board with our operating philosophy as we seek to become a self-sustaining business through a combination of sales growth, margin improvement and cost reduction.”

Under the revised compensation structure, adopted with immediate effect, annual independent director compensation will decline from $75,000 to $20,000, audit chair compensation from $20,000 to $10,000, and compensation and nominating & governance chair compensation from $20,000 to $5,000. Compensation for independent directors serving on these committees will be reduced from $10,000 per year to $5,000 per year, and independent board chair compensation, which was previously $50,000 per year, will be replaced with a lead director fee of $20,000 annually. Non-independent members of the board do not receive additional cash compensation for their board service.