Business Context and Reporting Period
Data Storage Corporation (DTST) filed a Form 8-K on April 10, 2023, reporting executive compensation adjustments. The company is incorporated in Nevada and trades on the Nasdaq Capital Market.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. It focuses exclusively on executive compensation arrangements.
Material Changes
The Board of Directors approved increased cash compensation and new equity awards for two key executives effective April 10, 2023:
- Harold J. Schwartz (Director and President)
- Thomas C. Kempster (Director and Executive Vice President)
These awards were granted pursuant to an authorized compensation increase previously disclosed on March 1, 2023, under the Company's 2021 Stock Incentive Plan.
Compensation Details and Outlook
Base Salary Increases
- 2023: $215,000 annually for each executive.
- 2024: Increased to $225,000 annually for each executive.
- 2025: Increased to $250,000 annually for each executive.
Equity Awards
Both executives received identical equity packages:
- Stock Options: 25,000 shares each. Exercise price is 110% of the closing stock price on the grant date. Vesting occurs in three equal annual installments over three years. Expiration date is April 10, 2033.
- Restricted Stock Units (RSUs): 25,000 shares each. Vesting occurs in three equal annual installments over three years.
Investor Verification Checklist
- Verify the closing stock price on April 10, 2023, to calculate the specific exercise price for the granted options.
- Review the March 1, 2023 disclosure to confirm the terms of the authorized compensation increase.
- Assess the impact of the increased salary and equity vesting on future operating expenses and diluted share count.
- Confirm the total outstanding equity awards for these executives to evaluate total potential dilution.