TranSwitch Corp. signed two senior officers to employment contracts that could pay each as much as $350,000 in salary and bonus if they stay aboard the struggling Shelton telecomm technology maker, a regulatory filing shows.
Amir Bar-Niv, senior vice president, and Theodore Chung, vice president business development and worldwide sales, each received contracts that remain open unless either is fired or quits, according to the company's 8-K filing with the Securities and Exchange Commission.
Each gets $250,000 a year in base pay, plus is eligible to collect an annual bonus of as much as 40 percent of base pay, or $100,000 each, the filing states.
In addition, as officers, Bar-Niv and Chung are eligible for TranSwitch's long-term incentive plans, it said.
The contract also contains the usual contingencies in the event the company undergoes a change in control.
TranSwitch, which lost money in the first quarter, recently sold $3 million of its stock to raise capital to buy time until its latest smartphone and tablet technologies gain traction in the marketplace.