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Item 5.02
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Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
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On April 7, 2020, Syneos Health, Inc. (the “Company”) announced that it had initiated several proactive cost management strategies in response to the COVID-19 pandemic, including organizational and operating model efficiencies, hiring restrictions, reductions in third-party costs, certain compensation adjustments, and other initiatives. In addition, the Company stated that it had implemented proactive cash conservation initiatives, including delaying some capital expenditures and locking in lower interest rates on certain variable rate debt.
Since April 7, 2020, the Company has implemented additional cost management strategies, including offering voluntary furloughs, suspending the Company match on U.S. employee 401(k) contributions, and delaying merit and promotion processes.
As part of these efforts, on April 18, 2020, the Compensation and Management Development Committee of the Board of Directors of the Company approved entering into letter agreements (the “Letter Agreements”) with each of the Company’s named executive officers: Alistair Macdonald, Chief Executive Officer; Jason Meggs, Chief Financial Officer; Michelle Keefe, President, Commercial Solutions; Paul Colvin, President, Clinical Solutions; and Jonathan Olefson, General Counsel and Corporate Secretary (each, an “NEO”). Pursuant to the Letter Agreements, each NEO has agreed to a voluntary reduction in his or her base salary from May 1, 2020 through September 30, 2020 as set forth in the following table:
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Named Executive Officer
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Original Base Salary
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Temporary Base Salary
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Percentage Reduction
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Alistair Macdonald, Chief Executive Officer
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$1,060,000
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$742,000
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-30%
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Jason Meggs, Chief Financial Officer
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$600,000
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$480,000
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-20%
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Michelle Keefe, President Commercial Solutions
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$567,000
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$460,000
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-19%
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Paul Colvin, President Clinical Solutions
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$567,000
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$460,000
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-19%
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Jonathan Olefson, General Counsel and Corporate Secretary
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$465,000
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$399,000
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-14%
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The foregoing summary of the Letter Agreements is qualified in its entirety by reference to the full text of the Letter Agreements, which are filed as Exhibits 10.1, 10.2, 10.3, 10.4, and 10.5 to this Form 8-K, and are incorporated herein by reference.