The board of Novatel Wireless Inc. has named Alex Mashinsky, 49, as its permanent CEO, the business announced. Mashinsky, who had been interim CEO since June, signed an agreement Nov. 2 stating that he will serve initially for three years.
As CEO of the company, which makes wireless communications gear, Mashinsky will receive an annual base salary of $530,000 — with $371,000 paid in cash and the balance in stock. Beginning in 2017, Mashinsky will be able to take his salary entirely in cash.
In addition, he will be eligible for an annual bonus of 60 percent of his salary, and an incentive award of $282,000. His compensation package, detailed in a Nov. 6 securities filing, also includes additional stock and stock options.
Mashinsky became interim CEO on June 13, following a shakeup of the Novatel Wireless board and executive suite.
Novatel Wireless (Nasdaq: MIFI) also announced its third-quarter financial results on Nov. 6. The business reported a net loss of $8.8 million on net revenues of $44.3 million. In the third quarter of 2013, the company reported a net loss of $5.1 million on net revenues of $92.7 million.
With declining revenue, the company has cut expenses. The business pared R&D expenses from $39 million in the first nine months of 2013, to $24 million in the first nine months of 2014. Novatel Wireless also made cuts to its sales and marketing budget, as well as general and administrative expenses.
In other news, the company and its Enfora subsidiary said on Oct. 31 that they received a $25 million revolving credit facility from Wells Fargo Bank.