Potentially nearing a second chapter 11 bankruptcy filing, Avaya has approved a $6 million cash award to CEO Alan Masarek.

Avaya’s Alan Masarek

Avaya reported the cash award in a U.S. Securities and Exchange Commission (SEC) filing. Last July, it hired Masarek as CEO to help restructure the company. In September, it began companywide layoffs.

On Dec. 21, Avaya approved certain terms related to the company’s compensation programs for the fiscal year ending Sept. 30, 2023. Those include the $6 million cash award to Masarek and $1.2 million to Shefali Shah, chief administrative officer. The company added to Shah’s responsibilities to help improve its financial standing.

The cash awards are subject to a “recapture” provision that generally requires repayment in the event of a voluntary departure or termination “for cause” prior to Sept. 30 for Shah and Dec. 31 for Masarek.

“These cash awards are being paid in lieu of any bonus payment opportunity under the company’s annual incentive plan that would have otherwise been established for these executives in FY 2023, and also in lieu of the long-term equity incentive awards that historically would have been granted in the beginning of FY 2023,” Avaya said in its SEC filing.

Avaya previously gave Masarek a $4 million sign-on bonus.

Avaya Stock Trading Below NYSE’s Required Minimum

Also in late December, the New York Stock Exchange (NYSE) notified Avaya that the 30-day average closing price of its stock didn’t meet its required minimum of $1. Its stock price was below 20 cents a share on Wednesday. The company’s shares fell nearly 97% in 2022.

The NYSE notice does not result in the immediate delisting of Avaya’s stock from the NYSE.

“In accordance with the NYSE rules, the company intends to notify the NYSE of its intent to cure the stock price deficiency and return to compliance with the NYSE continued listing standards,” Avaya said in an SEC filing. “The company can regain compliance at any time within the six-month cure period following receipt of the NYSE notice if on the last trading day of any calendar month during the cure period, the company has a closing share price of at least $1 and an average closing share price of at least $1 over the 30 consecutive trading-day period ending on the last trading day of such month. The common stock will continue to be listed and trade on the NYSE during the six-month cure period, subject to the company’s compliance with other NYSE continued listing standards.”

Avaya could be nearing a bankruptcy filing in a bid to revamp its business and to overcome accounting problems. In December, people familiar with the matter said there was substantial doubt about the company’s “ability to continue” considering a debt maturity next year, the Wall Street Journal reported.

Avaya wouldn’t comment to Channel Futures about Masarek’s payout or the company’s stock price beyond what’s in the SEC filing.