New York-based holding company HRG Group has cut executive compensation for its 2015 fiscal year after incurring losses tied to energy and the loans made to RadioShack by its asset-based lending unit Salus Capital.
The firm is decreasing chief executive Omary Asali’s package by 40 percent to $12.9 million, as HRG failed to meet return targets, Bloomberg reported earlier this week citing regulatory filings with the Securities and Exchange Commission.
Executive vice president David Maura’s package also dropped to $6.6 million from more than $18 million a year earlier. The company also posted a net loss of $500 million for the 2015 fiscal year.
The New York-based company, which was earlier planning to sell off the Salus Capital unit, is now in the process of winding it down, according to multiple publications and sources. Needham Heights, Massachusetts-based Salus has been cutting staff for some time.
Andy Moser, Salus’ co-founder and chief executive, as well as Marc Price, an executive vice president at Salus, left in April. They later resurfaced at Monroe Capital to launch the firm’s retail ABL vertical.
Salus led a $250 million loan into the electronics retailer in 2013, which was one of its largest and riskiest transactions. When the retailer filed for bankruptcy in February last year, it became apparent that Salus wouldn’t be able to recoup most of its loan.
The ABL lender was launched in 2011 by Moser and Price and backed by Phil Falcone’s HRG Capital, formerly known as Harbinger Group.
A spokesman for HRG declined to comment on how long it would take Salus to wind down or how much money the firm was still managing.