Stereotaxis, Inc. (STXS) Executives Take Pay Cuts as the company faces lawsuit for making false statements has uncovered reports in the St. Louis Business Journal that
the senior management at troubled cardiology instrument maker Stereotaxis, including CEO Michael Kaminski, have taken voluntary pay cuts through 2013.

Kaminski took a 16 percent cut and now makes a base salary of $352,000, according to a regulatory filing today with the Securities and Exchange Commission.

Chief Technology and Operators Officer Douglas Bruce took a 10 percent pay cut and now makes $292,500.

Senior Vice President for Marketing and Business Development Frank Cheng took a 10 percent pay cut and now makes $256,500.

Senior Vice President and General Counsel and Secretary Karen Witte Duros took a 10 percent cut and now makes $243,000.

Vice President for Human Resources David Giffin took a 10 percent pay reduction and now makes $180,000.

In order to keep the executives from leaving the company, the board granted shares of restricted stock to each of them this week that will be subject to vesting at the end of an 18-month period ending on March 31, 2013, according to the filing.

St. Louis-based Stereotaxis, which makes cardiology instruments to treat coronary artery disease and arrhythmias, has signed a loan modification agreement with Silicon Valley Bank that requires the company raise $10 million in 60 days.

Last week, St. Louis law firm Carey, Danis & Lowe and San Diego law firm Robbins Umeda LLP filed a class-action lawsuit against Stereotaxis in federal court in St. Louis alleging that executives made false statements that caused shares of the company’s stock to trade at artificially high prices. Stereotaxis (NASDAQ: STXS) closed Wednesday at $1.11 a share, down from $3.95 a share Feb. 28.

source: Devicespace, St Louis Business Journal