Patrick Walsh, who in June was appointed as executive chairman of Town Sports International (TSI), will receive a salary of $30,000 per month, according to a filing the public company made with the Securities and Exchange Commission (SEC) on Wednesday.
Walsh was appointed to the position until the board of directors for TSI finds a new CEO, a move necessitated when Daniel Gallagher left the company in June for undisclosed reasons.
Gallagher had been with TSI since 1999 and was promoted from CFO to president and COO in January 2014. In February of this year, he was promoted to CEO when Bob Giardina, who had been CEO, was appointed executive chairman of the board. In March, the company reworked its board, and Giardiana became a non-employee member of the board.
Walsh's $30,000 per month salary was approved by the board, which is mostly comprised of new members that came on board in March as part of two separate agreements the company made that involve its three largest shareholders:
Walsh's salary will be pro-rated for the time that Walsh serves as executive chairman, and it will be paid in lieu of any cash retainer and committee fees to which he may otherwise have been entitled as a board member, according to the filing. Walsh will remain entitled to the annual equity awards to which non-employee director are entitled. Currently, an annual award of common stock has a value of $45,000, per the filing.
TSI operates clubs under the names of Boston Sports Clubs, New York Sports Clubs, Philadelphia Sports Clubs and Washington Sports Clubs.
In addition, the company is closing one of its clubs in Stamford, Connecticut, according to this report from the Stamford Advocate. Members were notified of the closing earlier this month, according to the story, which also noted that the company attributed the closing to "recent events" that have made it difficult to provide "the highest quality member experience."