Table of Contents

HARTE HANKS, INC. 21 Executive Drive, Suite 103303 Chelmsford, MA 01824

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

TO BE HELD MAY 23, 20222023

As a stockholder of Harte Hanks, Inc., a Delaware corporation (the "Company"“Company” or “Harte Hanks”), you are hereby given notice of, and invited to virtually attend the Company's 2022Company’s 2023 annual meeting of stockholders (the "Annual Meeting"), which will be held virtually, exclusively via a live audio webcast on MonTuesday, May 23, 20222023, at 4:2:00 p.m.  Eastern Daylight Time, for the following purposes:

The Boardboard of Directorsdirectors of Harte Hanks has fixed the close of business on April 20, 20222023, as the record date for determining stockholders entitled to notice of and to vote at the Annual Meeting and, subject to applicable law and the provisions of our by-laws, any adjournment or postponement thereof. Only holders of record as of such date will be entitled to attend and vote at the Annual Meeting.  For more information, please refer to the enclosed proxy statement.

The enclosed proxy statement and our Annual Report on Form 10-K (the “Annual Report”) for the fiscal year ended December 31, 20212022 (which we are distributing in lieu of a separate annual report to stockholders) are available on our website at www.hartehanks.com, under the heading “SEC Filings” in the “Investors Relations” section of our website. The proxy statement for the 2022 annual meeting of stockholders is also available on the same section of our website. 

Your vote is important, and we urge you to review the accompanying materials carefully and to submit your proxy as soon as possible so that your shares will be represented at the Annual Meeting.  Submitting a vote before the Annual Meeting will not preclude you from voting your shares at the virtual Annual Meeting should you decide to join the webcast.

Thank you for your continued interest and support.

By Order of the Board of Directors,     Brian Linscott   Chief Executive Officer   Chelmsford, Massachusetts

Dear Fellow Shareholders: 

The year 20212022 was a watershed periodpivotal and successful year for Harte Hanks. We completedAfter years of reducing costs to stay ahead of declining revenue, we successfully stabilized the business, established sustainable profitability across our restructuring, implementedentire enterprise, and created a platform for profitable growth. Our progress enabled us to streamline our asset-light operating model,capital structure and strengthen our balance sheet, while also completing an acquisition to further expand our business offerings. As we approach our 100th anniversary, we are well positioned  to navigate the year ahead. The advancements in 2022 could not have been achieved without the efforts of our dedicated and passionate employees, and we delivered both top and bottom-line growthwould like to properly position the company going forward. With a more efficient and significantly more profitable company, we listed our shares on the Nasdaq Global Market and we obtained a traditional $25 million credit facility that eliminated the need for a previously required related-party guarantee. The Company is poised for profitable, sustainable growth, and we want to commend and thank our resilient and passionate employeesthem for the professionalism with which they serve our clients every day. It is becauseclients. At the outset, too, we would also like to thank our loyal shareholders. We are grateful for their enduring trust, which for many, spans years and even decades of them that ownership. Our plans and go to market strategies are all based on our efforts to drive greater value for your investment in Harte Hanks. With this introduction, let’s discuss the business of Harte Hanks.  

Our Business Segments

Harte Hanks is a stronger company today than we have been in the past several years. Our people drive our success, andnow positioned to ensure that we recruit and retain top talent, we reinstated the 401K match program, reduced our employees’ healthcare costs, and provided merit and incentive compensation for driving improvement across the company.

We enter 2022 withbenefit from a proven, profitable business model, a portfolio of loyal, tier-1blue-chip customers and a business built upondifferentiated, value-added offerings. Today’s Harte Hanks is clearly differentiated in the markets we serve, with significantWe have built extensive experience in business-to-business technology, healthcare, pharma, automotive, financial services, consumer products, and retail leveraging our three operating segments toand we provide unparalleled solutions for customers.   As an example, we secured a 3-year contract with a large healthcare company based on our unique ability to provide an end-to-end single-source solution that includes customer service, member engagement, product sourcing, inventory management, fulfillment, and distribution of wellness and nutrition kits for health systems members. No competitor of

During 2022, Harte Hanks could provide a comparable, end-to-end solution at a competitive price.

Harte Hanks deliversdelivered compelling productproducts and services from our three business segments:

In 2023, we will continue to evaluate and adjust each of these segments to best suit our go-to-market offerings, and to provide the highest level of service for our clients.

Increasingly, we are employing multiple disciplines to provide solutions and serve our customers in a diversified way. A great example of this is a customer which had a large-scale, unfortunate recall. This customer engaged Harte Hanks to contact affected customers through our call center, arrange shipments of replacement products through our fulfillment and logistics segment, and provide robust data analysis and reporting. This engagement not only resulted in increased revenue and margin for Harte Hanks, but also helped our customer navigate a challenging situation with minimal negative impact. More and more, we are identifying opportunities to bring multiple capabilities from our business segments to serve our customers.

We are Investing in Our reduced footprintFuture

We continue to invest in and consolidation efforts have eliminated some legacy infrastructure needs and improved our financial and operational results. Further, we anticipate benefits indrive digital transformation at Harte Hanks.  We completed the coming years as we exited additional facilitiesimplementation of a new ERP at the end of 2021,2022, allowing us to improve reporting and weanalytics, while streamlining back-office processes. Additional functions will continuebe added in 2023 to consolidate in 2022. Ourenhance productivity and further drive cost savings.  We are modernizing our telephony platform to a cloud-based Amazon connect environment. The new FDA-approved, 400,000 square foot fulfillment facility in Kansas City has driven,platform will enhance functionality and will continue to, drive, additional efficienciescapabilities including improved capabilities with marketing, demand generation, sales generation, analytics, and position Harte Hanks for excellent growth opportunities.

We invested, and will continue to invest, in talent and technology to drive long-term profitable growth. We hired Don Aicklen as our Senior Vice President of Sales and Marketing, and we have successfully increased our marketing campaigns and expanded our sales pipeline. Elliott Peterson joined us as Chief Technology Officer, charged with accelerating the modernization of our technology infrastructure to reduce costs, deploy security improvements, and drive growth through technology. We have been rigorously implementing a new ERP, installing a new order and warehouse management system, and investing in marketing technology/CRM applications thatmarketing.  The cloud-based telephony environment will allow us to simplify deliveryintegrate AI and expand servicesmachine learning to provide a better customer experience and ensure quality with real-time conversational analytics with sentiment analysis, automated data redaction, and intelligent bots. In addition to the many features it brings, the system will provide improved call quality, resiliency, and allow us to provide service in many geographical regions across the world. We are also investing in software that will enhance our capabilities with fulfillment and logistics, all of which will benefit the clients we serve in those markets. 

How this investment is paying off now

Our digital transformation is enhancing our go-to-market offerings as we leverage telephony, CRM, data, and analytics capabilities from our Marketing Services and Customer Care segments to provide unparalleled solutions to new and existing customers.  A compelling example is a Hospitality & Leisure client win in 2022 where Harte Hanks is helping our client achieve aggressive revenue growth targets by leveraging our Dataview product, as well our specialized analytics capabilities, to enhance targeting our client’s potential customers who have a “higher propensity” to buy.  We have, and are developing, targeted marketing campaigns - followed by outbound calling - to help convert these marketing campaigns into leads, and then ultimately, into closed client sales.  The collective efforts from Marketing Services and Customer Care team are provide an unparalleled solution that is successfully driving growth for customers. The modernizationour client.

Our Efforts this year (past and present) to Drive Shareholder Value

Our sustained profitability enabled us to take steps to improve our balance sheet as well, by using cash reserve to fully pay-down our open line of credit. We also took the proactive step to redeem our preferred shares for nearly $10 million, eliminating the impact of preferred dividends going forward, and streamlining our capital structure. Indeed, we ended the year with a positive shareholders’ equity balance of $18 million. This is the first time Harte Hanks recorded a positive balance since 2017. These are all examples of pro-active efforts and progress we have made to stabilize our business. Finally, we are now in position to take strategic steps to fully-fund and divest one of our technology platformlong-term pension plans, removing a perceived risk and applicationsfuture cash funding obligations, and to implement a stock buyback program, which will further enhance growthserve to increase shareholder equity and drive shareholder value.

Throughout 2021Our Acquisitions

In December, we strengthened our management teamacquired InsideOut Solutions, LLC, an inside sales optimization firm that offers inbound and outbound sales outsourcing and experimentation services for partners globally. InsideOut is compatible with proven leaders in Fulfillment & LogisticsHarte Hanks Customer Care and Marketing Services business segments and will bolster our expertise and ability to help customers drive accountability, profitability,growth by optimizing sales and growth. In the first quarter of 2021, we hired Pat O’Brien to lead and grow our Fulfillment & Logistics segment. Pat is an innovative operational leader with experience at Wayfair and Bain Consulting. Additionally, we hired Janel Harris to expand our healthcare vertical and lead our Marketing Services segment. Janel has held senior leadership roles at MRM, GSW Worldwide and GKV Communications, and she has been instrumental to drivingmarketing demand generation programs. Importantly, InsideOut’s sales optimization expertise augments our marketing and sales efforts with product offerings in a variety of industry verticals. Ben Chacko remains the leader of our Customer Care segment. He and his team have delivered excellent financial and operational results and remain focused on leveraging ourinitiatives, including data and analytics, skillswhich will serve to further differentiate our Customer Care offerings. The combined organizations began operations at Harte Hanks on December 1, 2022, with 136 employees joining the Harte Hanks team. Harte Hanks also adds a seventh location to its North American offices with the acquisition of InsideOut's 7,500-square-foot headquarter facility based in St. Petersburg, Florida.  We look forward to working with these talented employees as we continue to grow our inbound and outbound service offerings for the benefit of our clients.  

WithOur Future

Today, looking back at the actions we took in the past year, Harte Hanks today enjoys a stronger financial profile and a stabilizedproven platform for sustainable growth,growth. With that said, we recognize that there will be challenges as we continue to grow the business, both in terms of market environments, inflation and business trends that affect our confidence in the future of Harte Hanks has never been stronger. The restructuring activitiesclients That said, we are behind us, enabling uspoised to focusadjust - and we are focused on driving profitable growth, while taking stepsinvesting in our organization to ensure the long-term sustainability, ofall to achieve the organization. We have a focused strategy within key verticals, focused efforts to expand and leverage strong client relationships, and a world-class management team to leadbest financial results for our business. Our recently launched Environmental, Social and Governance, or ESG, initiative aims to build on our core strengths while promoting proper corporate stewardship at Harte Hanks. By defining robust processes to measure our diversity, reward our employees, maintain excellence in corporate governance and serve as good stewards of our communities and our planet, we aim to ensure that significant business risks are carefully managed, and that Harte Hanks remains an attractive destination for exceptional employees and investors.shareholders.  

We appreciate your past, present and continued investment in Harte Hanks, and thank you for your continued support.

Sincerely,

Jack Griffin                                                                      Brian Linscott

Chairman of the Board                                                    Chief Executive Officer

PROXY STATEMENT TABLE OF CONTENTS

HARTE HANKS, INC.

21 Executive Drive, Suite 103303

Chelmsford, MA 01824

PROXY STATEMENT

FOR THE ANNUAL MEETING OF STOCKHOLDERS

TO BE HELD May 23, 20222023

This proxy statement is being furnished to you in connection with the solicitation of proxies by the Board of Directors (the “Board”) of Harte Hanks, Inc. for use at our virtual annual meeting of stockholders (the “Annual Meeting”). In this proxy statement, references to “Harte Hanks,” the “Company,” “we,” “us,” “our” and similar expressions refer to Harte Hanks, Inc., unless the context of a particular reference provides otherwise. We refer to various websites in this proxy statement. NeitherNone of the websites referenced in this proxy statement, including the Harte Hanks website, nor any other website included in this proxy statement is intended to function as a hyperlink, and the information contained on such websites is not a part oftherein, shall be deemed to be incorporated into this proxy statement.

GENERAL INFORMATION

20222023 Annual Meeting Date and Location

This year’s Annual Meeting will be held on Monday,Tuesday, May 23, 20222023 at 4:2:00 p.m. Eastern Daylight Time, or at such other time to which the Annual Meeting may be adjourned or postponed. The Annual Meeting will be a completely virtual meeting of stockholders. You may attend, vote and submit questions during the Annual Meeting via live audio webcast on the Internet at http://www.virtualshareholdermeeting.com/HHS2022.HHS2023. We expect that in future years we will continue to host aonly virtual meeting only,meetings, which we believe meaningfully enhances opportunities for stockholder attendance and participation and is also consistent with our cost reduction efforts to further position the companyCompany for future growth.

Delivery of Proxy Materials

Mailing Date

The approximate date on which this proxy statement and accompanying proxy are first being sent or given to stockholders is April 25, 2022.28, 2023.

Important Notice Regarding Availability of Proxy Materials For 20222023 Annual Meeting

We are mailing all stockholders this proxy statement and our Annual Report on Form 10-K for the fiscal year ended December 31, 20212022 (the “Annual Report”). The proxy statement and our Annual Report are also available on our website at www.hartehanks.com, under the “SEC Filings” in the “Investor Relations” section and under the “SEC Filings” subsection of the Investor Relations page.our website.

Any stockholder may request to receive proxy materials in printed form by mail or electronically by email on an ongoing basis. Choosing to receive future proxy materials by email will save us the cost of printing and mailing documents and will reduce the impact of annual meetings on the environment. A stockholder’s election to receive proxy materials by email will remain in effect until the stockholder terminates that election.

Stockholders Sharing an Address

Registered Stockholders - Each registered stockholder (youYou are a registered stockholder if you own shares in your own name on the books of our transfer agent, Computershare Trust Company, N.A. The United States Securities and Exchange Commission (the “SEC”) will receive one copy per account evenpermits a single set of annual reports and proxy statements to be sent to any household at which two or more registered stockholders reside if atthey appear to be members of the same address, unlessfamily. Each stockholder continues to receive a separate proxy card. This procedure, referred to as householding, reduces the affected stockholder has provided contrary instructions.volume of duplicate information stockholders receive and reduces mailing and printing expenses. A number of brokerage firms have instituted householding. If your household would like to receive duplicate rather than single mailings in the future, please write to the Company at 21 Executive Drive, Suite 103,303, Chelmsford, Massachusetts 01824 (Attention: Secretary), or call 1-512-434-1100.

Street-name Stockholders - Most banks and brokers are delivering only one copy of the Annual Report and proxy statement to consenting street-name stockholders (you are a street-name stockholder if you own shares beneficially in the name of a bank, broker or other holder of record on the books of our transfer agent) who share the same address. This procedure reduces printing and distribution costs. Those who wish to receive separate copies may do so by contacting their bank, broker or other nominee, or (if offered) by checking the appropriate box on the voting instruction card sent to them. Similarly, most street-name stockholders who are receiving multiple copies of the Annual Report and proxy statement at a single address may request that only a single set of such materials be sent to them in the future by checking the appropriate box on the voting instruction card sent to them or by contacting their bank, broker or other nominee.

Voting

Stockholders Entitled to Vote

The record date for determining the common stockholders entitled to notice of and to vote at the Annual Meeting and any adjournment or postponement thereof is the close of business on April 20, 20222023 (the “Record Date”). As of April 20, 2022,023, we had 7,020,203 7,490,107 shares of common stock issued and outstanding, which were held by approximatelyapproximatel 943 hy 852 hoolderslders of record.  Please refer to “Security Ownership of Management and Principal Stockholders” for information about common stock beneficially owned by our directors, executive officers and principal stockholders as of the date indicated in such section. Record Date stockholdersstockholders. Stockholders are entitled to one vote for each share of common stock owned as of the Record Date.  A list of stockholders entitled to vote at the virtual Annual Meeting will be open to the examination of any stockholder for any purpose germane to the Annual Meeting, during ordinary business hours at our corporate headquarters located at 21 Executive Drive, Suite 103,303, Chelmsford, MA 01824 for a period of at least ten days prior to the virtual Annual Meeting and on the virtual Annual Meeting website during the entirety of the meeting.

Voting of Proxies by Management Proxy Holders

The Board has appointed Mr. Brian Linscott (Chief Executive Officer), Ms. Laurilee Kearnes (Chief Financial Officer) and Mr. Robert Wyman (General Counsel), each with full powers of substitution and resubstitution, as the management proxy holders for the Annual Meeting. Your shares will be voted in accordance with the instructions on the proxy card you submit by mail, or the instructions provided for any proxy submitted by telephone or online, as applicable. For stockholders who have their shares voted by duly submitting a proxy online, by mail or telephone, the management proxy holders will vote all shares represented by such valid proxies as specified by such holder, and if not specified, in accordance with the Board’s recommendations:

As of the date of printing of this proxy statement, the Board is not aware of any other business or nominee to be presented or voted upon at the Annual Meeting. Should any other matter requiring a vote of stockholders properly arise, the proxies in the enclosed form confer upon the person or persons entitled to vote the shares represented by such proxies' discretionary authority to vote the same in accordance with their discretion.

Quorum; Required Votes

The virtual presence at the Annual Meeting, including by proxy, of holders of a majority of all of the shares of stock entitled to vote at the Annual Meeting present in person or by proxy is necessary to constitute a quorum for the transaction of business at the Annual Meeting. Each vote represented at the Annual Meeting virtually or by proxy will be counted toward a quorum. Abstentions and broker “non-votes” (which are described below) are counted as present at the Annual Meeting for purposes of determining whether a quorum is present. If a quorum is not present, the Annual Meeting may be adjourned or postponed from time to time until a quorum is obtained.

Submission of Proposal IIIIV (Ratification of the Selection of Independent Registered Public Accounting Firm) for ratification by our stockholders is not legally required. However, the Board and its Audit Committee believe that such submission is an opportunity for stockholders to provide feedback to the Board and its Audit Committee on an important issue of corporate governance. If the stockholders do not ratify the selection of Baker Tilly US, LLP as our independent registered public accounting firm for the fiscal year ended December 31, 2022,2023, the Audit Committee will reconsider the selection of such firm as independent auditors, although the results of the vote are not binding on the Audit Committee. The Audit Committee has the sole authority and responsibility to retain, evaluate, and, where appropriate, replace the Company’s independent auditors. Ratification by the stockholders of the selection of Baker Tilly US, LLP does not limit the authority of the Audit Committee to direct the appointment of new independent auditors at any time during fiscal year 20222023 or thereafter.

Voting Procedures

Registered Stockholders - Registered stockholders may vote their shares or submit a proxy to have their shares voted by one of the following methods:

Street-name Stockholders - Street-name stockholders may generally vote their shares or submit a proxy to have their shares voted by one of the following methods:

A “broker non-vote” occurs when a nominee, such as a broker or dealer, holding shares for a beneficial owner does not vote on a particular proposal because the nominee does not have discretionary voting power with respect to that item and has not received instructions from the beneficial owner. On routine matters, brokers have the discretion to vote shares held in “street name” – a term that means the shares are held in the name of the broker on behalf of its customer, the beneficial owner. If your shares are held in “street name” by a broker and you wish to vote on the proposal to elect the directors (Proposal 1), the advisory vote to approve named executive officer compensation (Proposal 2), the advisory vote on the frequency of future advisory votes to approve the compensation of named executive officers (Proposal 4), or to act upon any other non-routine business that may properly come before the Annual Meeting, you should provide instructions to your broker. If you do not provide your broker with instructions, your broker generally will only have the authority to vote on the ratification of the appointment of Baker Tilly US, LLP, as the Company’s independent registered public accounting firm (Proposal 3). All other matters at the Annual Meeting are expected to be non-routine and therefore brokers will not be entitled to vote on a beneficial owner’s behalf without voting instructions or discretionary authority on such matters. 

If you need assistance in voting your shares, please call 1-512-434-1100 no later than the date before the Annual Meeting.

As a matter of policy, proxy cards, ballots and voting tabulations that identify individual stockholders are kept confidential by the Company. Such documents are made available only to the inspector of election and personnel associated with processing proxies and tabulating votes at the Annual Meeting. The votes of individual stockholders will not be disclosed except as may be required by applicable law.

Revoking Your Proxy

If you are a registered stockholder, you may revoke your proxy at any time before the shares are voted at the Annual Meeting by:

Your latest dated proxy card or telephone or internet proxy will be the one that is counted.

If you are a street-name stockholder and you vote by proxy, you may change your vote by submitting new voting instructions to your bank, broker or nominee in accordance with that entity’s procedures.

Dissenters’ Rights of Appraisal

None of Delaware law (the state of incorporation of Harte Hanks, Inc.), our Certificate of Incorporation, or our Bylaws, provides for appraisal or other similar rights for dissenting stockholders in connection with any of the proposals to be voted upon at the Annual Meeting. Accordingly, our stockholders will have no right to dissent and obtain payment for their share.

Attending the Annual Meeting Virtually

The Annual Meeting will be a completely virtual meeting of stockholders conducted exclusively by a live audio webcast.  Only record or beneficial owners of Harte Hanks common stock as of the Record Date may attend the virtual Annual Meeting, vote their shares and submit online questions.  

    Stockholders may access the meeting by visiting http://www.virtualshareholdermeeting.com/HHS2022HHS2023, and using the 16-digit control number included on the Notice of Annual Meeting, on the proxy card or on the instructions accompanying the proxy materials. The Annual Meeting will begin promptly at 4:2:00 p.m., Eastern Daylight Time, and you should allow ample time for check-in procedures.

    If you wish to submit a question at the Annual Meeting, you may do so in advance at http://www.virtualshareholdermeeting.com/HHS2022,HHS2023, or you may type it into the dialog box provided at any point during the virtual meeting (until the floor is closed to questions).  We will endeavor to answer as many stockholder-submitted questions as time permits that comply with the Annual Meeting rules of conduct. We reserve the right to exclude questions regarding topics that are not pertinent to meeting matters or Company business. If we receive substantially similar questions, we may group such questions together and provide a single response to avoid repetition.

Solicitation Expenses

We will bear all costs incurred in the preparation, assembly, mailing and solicitation of proxies by our Board. In addition to solicitation by mail, our directors, officers and employees may solicit proxies personally or by telephone, e-mail, facsimile or other means, without additional compensation. We may also make arrangements with brokerage houses and other custodians, nominees and fiduciaries for the forwarding of solicitation materials to the beneficial owners of shares of common stock held by such persons, and we may reimburse these brokerage houses and other custodians, nominees and fiduciaries for reasonable expenses incurred in connection therewith.

Additionally, the Board has retained Saratoga Proxy Consulting, LLC, a proxy solicitation firm, who may solicit proxies on the Board’s behalf. We will pay Saratoga Proxy Consulting, LLC an estimated fee not to exceed $7,500 plus costs and expenses. Saratoga Proxy Consulting, LLC and certain related persons will be indemnified against certain liabilities arising out of or in connection with the engagement.

Delinquent Section 16(a) Reports

Section 16(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and related rules of the SEC require our directors, officers, and persons who own more than 10% of a registered class of our equity securities (collectively the "Reporting Persons"), to file initial statements of beneficial ownership of securities and statements of changes in beneficial ownership of securities with respect to our equity securities with the SEC. All Reporting Persons are required by SEC regulations to furnish us with copies of all Section 16(a) reports that they file. As with many public companies, we provide assistance to our directors and executive officers in making their Section 16(a) filings pursuant to powers of attorney granted by our insiders.

To our knowledge, based solely on our review of the copies of Section 16(a) reports provided to us by such Reporting Persons, including those reports that we have filed on behalf of our directors and executive officers pursuant to powers of attorney, or written representations from certain Reporting Persons we believe that there has been compliance with all Section 16(a) filing requirements applicable to such Reporting Persons with respect to the fiscal year ended December 31, 2021,2022, except one Form 4 for Mr. Brian Linscott, and Ms. Kearnes and one Form 3 for Mr. Wyman, were each filed late. The failure to file the Form 3 and Form 4s was inadvertent on the part of the Company’s officers and directors. The Company has enhanced its compliance system and level of awareness in order to ensure timely filings moving forward.

Implications of Being a “Smaller Reporting Company”

We qualify as a “smaller reporting company” as such term is defined in Rule 405 of the Securities Act of 1933, as amended (the “Securities Act”), and Item 10 of Regulation S-K. Accordingly, and in accordance with relevant SEC rules and guidance, as a smaller reporting company, we are allowed to take advantage of specified exemptions and reduced disclosure obligations, including with respect to executive compensation disclosure, in our periodic reports and proxy statements.

DIRECTORS AND EXECUTIVE OFFICERS

The following table sets forth certain information about our current directors as of April 25, 202228, 2023:

* Chairman

Members of the Board are generally elected at each annual meeting of the Company’s stockholders to serve until the next annual meeting of the Company’s stockholders.

Immediately following last year's Annual Meeting, the size of the Board was decreased to six (6) members as a result of Mr. Evan Behrens’ decision to retire from the Board and not stand for re-election before the 2021 annual meeting.  

In September 2021, Mr. Al Tobia resigned from the Board and the Board decided to reduce the Board size to five (5) members.

Brian Linscott was promotedhas served as the Company’s Chief Executive Officer insince June 2021. Mr. Linscott joined the Company as Chief Operating Officer in January 2020.  Mr. Linscott has over two decades of experience advising clients and C-level executives on operational improvements, growth strategies, acquisitions, corporate development and capital structure across a variety of industries including media, manufacturing, and transportation. From 2015 to 2019, he served as a Partner at BR Advisors where he led the operational improvement of radio and printing companies, developed new partnerships, and facilitated asset transactions. He also serveshas served as Operating Partner at Traverse Pointe Partners since 2014, where he advises a private equity fund on financial and operational assessment of equity investments and developeddevelops post-acquisition operational strategies to create stockholder value. From 2013 to 2015, Brian served as a Managing Director at Huron Consulting Group (NASDAQ: HURN) where he managed client relationships, oversaw consulting teams, and developed new business opportunities in Huron’s Business Advisory practice.  From 2009 to 2012, Brian served as Chief Financial Officer / Senior Vice President at Sun Times Media, LLC where he created and executed a restructuring plan that led to substantial EBITDA growth, cash flow improvement, and a successful sale of the company.  Mr. Linscott received his B.S. in Finance from the University of Illinois, Urbana.

As ourthe Company’s Chief Executive Officer, Mr. Linscott provides valuable insight to the board on our day-to-day operations. In addition, Mr. Linscott’s significant experience with overseeing operations and consulting teams and in particular his experience developing new business in various industries, provides the Board with valuable insight as the Company grows and returns to profitability.

Genevieve “Genni”Genni Combes has served as a director of Harte Hanks since May 2021.  Genevieve “Genni”Ms. Combes currently serves as the CFO at CrowdStreet, Inc. where she leads the finance and financial operations teams.  She has broad experience as a finance and operations executive at both public and private companies. Ms. Combes previously served as CFO at ApplePie Capital, Inc. Prior to that, she served as Vice President, Finance Partner Relations and Operations at Sungevity and the Senior Vice President at ZipRealty. Earlier in her career, Ms. Combes served as a Managing Director and Sr. Equity Analyst at J.P. Morgan (NYSE: JPM) and Hambrecht & Quist where she led the e-commerce and consumer research groups.

We believe Ms. Combes’ experience in leading the finance, financial planning and financial operations teams at a number of different entities, as well as her experience as a senior equity analyst at a number of different investment banks, will provide valuable expertise to the Board.

David L. Copeland  has served as a director of Harte Hanks since 1996.  He has been employed by SIPCO, Inc., the management and investment company for the Andrew B. Shelton family, since 1980, and currently serves as its President.  Since 1998, he has served as a director of First Financial Bankshares, Inc.(NASDAQ: FFIN), a financial holding company.  Currently, he serves on the executive, risk and nominating committees and is also the audit committee chairman of First Financial Bankshares.

We believe that Mr. Copeland’s qualifications for our Board include his experience serving on various committees for a publicly traded financial holding company.  We also believe he offers us extensive knowledge of financial instruments, financial and economic trends and accounting expertise from serving as presidentPresident of SIPCO, Inc. and on the audit committee of First Financial Bankshares.  Mr. Copeland, a certified public accountant and a chartered financial analyst, would qualify as a financial expert for our audit committee.

John H. “Jack” Griffin, Jr. has served as a director of Harte Hanks since July 2018.  In April 2021, he was appointed as the Company’s Chairman of the Board. From April to December of 2019, he served as Vice Chairman and Chairman of the Operations Committee of Harte Hanks.  Prior to that, he was a member of the Harte Hanks Office of the Chief Executive Officer (the “Office of the CEO”) from August 2018 to January 2019. Mr. Griffin is currently the Operating Chairman of Magazines at Dotdash Meredith, a subsidiary of IAC.IAC (NASDAQ: IAC). From 2018 to 2021 he was the Chairman of the Board of Dennis Publishing, a London-based firm owned by Exponent, a UK Private Equity Fund. Dennis Publishing was sold to Future PLC in October 2021.   From 2016 to 2018 Mr. Griffin served as Managing Director at Oaklins DeSilva+Phillips, an advisory firm in New York City focused on mid-market M&A transactions, valuations and restructurings for firms in media, marketing services, information, education and health care communications. Previously, as CEO and director of Tribune Publishing Company (from 2014-2016), Mr. Griffin led the spin-off of the Tribune Publishing Company'sCompany’s Newspaper Division into a separate publicly traded company. Before Tribune, Mr. Griffin founded and served as CEO of Empirical Media LLC, a consulting firm that assisted legacy media companies with digital transition, restructuring and strategic planning, from 2011-2014. Mr. Griffin was previously CEO of Time Inc. and spent a dozen years at Meredith Corporation in senior executive capacities.

We believe that Mr. Griffin’s qualifications for our Board include his proven success as both an operator and advisor to companies undergoing restructuring and reengineering solutions, along with his demonstrated record of achieving and exceeding financial targets in demanding private and public company environments. In addition, the experience Mr. Griffin gained as a member of the Office of the CEO and Chairman of the Operations committee enables him to provide the Board with additional insight into the Company’s operations, strategic initiatives and personnel.

Bradley L. Radoff has served as a director of Harte Hanks since May 2021.  Mr. Radoff has servedcurrently serves as a private investor and as Principal of Fondren Management LP, a private investment management company, and has held such positions since January 2005.  Mr. Radoff previously served as a Portfolio Manager at Third Point LLC, anda registered investment advisor firm, from 2006 to 2009.  He also served as a Managing Director of Lonestar Capital Management LLC.LLC, a registered investment advisory firm, from 2003 to 2004. Mr. Radoff served as a director of Citadel Investment Group LLC, a global financial institution, from 2000 to 2003.  Mr. Radoff has beenserved as a director of the boardFarmer Brothers Co. (NASDAQ: FARM), a coffee roaster and wholesale equipment servicer and distributer of coffee, tea and allied products, since October 2022;  as a director of Enzo Biochem, Inc. (NYSE: ENZ), an integrated diagnostics, clinical lab and life sciences company, since January 2022.  Mr. Radoff served as a director of VAALCO Energy Inc (NYSE: EGY), a Texas-based independent energy company, from June 2020 to January 2022; Support.com (NASDAQ:(formerly NASDAQ: SPRT), a leading provider of cloud-based software and services, for technology support sincefrom June 2016.  Since June 2020, Mr. Radoff has been a director of Vaalco Energy Inc (NYSE: EGY), an oil2016 until its merger in September 2021, and gas exploration, development, and production company and previously served as a director of PogoPage Producing Company (formerly NYSE: PPP), an oil and gas exploration, development and production company, from March 2007 to November 2007 prior tountil the completion of its sale to Plains Exploration.Exploration & Production Company in November 2007. Mr. Radoff graduated summa cum laude with a B.S. in Economics from The Wharton School, University of Pennsylvania.

We believe that Mr. Radoff’s qualifications for our Board include his experience serving on the boards of directors for several publicly traded companies and his extensive experience in finance and working with technology. Mr. Radoff’s experience as Principal of a private investment management company provides valuable expertise in management and finance. Mr. Radoff is also a significant shareholder which the Board believes will be valuable as it continues to develop its strategic view for the Company.

The following persons are our current executive officers and hold the positions set forth below:

For biographical information about Brian Linscott, our Chief Executive Officer, see the table above in this "Directors“Directors and Executive Officers"Officers” section. 

Laurilee Kearnes has served as the Company’s Chief Financial Officer since November 15, 2019.  Ms. Kearnes previously served as the Company’s Principal Accounting Officer and Vice President, Finance and Controller from August 2018 to November of 2019. Ms. Kearnes has over 2025 years of experience in accounting and finance roles, including the last 1920 years with Harte Hanks in various positions including Group Controller, VP Finance, and Group VP Finance, Accounting Shared Services.  Ms. Kearnes started her career in public accounting and held accounting positions with Nutraceutical Corp. and Brooks Automation prior to joining the Company. She holds a Bachelor of Science in Accounting and a Master of Accounting from Utah State University.

Robert T. Wyman has served as General Counsel at Harte Hanks since 2021.  Mr. Wyman is responsible for all legal, regulatory, and corporate governance activities for the domestic and international businesses of the Company.  Prior to serving as General Counsel, Mr. Wyman acted as Corporate Counsel for the Company beginning in 2011, and concurrent with this service, also served (in private practice) as the founding partner and as of counsel for Wyman & Barton, p.a. During his tenure at Wyman & Barton, Mr. Wyman’s practice centered on real estate, and civil and criminal litigation. Mr. Wyman also previously served on the Board of Directors of Georgetown Bank, and on the Board of Directors of several charitable/ non-profit organizations including the Lowell Massachusetts Boys and Girls Club, New Wave Swim Club, and as an advisor to the Merrimack Valley Housing Partnership, Project Genesis. An attorney practicing for more than 32 years, Mr. Wyman is a graduate of the University of Massachusetts | Lowell (1985, B.S. Business Management), and New England Law | Boston (1990, Juris Doctorate). 

CORPORATE GOVERNANCE

We believe that strong corporate governance helps to ensure that our company is managed for the long-term benefit of our stockholders.  We continuously review our corporate governance policies and practices, the applicable federal securities laws regarding corporate governance, and the corporate governance standards of NASDAQ, the stock exchange on which our common stock is listed, to ensure compliance with all applicable laws and regulations and we will contemplate any changes to what is considered best practices for corporate governance even if such changes are not required by relevant laws and regulations or NASDAQ. This review is part of our continuing effort to enhance our corporate governance and to communicate our governance policies to stockholders and other interested parties.

You can access and print, free of charge, the charters of our Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee, as well as our Corporate Governance Principles, Business Conduct Policy, Code of Ethics and certain other policies and procedures on our website at www.hartehanks.com under the “Governance” tab of our “Investors Relations” section.   The information on our website is not incorporated by reference and is not part of this proxy statement.  Additionally, stockholders can request copies of any of these documents free of charge by writing to the following address:

Harte Hanks, Inc. (Attention: Secretary)

21 Executive Drive, Suite 103303

Chelmsford, MA 01824

From time to time, these governance documents may be revised in response to changing regulatory requirements, our evaluation of evolving best practices and industry norms and input from our stockholders and other interested parties. We encourage you to check our website periodically for the most recent versions.

Board of Directors and Board Committees

Our business and affairs are managed under the direction of the Board. The Company'sCompany’s By-laws provide that the Board will consist of the number of directors designated by the Board from time-to-time, and, in the absence of such designation, the Board will consist of seven (7) directors.  Currently, the Board has five (5) directors, including the CEO. 

The Board elects the principal executive officer and other corporate officers, acts as an advisor to and as a resource for management, and monitors management’s performance. The Board, with the assistance of the Compensation Committee, also assists in planning for the succession of the principal executive officer and certain other key positions. In addition, the Board oversees the conduct of our business and strategic plans to evaluate whether the business is properly being managed, and reviews and approves our financial objectives and major corporate plans and actions. Through the Audit Committee, the Board reviews and approves significant changes in the appropriate auditing and accounting principles and practice and provides oversight of internal and external audit processes, financial reporting and internal controls.

Our Board of Directors has established an Audit Committee, a Compensation Committee and Nominating and Corporate Governance Committee, which have the composition and responsibilities described below. Each committee operates under a charter that has been approved by the Board of Directors.

Majority Voting Provisions of the Company'sCompany’s Bylaws

On July 17, 2019, the Board adopted Amendment No. 2 (the “Amendment”) to the Fifth Amended and Restated Bylaws of the Company. The Amendment amends Article I, Section 8 of the Bylaws to provide for the resignation of any director who fails to receive a majority of votes cast in favor of his or her election at an annual meeting of the stockholders (assuming that the election is uncontested) (the “Majority Voting Provision”). Under the Majority Voting Provision, each nominee is required to submit an irrevocable resignation, which resignation would become effective upon (1) that person not receiving a majority of the votes cast in favor of his or her election in an uncontested election and (2) acceptance by the Board of that resignation in accordance with the policies and procedures adopted by the Board for such purpose. The Board, acting on the recommendation of the Nominating and Corporate Governance Committee, is required to determine whether or not to accept the resignation not later than 90 days following certification of the stockholder vote, and the Board is required to accept the resignation absent a determination that a compelling reason exists for concluding that it is in the best interests of the Company for the person in question to remain as a director.

In connection with the adoption of the Amendment, the Board also adopted revisions to the Company’s Corporate Governance Principles and Nominating and Corporate Governance Committee Charter to implement the Majority Voting Provision and set forth the procedures governing the resignation of directors who do not receive a majority of the votes cast in an uncontested election.

Audit Committee

We have a separately designated standing Audit Committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Audit Committee is currently comprised of Ms. Combes and Messrs. Griffin and Radoff.  From January 1, 2021 to March 2021,Radoff, each of whom served throughout 2022.  Ms.Combes is presently the Audit Committee was comprised of Evan Behrens, John H. Griffin and Alfred V. Tobia, Jr.  Mr. Behrens was the previous Audit Committee Chair through March 2021 and Mr. Griffin was the Chair through May 2021.  In May 2021, Bradley Radoff and Genni Combes were appointed to the Audit Committee and Ms. Combes was appointed the new Chair and remains in the position.  Ms. Combesshe is considered an “audit committee financial expert,” as currently defined under the SEC and NASDAQ rules.

Our Board has determined that all the Audit Committee members are independent within the meaning of the applicable SEC rules and the listing standards of NASDAQ as such requirements apply to members of audit committees and meet the financial literacy requirements of the NASDAQ.

The primary function of the Audit Committee is to assist the Board in fulfilling its oversight of (1) the integrity of our financial statements, including the financial reporting process and systems of internal controls regarding finance, accounting, and legal compliance, (2) the qualifications and independence of our independent auditors, (3) the performance of our internal audit function and independent auditors, and (4) our compliance with legal and regulatory requirements.

The Audit Committee’s role is one of oversight. Management is responsible for preparing the Company’s financial statements and the independent registered public accounting firm is responsible for auditing those financial statements. Management, including the internal audit staff, or outside provider of such services, and the independent registered public accounting firm have more time, knowledge and detailed information about the Company than do Audit Committee members. Consequently, in carrying out its oversight responsibilities, the Audit Committee will not provide any expert or special assurance as to the Company’s financial statements or any professional certification as to the independent registered public accounting firm’s work.

Compensation Committee

The Compensation Committee is currently comprised of Messrs. Radoff and Griffin and Ms. Combes. From July 23, 2020 to May 2021, theCombes, each of whom also served throughout 2022. Mr. Radoff is presently our Compensation Committee was comprised of John H. Griffin, Jr., Evan Behrens, and Alfred V. Tobia, Jr. From the conclusion of the 2021 Annual Meeting through September 2021, the Compensation Committee was composed of Messrs. Griffin, Tobia and Radoff and Ms. Combes.  Mr. Tobia served as the Compensation Committee Chair through [September] 2021. In May 2021, Bradley Radoff and Genni Combes were appointed to the Compensation Committee and Mr. Radoff was appointed the new Chair in [September] 2021 and remains in the position.Chair.

The primary functions of the Compensation Committee are to (1) review and approve corporate goals and objectives relevant to principal executive officer compensation, evaluate the principal executive officer’s performance in light of those goals and objectives, and together with the other independent directors (as directed by the Board), determine and approve the principal executive officer’s compensation level based on this evaluation, (2) review and recommend to the Board (as directed by the Board) non-principal executive officer compensation, incentive-compensation plans and equity-based plans, and (3) to the extent such disclosure is required, review and discuss with management the Company’s “Compensation Discussion and Analysis” and produce a committee report on executive compensation as required by the SEC to be included in our annual proxy statement or Annual Report on Form 10-K filed with the SEC.

In addition, the Compensation Committee may delegate power and authority to a subcommittee, provided that the subcommittee consists of at least two members and the Compensation Committee does not delegate any power or authority required to be exercised by the Compensation Committee as a whole.

Nominating and Corporate Governance Committee

The Nominating and Corporate Governance Committee is currently comprised of Messrs. Radoff, Griffin and Ms. Combes. From June 23, 2021 to September 24, 2021, the Compensation Committee was comprisedCombes, each of Messrs. Radoff,whom also served throughout 2022. Mr. Griffin and Tobia and Ms. Combes. From January 1, 2021 to June 22, 2021, theis presently our Nominating and Corporate Governance Committee was composed of Evan Behrens, Genni Combes, Bradley Radoff, John H. Griffin, Jr. and Alfred V. Tobia, Jr. Mr. Tobia served as the Nominating and Corporate Governance Committee Chair until September 2021. In [September] 2021, Mr. Griffin was appointed the new Chair and remains in the position.Chair.  

The primary functions of the Nominating and Corporate Governance Committee are to (1) develop, recommend to the Board, implement and maintain our Company’s corporate governance principles and policies, (2) identify, screen and recruit, consistent with criteria approved by the Board, qualified individuals to become Board members, (3) recommend that the Board select the director nominees for the next annual meeting of stockholders, (4) assist the Board in determining the appropriate size, function, operation and composition of the Board and its committees, and (5) oversee the evaluation of the Board and management.

Director Candidates

The Nominating and Corporate Governance Committee is responsible for managing the process for the nomination of new directors and considers nominations from its stockholders made pursuant to Section 1.3 of our Fifth Amended and Restated By-Laws (the “Bylaws”). The Nominating and Corporate Governance Committee may identify potential candidates for first-time nomination as a director using a variety of sources, including recommendations from current Board members, our management, stockholders or contacts in communities served by Harte Hanks, or by conducting a formal search using an outside search firm selected and engaged by the Nominating and Corporate Governance Committee.

Following the identification of a potential director nominee, the Nominating and Corporate Governance Committee commences an inquiry to obtain sufficient information on the background of such potential new director nominee. Included in this inquiry is an initial review of the candidate with respect to whether the individual would be considered independent under all applicable rules and whether the individual would meet any additional requirements imposed by law or regulation on the members of the Audit and Compensation Committee. The Nominating and Corporate Governance Committee evaluates candidates for director nominees in the context of the current composition of the Board, taking into account all factors it considers appropriate, including independence, diversity, age, skills, background and experience, financial acumen, availability of service to Harte Hanks, tenure of incumbent directors on the Board and the Board’s anticipated needs. Candidates should also have the skills and fortitude to assess and challenge the current status quo and recommend alternative solutions; in the case of independent directors, the independence necessary to make an unbiased evaluation of management performance and effectively carry out oversight responsibilities; an awareness of both the business and social environment in which the Company operates; and a sense of urgency and spirit of cooperation that will enable them to interact with other Board members in directing the future and profitable growth of the Company. The Nominating and Corporate Governance Committee has determined that it is desirable for the Board to have variety in perspectives, professional experiences, educational background, skills, race, gender and age, and considers issues of diversity and background in determining the appropriate composition of the Board and identifying director nominees. However, the Company does not have a formal policy concerning diversity considerations, nor does the Company have any formal means of assessing the efficacy of its diversity considerations,considerations. however, weWe are committed to inclusiveness and as such, when searching for director nominees, the Nominating and Corporate Governance Committee endeavors to include highly qualified diverse candidates in the pool from which nominees are chosen.

The Nominating and Corporate Governance Committee will consider potential nominees recommended by our stockholders taking into account the same characteristics considered for all other potential nominees. Stockholders may recommend candidates by writing to the Nominating and Corporate Governance Committee at the attention of our Secretary at Harte Hanks, Inc., 21 Executive Drive, Suite 103,303, Chelmsford, MA 01824. Our Bylaws provide additional procedures and requirements for stockholders wishing to nominate a director for election as part of the official business to be conducted at an annual stockholders meeting, as described further under “Submission of Stockholder Proposals for 20232024 Annual Meeting” and in our Bylaws. Stockholders wishing to submit nomination recommendations to the Nominating and Corporate Governance Committee should review Section 1.3 of our Bylaws in their entirety as the director nomination process described herein is incomplete.

Assuming a satisfactory conclusion to the Nominating and Corporate Governance Committee’s review and evaluation process, the Nominating and Corporate Governance Committee presents the candidate’s name to the Board for nomination for election as a director and, if applicable, inclusion in our proxy statement.

Board Meetings and Attendance

The Board held eleventen meetings and acted by unanimous written consent nine times during the fiscal year ended December 31, 2021.2022. In addition, the Audit Committee held fivefour meetings, the Compensation Committee held fourtwo meetings and the Nominating and Corporate Governance Committee held one meeting during the fiscal year ended December 31, 2021.2022. Although the Company does not have a formal policy regarding director attendance at the annual meeting of stockholders, all directors are encouraged to attend. All directors who served on the Board during the fiscal year ended December 31, 20212022 attended at least 75% of the Board and applicable committee meetings held.

Board Leadership Structure and Self-Evaluation

The Board believes that there is no single organizational model that would be most effective in all circumstances.  Our Corporate Governance Principles currently provide the roles of Chairman of the Board and CEO may be filled by the same or different individuals, which gives the Board the flexibility to determine whether these roles should be combined or separated based on the Company’s circumstances and needs at any given time. The Nominating and Corporate Governance Committee regularly evaluates whether to combine or separate the roles of the principal executive officer and Chairman, especially in connection with changes in leadership.

Prior toIn April 2021, the Board evaluated its leadership structure and Nominating and Corporate Governance Committee determined that the most effective leadership structure at that time was to have Mr. Benett, the Company’s then CEO, serve as both Chairman of the Board and CEO with an independent Director serving as the Lead Independent Director. Mr. Behrens served as the Board’s Lead Independent Director until April 2021. The Lead Independent Director, supported by the chairs of the independent committees of the Board, was responsible for assessing the performance of the Chairman and Chief Executive Officer and protecting against potential management conflicts. 

In April 2021, the Board re-examined its leadership structure and determined at that time that the appropriate structure was to have separate individuals serve as CEO and Chairman of the Board.  In connection with this decision, Mr. John H. Griffin, Jr. was elected Chairman of the Board.Board in April 2021, and has served in such capacity since that time.  The Board believedre-evaluated this decision in April 2022 and determined not to change its leadership structure. Separating these positions allows the Chief Executive Officer to focus on the full-time job of running the Company’s business, while allowing the Chairman to lead the Board in its fundamental role of providing advice to, and independent oversight of management.  The Board also believes that at that time, separating the Chairman and Chief Executive Officer positions providedprovides enhanced independent leadership and oversight for the Company, needed.  Upon Mr. Benett’s resignation as CEO, Mr. Linscott was promoted from Chief Operating Officer to CEO ofmanagement, and the Company and was named by the Board to serve as a Director of the Company. The Board determined that it remained in its best interests to maintain its then current leadership structure.Board.  As of the 2023 annual meeting date, Mr. Griffin continues to serve as the Chairman of the Board.     

OurOn an annual basis, the Board conducts an annualinformal evaluation in order to determine whether it and its committees are functioning effectively. As part of this annual self-evaluation, the Board evaluatesreviews whether the current leadership structure continues to be optimalprovide the best representation for Harte Hanksthe Company, and for its stockholders. Our corporate governance principles provide the flexibility for our Board to modify or continue our current leadership structure in the future, as it deems appropriate, in light of the results of evaluations or on-going business needs.  As a result of the appointment of Mr. Griffin as Chairman, the Company no longer has a Lead Independent Director.

Executive Sessions

Our Corporate Governance Principles provide that the non-management members of the Board will hold regular executive sessions in connection with regular Board meetings to consider issues that they may determine from time to time without the presence of any member of management. If the Chairman of the Board is not a member of management, the Chairman will chair each such session and report any material issues to the full Board. If the Chairman is a member of management, the Lead Independent Director serves as the chairman of the executive sessions.  In 2021,2022, these sessions were presided over by our Lead Independent Director through April 2021, and since the appointment of Mr. Griffin as Chairman he has presided over the sessions.of our Board.  If the non-management directors include directors who are not “independent” under applicable SEC rules, then the independent directors will hold an executive session at least once a year. The Chairman of the Board, if an independent director, chairs each such session and reports any material issues to the full Board. If the Chairman is not an independent director, the Lead Independent Director serves as the chairman of such sessions.  We believe having a substantial majority of independent, experienced directors comprisingon our Board benefits the Company and its stockholders by providing strong oversight and advice on the issues facing the Company.

Risk Oversight

Our Board is responsible for overseeing the risk management process. The Board focuses on our general risk management strategy and the most significant risks we face and ensures that management implements appropriate risk mitigation strategies. The Board is also apprised of particular risk management matters in connection with its general oversight and review of corporate matters.

In performing the risk management process, the Board reviews with management (1) our policies with respect to risk assessment and management of risks that may be material to us, (2) our system of disclosure controls and procedures and system of internal controls over financial reporting, and (3) our compliance with legal and regulatory requirements. The Board also reviewsdiscusses major legislative and regulatory developments that could materially impact our contingent liabilities and risks. Our Board committees also consider and address risk as they perform their respective committee responsibilities. For example, our Compensation Committee evaluates the risks associated with our compensation plans and policies, and our Audit Committee monitors risks relating to our financial controls and reporting. All committees report to the full Board as appropriate, including when a matter rises to the level of a material or enterprise level risk. The leadership structure of our Board described above under the section heading “Board Leadership Structure” ensures that management is properly overseen by independent directors.

Management is responsible for day-to-day risk management. Our finance, treasury, general counsel and internal audit functions serve as the primary monitoring and testing groups for company-wide policies and procedures and manage the day-to-day oversight of the risk management strategy for our ongoing business. This oversight includes identifying, evaluating and addressing potential risks that may exist at the enterprise, strategic, financial and operational levels, as well as compliance and reporting.

In AprilSince 2021, recognizingin recognition of the unique and evolving risks posed by cybersecurity and data protection, the Board determined to delegate to the Audit Committee the responsibility of overseeing risks related to cybersecurity, data protection (including confidential, proprietary and personal information, reputation and goodwill in all forms) and other similar risks. The Audit Committee is also responsible for overseeing and assisting in the establishment of policies and procedures to mitigate such risks. For instance, the Company maintains a global set of security policies and standards and regularly evaluates response readiness, disaster recovery or business continuity considerations. In addition, all employees receive annual cybersecurity and phishing training.  The Audit Committee Charter was amended to update the committee’s scope of responsibility to include overseeing such risks.

We believe the division of risk management responsibilities described above is an effective approach for addressing the risks facing the Company and that our Board leadership structure supports this approach.

Stockholder Communications with the Board of Directors

Stockholders may send communications to our Board, including any individual director or the directors as a group, by mailing such communications to Harte Hanks, Inc., Attn: Corporate Secretary, 21 Executive Drive, Suite 103,303, Chelmsford, MA 01824.  Such correspondence shall be addressed to the Board or any individual director by either name or title.

All communications received as set forth in the preceding paragraph will be opened by our Corporate Secretary or the secretary’s designee for the sole purpose of determining whether the contents represent a message to our directors. Any contents that are not in the nature of advertising, promotions of a product or service, or patently offensive material will be forwarded promptly to the addressee. In the case of communications to our Board or any individual director, our Corporate Secretary will make sufficient copies of the contents to send to each director to which the envelope is addressed. 

Director Attendance at Annual Meetings

Although we do not have a formal policy regarding director attendance at the annual meeting of stockholders, all directors are encouraged to attend.  All directors serving on the Board during the fiscal year ended 20212022 attended the 20212022 annual meeting of stockholders, and all current directors plan to virtually attend the 20222023 Annual Meeting.

Code of Business Conduct and Ethics

We have established a corporate compliance program as part of our commitment to responsible business practices in all of the communities in which we operate. The Board has adopted a Business Conduct Policy that applies to all of our directors, officers and employees, which promotes the fair, ethical, honest and lawful conduct in our business relationships with employees, customers, suppliers, competitors, government representatives, and all other business associates. In addition, we have adopted a Code of Ethics applicable to our Chief Executive Officer and all of our senior financial officers. The Business Conduct Policy and Code of Ethics Policy form the foundation of a compliance program that includes policies and procedures covering a variety of specific areas of professional conduct, including compliance with laws, conflicts of interest, confidentiality, public corporate disclosures, insider trading, trade practices, protection and proper use of company assets, intellectual property, financial accounting, employment practices, health, safety and environment, and political contributions and payments. The Business Conduct Policy forbids employees and directors from engaging in hedging activities with respect to our securities.

Both our Business Conduct Policy and our Code of Ethics Policy are available on our website at www.hartehanks.com, under the “Corporate Governance”“Governance” subsection of our “Investors”“Investor Relations” section. In accordance with NASDAQ and SEC rules, we intend to disclose on our website any future amendments to our Code of Ethics, or waivers from our Code of Ethics for our Chief Executive Officer or Chief Financial Officer.

Hedging Policy

The Company’s Business Conduct Policy forbids employees and directors from engaging in hedging activities or similar arrangements with respect to our securities. As of the date of this proxy statement, management of the Company is not aware of any hedging activities by Company insiders involving the Company’s securities.

Certain Relationships and Related Transactions, and Director Independence

Related Party Transactions

Our Board reviews related party transactions for potential conflict of interest issues and has adopted certain policies and procedures relating to their review, approval or ratification of any transaction in which the Company is a participant and that is required to be reported by the SEC’s rules and regulations regarding transactions with related persons. As set forth in the Nominating and Corporate Governance Committee’s charter, except for matters delegated by the Board to the Audit Committee, all proposed related transactions and conflicts of interest should be presented to the Nominating and Corporate Governance Committee for its consideration. If required by law, SEC regulations or any other applicable rule or regulations, such transactions must obtain Nominating and Corporate Governance Committee approval. In reviewing any such transactions and potential transactions, the Nominating and Corporate Governance Committee may take into account a variety of factors that it deems appropriate, which may include, for example, whether the transaction is on terms comparable to those that could be obtained in arm’s length dealings with an unrelated third party, the value and materiality of such transaction, any affiliate transaction restrictions that may be included in our debt agreements, any impact on the Board’s evaluation of a non-employee director’s independence or on such director’s eligibility to serve on one of the Board’s committees and any required public disclosures by Harte Hanks.

Director Independence

Our common stock is listed on the NASDAQ Global Market.  As required under the listing standards of NASDAQ, a majority of the members of the Board must qualify as “independent” as affirmatively determined by the Board. Our Board has affirmatively determined that the following three (3) directors are independent within the meaning of the applicable NASDAQ listing standards and the Company’s corporate governance principles: Ms. Combes and Messrs. Griffin and Radoff.  

As part of the Board’s review of the independence of Board members, questionnaires are used on an annual basis (or when a new director is added) to gather input to assist the Nominating and Corporate Governance Committee and the Board in their determinations of the independence of the non-employee directors. Based on the foregoing and on such other due consideration and diligence as it deemed appropriate, the Nominating and Corporate Governance Committee presented its 20212022 findings to the Board on the independence of each of its non-employee directors, in each case in accordance with the Company'sCompany’s corporate governance guidelines, NASDAQ rules and applicable federal securities laws. The Board determined that, other than in their capacity as directors, none of Ms. Combes and Messrs. Griffin and Radoff had a material relationship with Harte Hanks, either directly or as a partner, stockholder or officer of an organization that has a relationship with Harte Hanks. The Board further determined that (i) each of Ms. Combes and Messrs. Griffin and Radoff are otherwise independent under rules that would be applicable to companies listed on NASDAQ, the Audit Committee, the Compensation Committee and the Nominating and Corporate Governance Committee and (ii) each of Ms. Combes and Messrs. Griffin and Radoff satisfied the additional audit committee independence standards under Rule 10A-3 of the SEC.

When assessing the materiality of a director’s relationship with us, if any, the Board considers all known relevant facts and circumstances, not merely from the director’s standpoint, but from that of the persons or organizations with which the director has an affiliation, the frequency or regularity of the services, whether the services are being carried out at arm’s length in the ordinary course of business and whether the services are being provided substantially on the same terms to us as those prevailing at the time from unrelated parties for comparable transactions. Material relationships can include commercial, banking, industrial, consulting, legal, accounting, charitable and familial relationships.

Indemnification of Officers and Directors

Our Certificate of Incorporation and Bylaws require us to indemnify our officers and directors to the fullest extent permitted by the Delaware General Corporation Law. These documents also contain provisions that provide for the indemnification of our directors for third party actions and actions by or in the right of Harte Hanks that mirror Section 145 of the Delaware General Corporation Law.

In December 2019, the Company entered into an indemnification agreement with each of our directors and executive officers (the “Indemnification Agreements”). The Board determined that it is in the best interests of the Company and its stockholders to enter into Indemnification Agreements in order to attract and retain highly competent individuals to serve, or continue to serve, as directors and executive officers. The Indemnification Agreements, among other things, subject to certain exceptions, require the Company to indemnify, and advance expenses to, each director and executive officer to the fullest extent permitted by the laws of the State of Delaware, including indemnification of expenses such as attorneys' fees, judgments, fines and settlement amounts incurred by the director or executive officer in any action or proceeding, including any action or proceeding by or in right of the Company, arising out of such person'sperson’s services as a director or executive officer.

Our Certificate of Incorporation also states that the Company has the power to purchase and maintain insurance, at its expense, to protect itself and any such director, officer, employee or agent of the Company or another corporation, partnership, joint venture, trust or other enterprise against such expense, liability or loss, whether or not we would have the power to indemnify such person against such expense, liability or loss under the Delaware General Corporation Law. We also have and intend to maintain director and officer liability insurance, if available on reasonable terms.

Insofar as indemnification for liabilities arising under the Securities Act, may be permitted to directors, officers or persons controlling us under the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

SECURITY OWNERSHIP OF MANAGEMENT AND PRINCIPAL STOCKHOLDERS

The following table sets forth the number of shares of our common stock beneficially owned by (1) our “named executive officers” included in the Summary Compensation Table below, (2) each current Harte Hanks director, (3) each person known by Harte Hanks to beneficially own more than 5% of the outstanding shares of our common stock, and (4) all current Harte Hanks directors and executive officers as a group. Except as otherwise noted below, (a) the persons named in the table have sole voting and investment power with respect to all shares beneficially owned by them, and (b) ownership is as of March 31, 2022,2023, when 7,020,2037,485,170 shares of our common stock were outstanding.

EXECUTIVE COMPENSATION

Our Compensation Committee reviews our executive officers’ overall compensation packages on an annual basis or more frequently as it deems warranted. We provide our executives with an annual base salary as a fixed, stable form of compensation and an annual cash bonus opportunity to create additional performance incentives. We also from time to time grant our executives equity-based awards to provide an additional incentive to grow our business and further link their interests with those of our stockholders. We have also historically allowed our executive officers to elect to receive up to 30% of annual incentive plan (“AIP”) payments in the form of restricted stock vesting on the first anniversary of the grant, with executive officers receiving 125% of the value of the forgone cash bonus in shares of restricted stock.

As a “smaller reporting company” (as such term is defined under applicable securities laws), we are required to disclose the compensation for our principal executive officer and our one otherthe next two most highly compensated executive officer serving as of the last day of the applicable fiscal year. In certain cases, disclosure may also be required for individuals who served as executive officers for a portion of the fiscal year but were not serving as executive officers at the end of the year. As a smaller reporting company, we are not required to include a compensation discussion and analysis in this proxy statement.

For the fiscal year ended December 31, 2021,2022, the named executive officers were:

Mr. Benett stepped down as Chief Executive Officer of the Company, effective as of June 22, 2021.  On June 23, 2021, Mr. Linscott, who served as Chief Operating Officer of the Company since January 2020, was appointed as Chief Executive Officer. 

The table below sets forthpresents the annual compensation for services rendered duringpaid to our named executive officers in respect of fiscal 2021years 2022 and to the extent applicable under SEC rules, fiscal 2020.2021:

Summary Compensation Table - Fiscal 20202022 and 2021

All Other Compensation

Stock Ownership Guidelines & Hedging Policies 

The Committee believes that stock ownership requirements encourage officers to maintain a significant financial stake in our company, thus reinforcing the alignment of their interests with those of our stockholders. Consistent with this philosophy, we have stock ownership guidelines that require all officers to acquire and hold significant levels of our common stock. Under these guidelines (revised in February 2018), a corporate officer must reach the minimum required level of common stock ownership no later than five years from commencement of employment (and sooner in some cases). Officers promoted to a level with a higher minimum equity ownership level have three years to reach the higher level of ownership. The target ownership level (relative to base annual salary) is 500% for the CEO, 200% for executive vice presidents and senior vice presidents, and 100% for vice presidents.

The recent stock ownership of our executive officers is reflected in the section above entitled “Security Ownership of Management and Principal Stockholders.” For purposes of measuring compliance with these stock ownership guidelines, all common stock (including restricted stock units) owned by an executive officer is included. Compliance with the target ownership level is measured by the greater of (i) the aggregate of the consideration paid for qualifying shares (but for unvested awards, the grant date value), or (ii) the result of multiplying the number of qualifying shares by the average closing price of the Company’s common stock over the trailing 12 months. Neither options nor performance awards are included in the compliance calculation.

If an officer has not previously met the minimum equity ownership level, the officer must retain half of the “net shares” related to any option exercise or vesting of restricted stock or performance awards. “Net shares” means the number of shares remaining after the sale of shares to cover the exercise price of options and the sale of shares sufficient to pay taxes related to the exercise of options or vesting of restricted stock or performance awards. If an executive officer has previously met the applicable target ownership level, then so long as such officer maintains the number of shares needed for compliance at that time, the officer will be deemed to be in compliance notwithstanding any stock price fluctuations.

The ownership guidelines, and compliance by officers with the guidelines, are reviewed annually by the Committee. Any remedial action for failure to comply with the stock ownership guidelines is to be determined by the Committee on a case-by-case basis. While our executive officers are endeavoring to meet these ownership thresholds, none of our officersMr. Linscott and Ms. Kearnes have met the holding requirements under the guidelines.  Mr. Linscott has through 2024, and Ms. Kearnes has through 2022, and Mr. Wyman has through 2024 to meet the holding requirements.

As part of our Business Conduct Policy, we have adopted an insider trading policy that, among other things, forbids officers from engaging in hedging activities with respect to our securities.

Clawback Policy

In February 2018, the Board adopted a clawback policy. This policy formalized the Company’s long-standing practice of including in award agreements (or other applicable documents which provide the terms of incentive compensation) a provision that makes such incentive compensation subject to forfeiture, reimbursement and/or recoupment in the event the Company is required to prepare an accounting restatement of its financial statements due to the Company’s material noncompliance with any financial reporting requirement under the federal securities laws. Under the clawback policy, incentive compensation includes the following (provided that such compensation is granted, earned or vested based wholly or in part on the attainment of a financial reporting measure): annual bonuses/incentive plan awards and other short-and long-term cash incentives; stock options; stock appreciation rights; restricted stock awards and/or units; performance unit awards; and any other compensation designated as “Incentive compensation” by the Committee at the time such compensation is made, granted or awarded.

Outstanding Equity Awards at Year End

The following table sets forth information regarding outstanding equity awards held at the end of 2022 by our named executive officers. These equity awards were issued pursuant to our 2020 Plan and 2013 Plan.

		Option Awards														Stock Awards
Name		Number of Securities Underlying Unexercised Options (#) Exercisable				Number of Securities Underlying Unexercised Options (#) Unexercisable				Option Exercise Price ($)			Option Expiration Date			Number of Shares or Units of Stock That Have Not Vested (#)					Market Value of Shares or Units of Stock That Have Not Vested ($)				Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)					Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) (1) (2)
(a)		(b)				(c)				(d)			(e)			(f)					(g)				(h)					(i)
Brian Linscott			—				—				—		—				73,334		(6)		$	857,274				85,000		(3)		$	993,650
Laurilee Kearnes			400				—			$	77.2		2/5/2023				45,001		(7)		$	526,062				20,000		(4)		$	233,800
			297				—			$	82.3		4/15/2024
			854				—			$	76.8		4/15/2025
Robert Wyman			300				—			$	77.2		2/5/2023				21,834		(8)			255,239				12,000		(5)		$	140,280
			297				—			$	82.3		4/15/2024

(1)	Based upon the closing market price of our common stock as of December 31, 2022 ($11.69), as reported on the NASDAQ.

(2)	In 2019, 2021 and 2022, our Compensation Committee awarded our executives performance-based stock units which are payable, if earned, in shares of common stock or cash. The payout levels range from 0% to a maximum of 100% of the performance units granted.

(3)

25,000 of these performance stock units generally vest if, following a period of at least one full year from June 24, 2021, certain share price target ($18.00 for 30 consecutive days) is met.  60,000 of these performance stock units generally vest if, following a period of at least one full year from May 26, 2022, certain share price targets ($11.00 for 90 consecutive days for 18,000 shares, $13.00 for 90 consecutive days for 18,000 shares, and $15.00 for 90 consecutive days for 24,000 shares) are met.

(4)

20,000 of these performance stock units generally vest if, following a period of at least one full year from May 26, 2022, certain share price targets ($11.00 for 90 consecutive days for 6,000 shares, $13.00 for 90 consecutive days for 6,000 shares, and $15.00 for 90 consecutive days for 8,000 shares) are met.

(5)	12,000 of these performance stock units generally vest if, following a period of at least one full year from May 26, 2022, certain share price targets ($11.00 for 90 consecutive days for 3,600 shares, $13.00 for 90 consecutive days for 3,600 shares, and $15.00 for 90 consecutive days for 4,800 shares) are met.
(6)	25,000 of these restricted stock units are scheduled to vest on July 20, 2023, 16,667 of these restricted stock units are scheduled to vest on June 24, 2023 and 2024, respectively;15,000 of these restricted stock units generally vest in three equal annual installments on the first three anniversaries of May 26, 2022.
(7)	21,667 of these restricted stock units are scheduled to vest on August 8, 2023, 6,667 of these restricted stock units are scheduled to vest on August 6, 2023 and 2024, respectively; 10,000 of these restricted stock units generally vest in three equal annual installments on the first three anniversaries of May 26, 2022.
(8)	2,500 of these restricted stock units are scheduled to vest on August 8, 2023, 6,667 of these restricted stock units are scheduled to vest on August 6, 2023 and 2024, respectively; 6,000 of these restricted stock units generally vest in three equal annual installments on the first three anniversaries of May 26, 2022.

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Equity Compensation Plan Information at Year-End 20212022

 

The following table provides information as of December 31, 20212022 regarding total shares subject to outstanding stock options and rights and total additional shares available for issuance under Harte Hanks, Inc. 2020 Equity Incentive Plan (as amended, the “2020 Plan”).

 

Plan Category		(a) Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (1)		(b) Weighted Average Exercise Price of Outstanding Options, Warrants, and Rights (2)		(c) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)(3)		(a) Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (1)		(b) Weighted Average Exercise Price of Outstanding Options, Warrants, and Rights (2)		(c) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)(3)
Equity compensation plans approved by security holders		778,164		$80.21		1,748,140		670,844		$78.88		1,465,539

 

(1)	Consisting of outstanding options, restricted stock units and stock-denominated performance units.  If actual performance under the performance-based restricted stock units falls below the prescribed level for these awards, fewer shares would be issued.

(2)	The weighted-average exercise price does not take into account any shares issuable upon vesting of outstanding restricted stock or performance restricted stock units, which have no exercise price.

(3)

Represents shares available under our 2020 Plan; all shares remaining available for issuance under the 2013 Plan were rolled into 2020 Plan when the 2020 Plan was approved by stockholders.  Shares available for issuance under our 2020 Plan may be issued pursuant to stock options, restricted stock, performance restricted stock units, common stock and other awards that may be established pursuant to the 2020 Plan.  If actual performance under the performance-based restricted stock units falls below the prescribed level for these awards, fewer shares would be issued.

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Outstanding Equity Awards at Year End

The following table sets forth information regarding outstanding equity awards held at the end of 2021 by our named executive officers. These equity awards were issued pursuant to our 2020 Plan and 2013 Plan.

		Option Awards													Stock Awards
Name		Number of Securities Underlying Unexercised Options (#) Exercisable				Number of Securities Underlying Unexercised Options (#) Unexercisable				Option Exercise Price ($)			Option Expiration Date		Number of Shares or Units of Stock That Have Not Vested (#)					Market Value of Shares or Units of Stock That Have Not Vested ($)				Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)					Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) (1) (2)
(a)		(b)				(c)				(d)			(e)		(f)					(g)				(h)					(i)
Brian Linscott			—				—				—		—			100,000		(5)		$	760,000				75,000		(3)		$	570,000
Laurilee Kearnes			300				—			$	99.1		2/5/2022			67,719		(6)		$	514,664				13,158		(4)		$	100,001
			400				—			$	77.2		2/5/2023
			297				—			$	82.3		4/15/2024
			854				—			$	76.8		4/15/2025
Robert Wyman			300				—			$	77.2		2/5/2023			25,000					190,000				—					—
			297				—			$	82.3		4/15/2024

(1)	Based upon the closing market price of our common stock as of December 31, 2021 ($7.6), as reported on the NASDAQ.

(2)	In 2017, 2018 and 2019, our Compensation Committee awarded our executives performance-based stock units which are payable, if earned, in shares of common stock or cash. The payout levels range from 0% to a maximum of 100% of the performance units granted.

(3)	These performance stock units generally vest if, following a period of at least one full year from June 24, 2021, certain share price targets ($12.00 for 30 consecutive days for 50,000 shares, and $18.00 for 30 consecutive days for 25,000 shares) are met.

(4)	These performance stock units generally vest if, following a period of at least one full year from September 6, 2019, certain share price targets ($8.00 for 30 consecutive days) are met.

(5)	25,000 of these restricted stock units are scheduled to vest on March 20, 2022 and 2023.  25,000 of these restricted stock units are scheduled to vest on June 24, 2022 and 2023.
(6)	4,386 of these restricted stock units is scheduled to vest on September 6, 2022.  43,333 of these restricted stock units are scheduled to vest on August 8, 2022 and 2023.  20,000 of these restricted stock units generally vest in three equal annual installments on the first three anniversaries of Aug 6, 2021.

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Executive Employment and Severance Agreements

 

In 20212022 we had the following types of severance arrangements with our named executive officers, each addressing or intended to address different employment and/or termination circumstances:

 

•		our executive severance policy (the “Executive Severance Policy”);
•		our “change in control” severance agreement (the “CIC Agreements”); and
•		an employment agreement with Mr. Linscott, our Chief Executive Officer (“CEO Agreement”).

 

In January 2021,2022, the Board continued with its prior practice (established in 2019 and renewed in January 2020) that all severance agreements with executive officers, including each agreement made with individuals under the Executive Severance Policy, going forward, would be as determined by the Board in its discretion.

 

Executive Severance Policy

 

In January 2015, we adopted an Executive Severance Policy applicable to corporate officers and certain other executive employees designated by the Compensation Committee. The Executive Severance Policy applies only for named executive officers in circumstances when they do not have a specific agreement that determines their rights to severance. In 20212022 both Ms. Kearnes and Mr. Wyman were covered by the Executive Severance Policy. The Executive Severance Policy provides a participating executive whose employment is terminated without “cause,” (i) severance payments equal to such executive’s then-current base salary for the one-year severance period and (ii) subject to certain conditions, up to a year of contributions toward health care coverage. In exchange, executives are required to deliver a full release to the Company and adhere to non-competition and non-solicitation covenants. The Executive Severance Policy does not contain any provision regarding the acceleration of vesting for equity awards in the event of an executive’s termination. The Executive Severance Policy can be amended upon six months’ notice by the Compensation Committee, and it terminates immediately prior to a change of control of the Company.

 

CIC Agreements

 

The CIC Agreements are designed to allow us to attract and retain key talent by providing defined compensation in the event of a change in control. The payout levels and other terms of the CIC Agreements are based on the Compensation Committee’s review of publicly available market data regarding severance agreements and prior iterations of these agreements. Mr. Linscott, Mr. Wyman and Ms. Kearnes are each a party to a CIC Agreement with the Company. The CIC Agreements provide that if, after a change in control, an executive (i) is terminated other than for “cause” (as defined in the agreement), death or disability or (ii) elects to terminate the executive'sexecutive’s employment for “good reason,” then such executive is entitled to severance compensation (18 months for Mr. Linscott, and 12 months for Ms. Kearnes/ Mr. Wyman) and a cash payment sufficient to cover health insurance premiums for a defined period of time (12 months for Mr. Linscott, and 24 months for Ms. Kearnes and Mr. Wyman).  The amount of severance compensation is the sum of (A) the executive’s annual base salary in effect immediately prior to the change in control or termination date, whichever is larger, plus (B) the executive’s target-level bonus or incentive compensation as approved in the then existing management incentive plan.  

 

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Mr. Linscott'sLinscott’s Agreement

 

The CEO Agreement provides for the following severance payments and benefits upon a termination of Mr. Linscott’s employment by the Company without “cause” or his resignation for “good reason” (each as defined in the CEO Agreement): (i) 18 months of continued base salary and (ii) 12 months of continued health benefit coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 and (iii) accelerated vesting of a portion of the time-based restricted stock units granted to Mr. Linscott in connection with the Employment Agreement.

 

Separation Agreement with Mr. Bennett  

The Company entered into a release and separation agreement with Mr. Benett memorializing the terms of his separation of employment in June 2021 (the “Separation Agreement”). Pursuant to the Separation Agreement, Mr. Benett received the following severance payments and benefits: (i) $660,000, payable over 12 months, (ii) reimbursement for the employer portion of continuation coverage premiums under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) for 12 months following his separation date, and (iii) accelerated vesting of 50,000 unvested restricted stock units. Mr. Benett’s receipt of the foregoing payments and benefits was subject to his execution of an effective release of claims against the Company and certain of its affiliates. Under the Separation Agreement, Mr. Benett would be required to comply with certain non-disparagement, confidentiality, and cooperation obligations, as well as certain non-solicit and non-compete restrictions.

Annual Incentive Plan

 

We provide an annual incentive opportunity (an “AIP”) for named executive officers to achieve certain milestones within the Company and, where appropriate, to advance business line performance on a year-over-year basis. This annual short-term cash incentive opportunity provides an incentive for our executives to manage our businesses to achieve targeted financial results.  We paid the following amounts to our named executive officers under the 20212022 AIP, based on various financial performance and operational efficiency goals: $400,000$450,000 to Mr. Linscott, $250,000 to Ms. Kearnes and $30,000$78,000 for Mr. Wyman.

 

Equity Incentive Plan

 

From time to time, the Company grants equity incentive awards to our named executive officers and other selected employees. Prior to adoption of the 2020 Plan, such awards were granted under the 2013 Plan.  The 2020 Plan was approved by stockholders at the 2020 annual meeting of stockholders, and therefore no new awards will be granted under the 2013 Plan (although outstanding awards under the 2013 Plan will continue to be governed by the terms of the 2013 Plan).  The 2020 Plan is administered by our Board of Directors, or a committee thereof. Currently the plan is administered by the Compensation Committee. The administrator has authority to interpret the plan provisions and make all required determinations under the 2020 Plan (including making appropriate adjustments to reflect stock splits and similar events). Employees, directors and consultants of the Company and its subsidiaries are eligible for award grants under the 2020 Plan. Awards of stock options, stock appreciation rights, restricted stock, restricted stock units and other awards may be granted under the plan.

 

 

 

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PAY VERSUS PERFORMANCE

Pursuant to Section 953(a) of the Dodd-Frank Act and Item 402(v) of SEC Regulation S-K, we are providing the following information about the relationship between executive “compensation actually paid” (or “CAP”) to the Company’s principal executive officer (PEO) and non-PEO named executive officers (the Non-PEO NEOs), and certain aspects of the financial performance of the Company. For further information concerning our compensation philosophy and how we align executive compensation with our performance, please see our Compensation Discussion & Analysis.

Year		Summary Compensation table total for MR. Benett, former PEO (1)(2)				Summary Compensation table total for Mr. Linscott, PEO (1)(2)				Compensation actually paid to Mr. Benett, former PEO (1)(3)(4)				Compensation actually paid to Mr. Linscott, PEO (1)(3)(4)				Average Summary Compensation Table total for Non-PEO Named Executive Officers (2)(3)				Average compensation actually paid to Non-PEO Named Executive Officers (4)				Value of initial fixed $100 investment based on Total shareholder return (5)				Net income (thousands) (6)
2022		$	-			$	1,467,890			$	-			$	1,775,818			$	662,318			$	692,497			$	460.85			$	36,777
2021		$	580,208			$	1,615,537			$	333,208			$	1,474,787			$	535,261			$	646,449			$	294.57			$	14,971

(1)	During 2021, Mr. Andrew Benett served as PEO until June 23, 2021.  Brian Linscott succeeded Andrew Benett as PEO on June 23, 2021. During 2022, Mr. Linscott was our only PEO.

(2)

Amounts reported in these columns represent (i) the total compensation reported in the Summary Compensation Table (“SCT”) for the applicable year in the case of our PEOs, Messrs. Linscott and Benett, and (ii), average of the total compensation reported in the SCT for the applicable year for our Non-PEO NEOs reported for that applicable year.

(3)	Our Non-PEO NEOs for 2022 and 2021 are Laurilee Kearnes and Robert Wyman.
(4)	Amounts reported in these columns represent “compensation actually paid” as calculated in accordance with Item 402(v) of Regulation S-K. A reconciliation of the adjustments for our PEOs, Messrs. Linscott and Benett, and for the average of the Non-PEO NEOs is set forth in the Reconciliation of SCT to CAP Table below, which describes the adjustments, each of which is prescribed by the SEC rules, to calculate the CAP Amounts from SCT amounts.

(5)	Total Shareholder Return (TSR) is cumulative for the measurement periods beginning on December 31, 2020 and ending on December 31 of each of 2022 and 2021, respectively, calculated in accordance with Item 201(e) of Regulation S-K.

(6)	Amounts reported in this column represent “Net Income” for each applicable year as set forth in our Consolidated Statements of Comprehensive Income included in our Annual Report on Form 10-K for each of the applicable years.

Reconciliation of SCT to CAT Table

		2022								2021
		Linscott PEO				Average Non-PEO NEOs				Linscott PEO				Former PEO				Average Non-PEO NEOs
Total Compensation from SCT		$	1,467,890			$	662,318			$	1,615,537			$	580,208			$	535,261
Adjustment for stock awards
(Minus) SCT amounts for stock awards			(592,890	)			(191,734	)			(741,500	)			—				(125,600	)
Addition: Fair value at year end of awards granted during the covered fiscal year that are outstanding and unvested at year end			853,110				274,256				902,500				—				152,000
Addition: Year over Year change in Fair Value as of the Last day of the covered year of outstanding and unvested equity awards granted in prior years			348,086				103,958				242,500				—				161,662
Addition: Vesting date fair value of equity awards granted and vested in the covered year			138,151				—				322,500				—				—
Addition: Year over Year change in Fair value as of the vesting date of equity awards granted in prior years that vested during the covered year			414,581				117,956				35,750				165,500				75,127
(Minus): Fair value at the end of the prior year of equity awards that failed to meet vesting conditions in the covered year			—				—				—				(412,500	)			—
Compensation actually paid		$	1,775,818			$	692,497			$	1,474,787			$	333,208			$	646,449

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Relationship Between “Compensation Actually Paid” and Certain Performance Measures shown in the Table

Relationship between CAP and TSR

The graphs below illustrate the relationship between CAP for the PEO and Non-PEO NEOs and our TSR.

Relationship between CAP and Net Income

The graph below reflects the relationship between the PEO and Average Non-PEO NEOs CAP and our Net Income.

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DIRECTOR COMPENSATION

 

Director Compensation

 

Under our director compensation program in 2021,2022, we provided compensation to our directors who are not employed by us or any of our subsidiaries (referred to herein as “non-employee directors”) as follows:

 

Annual Retainer for General Director	$60,000
Annual Retainer for Chairman of the Board	$90,000
Annual Equity Awards	13,67812,605 Shares which equals to $90,000
Annual Committee Chair Fee	$5,5007,500 to $20,000$30,000

 

Each independent director was able to elect, annually or in connection with such director’s appointment to the Board, to receive all or a portion of such director’s cash compensation otherwise payable for such director’s services in shares of the Company’s common stock. These shares of common stock are granted as soon as administratively practicable following the end of each of the Company’s fiscal quarters. The number of shares delivered is based on the market value of one share of the Company’s common stock on the NASDAQ as of the last day of the immediately preceding quarter, in accordance with the 2020 Plan.

 

In 2019, the annual cash retainer was increased to $60,000 and the annual equity retainer was increased to $90,000, to compensate the directors for their increased time and efforts. In December of 2019, the Board determined to maintain the annual retainers at 2019 levels. During 2020, the Board decided to reduce the annual equity retainer to 18,000 shares of the Company's common stock.  In addition, in July of 2020 the Board determined to eliminate the separate committee retainer fees (other than a stipend for the Chair of each Committee) and ceased paying such fees on July 22, 2020. Non-employee directors only received their annual retainer fee after that date.  This practice continued in 2021.

In 2020, Mr. Benett, our former Chief Executive Officer2022 and also a director of the Board, received a cash retainer fee of $120,000 in respect of his role as a director, which amount is included in the Summary Compensation Table.2021.

 

20212022 Director Compensation for Non-Employee Directors

 

The following table sets forth the total compensation paid to our non-employee directors for their service on our board of directors during fiscal 2021:2022:

 

Name		Fees Earned or Paid in Cash($) (1)		Option Awards ($)		Stock Awards ($) (2)		Total ($)		Fees Earned or Paid in Cash($) (1)		Option Awards ($)		Stock Awards ($) (2)		Total ($)
John H. Griffin Jr.		75,625		—		90,000		165,625		127,500		—		90,000		217,500
David L. Copeland		60,000		—		90,000		150,000		60,000		—		90,000		150,000
Genni Combes		45,753		—		90,000		135,753		80,000		—		90,000		170,000
Bradley Radoff		43,669		—		90,000		133,669		75,000		—		90,000		165,000
Alfred V. Tobia Jr. (3)		47,500		—		90,000		137,500
Evan Behrens (4)		28,833		—		—		28,833

 

(1)	This Column includes annual Board fees, and the committee retainers directors received in cash.
(2)	Each of the non-employee directors was granted restricted stock units in 20212022 with a grant date fair value of $90,000 (rounded down to the nearest whole share), computed in accordance with FASB ASC Topic 718. For a discussion of valuation assumptions, see note G of our audited financial statements for the fiscal year ended December 31, 20212022  included in our Form 10-K for the same period. Restricted stock units granted in 20212022 provide for vesting on the first anniversary of the date of grant.
(3)	Mr. Tobia resigned from the Board in September 2021.
(4)	Mr. Behrens retired from the Board after June 23, 2021.

 

Director Stock Ownership Guidelines & Hedging Policy

 

Under our Corporate Governance Principles and Stock Ownership Guidelines, non-employee directors are expected to hold five (5) times the annual cash retainer amount in company stock (an increase from three (3) times the annual cash retainer amount). Employee directors are also subject to the Stock Ownership Guidelines, but as applicable to their management level rather than directorship. Currently, each of our directors is in compliance with/endeavoring to work toward compliance with this policy.  As part of our Business Conduct Policy, we have adopted an insider trading policy that, among other things, forbids directors from engaging in hedging activities with respect to our securities.

 

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PROPOSAL I

 

ELECTION OF DIRECTORS

 

Election of Directors

 

We currently have four (4) non-executive directors, and one (1) member of management, our CEO, director serving on our Board, and are nominating each of our five (5) sitting directors for re-election. The directors elected at the Annual Meeting will be elected to serve a term ending at our 20232024 annual meeting of stockholders (and, in each case foregoing, until their successors are duly elected and qualified, or their earlier death, resignation or removal).

 

Directors will be elected with the affirmative vote of a majority of the votes cast in favor of his or her election at the Annual Meeting virtually or by proxy (i.e., the number of votes “for” such director’s election constitutes more than the number of votes “withheld” with respect to such director’s election). Pursuant to our Bylaws, each nominee has submitted an irrevocable resignation as a director, which resignation will become effective upon (1) that person not receiving a majority of the votes cast in favor of his or her election in an uncontested election and (2) acceptance by the Board of that resignation in accordance with the policies and procedures adopted by the Board for such purpose.

 

The nominees for directors are  (1) Brian Linscott, (2) Genni Combes, (3) David L. Copeland, (4) John H. Griffin, Jr. and (5) Bradley Radoff, each of whom is currently serving as a director. Each nominee has indicated his or her willingness to serve as a director if elected. If, however, a nominee is unable to serve, the shares represented by all valid proxies will be voted for the election of such substitute as the Board may recommend, or the Board may reduce the number of directors to eliminate the vacancy, and if any director is unable to serve his full term, the Board may reduce the size of the Board or designate a substitute to fill the vacancy.

 

Information with respect to the nominees is set forth in the section of this proxy statement entitled “Directors and Executive Officers.” Our Board believes each of the nominees possess the necessary experience, qualifications, attributes and skills to provide significant value to Harte Hanks.

 

The accompanying proxy card will not be voted for anyone other than the Board’s nominees or designated substitutes. The persons named in the accompanying proxy card will vote to elect the Board’s nominees unless, by marking the appropriate space on the proxy card, the stockholder instructs that he, she or it withholds authority from the proxy holder to vote.

 

Board Recommendation on Proposal

 

OUR BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE FOR THE ELECTION OF ALL OF OUR DIRECTOR NOMINEES NAMED ON THE ENCLOSED PROXY CARD.

 

The management proxy holders will vote all duly submitted proxies FOR election of all of our director nominees named on the enclosed proxy card unless duly instructed otherwise.

 

 

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PROPOSAL II

 

ADVISORY APPROVAL OF COMPENSATION OF NAMED EXECUTIVE OFFICERS (SAY ON PAY)

 

Say-on-Pay

 

Pursuant to the SEC proxy rules and the Dodd-Frank Wall Street Reform and Consumer Protection Act, we are providing our stockholders with an advisory (non-binding) vote to approve the compensation of our named executive officers, as disclosed pursuant to the compensation disclosure rules of the SEC, including the Summary Compensation Table and related tables and disclosure (commonly referred to as “say-on-pay”). Our Board recognizes the interest our investors have in the compensation of our executives, and how our company manages compensation in light of business needs and market expectations. Specifically, we are seeking a vote on the following resolution:

 

RESOLVED, that the stockholders of Harte Hanks, Inc. approve, on an advisory basis, the compensation paid to its named executive officers, as disclosed pursuant to Item 402 of Regulation S-K.

 

We have adopted a policy of holding say-on-pay votes on an annual basis.  We have adopted an executive compensation philosophy designed to provide strong alignment between executive pay and performance, and to focus executives on making decisions that enhance our stockholder value in both the short and long term. Executives are compensated in a manner consistent with our strategy, competitive practices, stockholder interest alignment, and the Compensation Committee’s view of evolving compensation governance standards. Stockholders are encouraged to read the compensation tables and the related narrative disclosure in this proxy statement. The Compensation Committee monitors our compensation policies and decisions to ensure that they are focused on pay-for-performance principles and are strongly aligned with the long-term interests of our stockholders. Compensation of our named executive officers is designed to enable us to attract and retain talented and experienced senior executives to lead the Company successfully in a challenging and competitive environment. The Compensation Committee has designed our executive compensation and benefit programs to attract, motivate and retain a talented management team and to appropriately reward individual contributions to the achievement of our strategic goals.  We believe that shareholders are generally supportive of our executive compensation programs, as evidenced by the fact that our executive compensation program was approved by 99.95% of the votes cast at last year’s say on pay vote.

 

The Board, like the Company’s executive officers, is cognizant of the prior declines faced by the Company. Nevertheless, the Company operates in an environment where there is competition for talent, and when executive officers take on additional responsibilities as they navigate a turn-around, providing meaningful compensation that serves to reward their efforts, if successful, is essential. The Compensation Committee believes the compensation for our executive officers is competitive and that our compensation practices have enabled Harte Hanks to attract and retain the executive talent needed for the turn-around the Company is engaged in. The Compensation Committee also finds the named executive officers’ total compensation to be fair and reasonable for our circumstances, and consistent with the Company’s executive compensation philosophy.

 

Board Recommendation on Proposal

 

OUR Board unanimously recommends a voteBOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE FOR the approval (on a non-binding advisory basis) of our named executive officer compensation disclosed in this proxy statement pursuant to the resolution above.THE APPROVAL (ON A NON-BINDING ADVISORY BASIS) OF OUR NAMED EXECUTIVE OFFICER COMPENSATION DISCLOSED IN THIS PROXY STATEMENT PURSUANT TO THE RESOLUTION ABOVE.

 

The management proxy holders will vote all duly submitted proxies FORthe approval (on a non-binding advisory basis) of our named executive officer compensation disclosed in this proxy statement pursuant to the resolution above unless duly instructed otherwise.

 

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PROPOSAL III

ADVISORY VOTE ON THE FREQUENCY OF FUTURE ADVISORY VOTES TO APPROVE THE COMPENSATION OF NAMED EXECUTIVE OFFICERS

Pursuant to Section 14A of the Exchange Act, we are asking stockholders to vote on how frequently the Company should hold future advisory votes to approve the executive compensation of our NEOs. Stockholders may indicate whether they would prefer to have future advisory votes to approve the compensation of our NEOs every one year, every two years, or every three years. This vote is not binding on the Board or the Compensation Committee. 

Our stockholders voted on a similar proposal in 2017 with the majority voting to hold advisory votes to approve executive compensation every year. After careful consideration, the Board continues to believe that holding an advisory vote to approve executive compensation every year is most appropriate for the Company at this time and recommends that stockholders vote to hold such future advisory votes every year. Compensation decisions and disclosures are made on an annual basis. The Board values the feedback of the Company’s stockholders and recognizes that holding an annual advisory vote provides the Company with direct and current feedback on our compensation policies and practices. An annual advisory vote also is consistent with our practice of annual elections for all directors and annual ratification of our independent registered public accounting firm.

Although this advisory vote on the frequency of such future votes is not binding on the Board, the Board and the Compensation Committee value your opinion and will consider the outcome of the vote in establishing the frequency with which advisory votes to approve executive compensation will be held in the future. Notwithstanding the Board’s recommendation and the outcome of the stockholder vote, the Board may in the future decide to conduct advisory votes to approve our executive compensation on a more or less frequent basis and may vary its practice based on factors such as discussions with stockholders and the adoption of material changes to compensation programs.

You may specify one of four choices for this proposal on the proxy card: 1 Year, 2 Years, 3 Years, or abstain. You are not voting to approve or disapprove the Board’s recommendation.

Board Recommendation on Proposal

OUR BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE FOR EVERY 1 YEAR FOR THE ADVISORY VOTE ON THE FREQUENCY OF FUTURE ADVISORY VOTES TO APPROVE THE COMPENSATION OF NAMED EXECUTIVE OFFICERS.

The management proxy holders will vote all duly submitted proxies EVERY 1 YEAR for the advisory vote on the frequency of future advisory votes to approve the compensation of named executive officers, unless duly instructed otherwise.

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PROPOSAL IIIIV

 

RATIFICATION OF THE APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

Description of Proposal

 

In accordance with its charter, the Audit Committee has selected Baker Tilly US, LLP (“BT”) as the Company’s independent registered public accounting firm to audit our consolidated financial statements for fiscal 20222023 and to render other services required of them. The Board is submitting the selection of BT for ratification at the Annual Meeting. Representatives of BT are expected to be present at the Annual Meeting and will have the opportunity to make a statement if they so desire and will be available to respond to appropriate questions.

 

Selection of Independent Registered Public Accounting Firm

 

The submission of this matter for ratification by stockholders is not legally required. However, the Board and its Audit Committee believe that such submission provides an opportunity for stockholders to give direct feedback to the Board and its Audit Committee on an important issue of corporate governance. If the stockholders do not ratify the selection of BT, the Audit Committee will reconsider the selection of such firm as our independent registered public accounting firm, although the results of the vote are not binding on the Audit Committee.

 

The Audit Committee has the sole authority and responsibility to retain, evaluate, and, where appropriate, replace our independent registered public accounting firm. Ratification by the stockholders of the selection of BT does not limit the authority of the Audit Committee to direct the appointment of a new independent registered public accounting firm at any time during the year or thereafter, and the failure to gain such ratification does not limit the Audit Committee’s authority to retain BT.

 

Board Recommendation on Proposal

 

OUR Board of Directors unanimously recommends a voteBOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE FOR the ratification of the selection ofTHE RATIFICATION OF THE SELECTION OF BT as Harte Hanks’ independent registered public accounting firm for the fiscal year ended DecemberAS HARTE HANKS’ INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022.2023.

 

The management proxy holders will vote all duly submitted proxies FOR the ratification of the selection of BT as Harte Hanks’ independent registered public accounting firm for the fiscal year ended December 31, 20222023 unless duly instructed otherwise.

 

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Audit Committee Report

 

In connection with the Company’s consolidated financial statements for the year ended December 31, 2021,2022, the Audit Committee:

 

•		reviewed and discussed the audited financial statements with management;
•		discussed with the independent registered public accounting firm auditing the Company’s financial statements, BT, the matters required to be discussed by Auditing Standard No. 1301130 Communications with Audit Committee; and
•		received the written disclosures and the letter from BT as required by the Public Company Accounting Oversight Board regarding BT’s communications with the Audit Committee concerning independence and has discussed with BT its independence.

 

Based on the review and discussions with the Company’s management and the independent registered public accounting firm, as set forth above, the Audit Committee recommended to the Board that the audited financial statements be included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021,2022, for filing with the SEC.

 

The foregoing report is respectfully submitted by the members of the Audit Committee at the time the Company’s consolidated financial statements for the year ended December 31, 20212022 were approved.

 

	Genni Combes, Chair
	John H. Griffin, Jr.
	Bradley Radoff

 

The foregoing report shall not be deemed incorporated by reference by any general statement or reference to this Proxy Statement into any filing under the Securities Act or under the Exchange Act, except to the extent that the Company specifically incorporates this information by reference and shall not otherwise be deemed filed under those Acts.

 

Independent Auditor Fees and Services

                   

Baker Tilly US, LLP ("BT"(“BT”) served as our independent accountant in fiscal 20202022 and 2021.  BT continues to serve as our independent accountant.  

 

The following table sets forth the aggregate amount of various professional fees billed by our principal accountants:

 

		Years Ended								Years Ended
		December 31,								December 31,
		2021				2020				2022				2021
Audit fees		$	426,500			$	441,150			$	546,000			$	426,500
Audit related fees			—				—				—				—
Tax Fees (relating to state, federal and international tax matters)			—				—				—				—
All Other Fees			—				—				—				—
Total audit and audit-related fees		$	426,500			$	441,150			$	546,000			$	426,500

 

 

Audit Fees. Audit fees consist of aggregate fees for the annual financial statement audit, quarterly financial statement reviews and services in connection with filings with the SEC. All audit fees are approved by the Board.

 

Audit-Related Fees. Audit-related fees consist of aggregate fees for assurance and related services other than those included under “Audit Fees” above. Includes charges for statutory audits of certain of the Company’s foreign subsidiaries required by countries in which they are domiciled in 20212022 and 2020.2021.

 

Tax Fees. Tax fees include fees for professional services for tax compliance, tax advice and tax planning, primarily, fees related to tax preparation services. All tax fees are approved by the Audit Committee.

 

All Other Fees: Other fee include fees for products and services other than the services reported above. All other fees are approved by the Audit Committee.

 

Pre-Approval Policies and Procedures

 

Our Audit Committee has established procedures for pre-approval of audit and non-audit services as set forth in the Audit Committee Charter. The Audit Committee considers whether the audit fees disclosed above are compatible with maintaining BT'sBT’s independence and has so determined that the service provided by BT is compatible with maintaining BT’s independence. The Audit Committee pre-approved audit services provided to us by BT in 20212022 and those proposed to be provided by BT in 2022.2023.

 

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OTHER BUSINESS

 

The Board is not aware of any matter to be presented for action at the Annual Meeting other than the matters set forth above, and no matter has been presented to the Company within the proper time period afforded by the by-Laws. If  any other matter requiring a vote of stockholders was timely/ properly preserved, then the proxies in the enclosed form confer upon the person or persons entitled to vote the shares represented by such proxies discretionary authority to vote the same in accordance with their best judgment.

 

 

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SUBMISSION OF STOCKHOLDER PROPOSALS FOR 20232024 ANNUAL MEETING

 

There are two different deadlines for the submission of stockholder proposals. Stockholder proposals that are being submitted for inclusion in our proxy statement and form of proxy for our 20232024 annual meeting of stockholders (the “2023“2024 Meeting”) must be received by us at our principal executive offices located at 21 Executive Drive, Suite 103,303, Chelmsford, MA 01824. on or before January 23, 2023 (assuming the 2023 Meeting is held on May 23, 2023, the anniversary of the Annual Meeting).December 30, 2023. Such proposals when submitted must be in full compliance with applicable laws, including Rule 14a-8 of the Exchange Act.

 

Under our Bylaws, stockholder nominations for election of directors or stockholder proposals that are being submitted other than for inclusion in the proxy statement and form of proxy for our 20232024 Meeting must be received at our principal executive offices no earlier than January 23, 202324, 2024 and no later than February 23, 2023 (assuming that the 2023 Meeting is held on May 23, 2023, the anniversary of the Annual Meeting).2024. Such proposals when submitted must be in full compliance with applicable law and our Bylaws. Any stockholder proposals not received by such applicable dates will be considered untimely.

 

ALL STOCKHOLDERS ARE URGED TO PROMPTLY SUBMIT THEIR PROXY OR VOTING INSTRUCTIONS AS SOON AS POSSIBLE BY FOLLOWING THE INSTRUCTIONS ON THE PROXY CARD, WHICH WILL BE MAILED TO YOU ON OR ABOUT APRIL 25,28, 2022.2023.

 

 

IMPORTANT

 

Your vote at the Annual Meeting is especially important, no matter how many or how few shares you own. Please sign and date the enclosed proxy card and return it in the enclosed postage-paid envelope promptly.

 

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