Stanley Furniture Co. reported Friday in a preliminary proxy statement that President and CEO Glenn Prillaman’s salary declined 2 percent in 2016 to $255,000.

Although Prillaman’s salary fell due to the company’s poor performance, the value his stock awards in 2016 increased 1 percent and his overall compensation remained relatively unchanged at $536,601.

Vice President and Corporate Controller Anita Wimmer saw a 4 percent decline in total compensation to $172,501.

Wimmer’s salary also decreased 2 percent from 2015 to $150,000 but the value of her stock awards declined 15 percent.

Neither executive received a bonus in 2015 or 2016, and the company announced Dec. 2, that the base salary for both executives will decrease by 25 percent in 2017.

In a Feb. 22 press release, the company reported a net loss from continuing operations of $301,000 in the fourth quarter, compared to almost $1 million of net income in the same quarter last year.

For 2016 the company reported a net loss from continuing operations of $5.3 million, down from $5.4 million of net income the previous year.

Gross profit margin declined from 24 percent to 19 percent for the year, and selling, general and administrative expenses grew to 31 percent of net sales compared to 22 percent in 2015.

At years end the company had only $4.2 million in cash, with over $22 million of inventory on the balance sheet.

According to the release the decline in sales and profitability can be attributed to sourcing delays, and that the majority of new styles sold to wholesale customers over the past eighteen months have yet to reach retail floors.

Prillaman said that the sales decline does not present an accurate portrayal of demand for the company’s products, nor of the strength of the company’s retail distribution network.

“The past year’s financials reflect our struggle to capitalize on a strategic manufacturing alliance with an overseas vendor and we have initiated plans to fulfill order backlog through other existing sources with whom we already do business,” Prillaman said.

According to the press release the company expects to overcome the supply constraints in the second quarter of 2017, and management has adjusted the company’s cost structure to achieve lower break-even levels.

The company missed quarterly earnings per share estimates in the first three quarters of 2016, and no estimates were given for the fourth quarter.

On Feb. 15, the company announced that its stock will be delisted from the NASDAQ stock exchange unless it climbs above $1 per share for 10 consecutive days by Aug. 9, 2017.

On Friday, the stock closed down slightly at 80 cents per share.