Jason Dies: Yeah, you’re talking specifically about the SendTech. Business, I think with these [multiple speakers].
Kartik Mehta: Yeah. Yeah, I apologize. Yeah.
Jason Dies: Yeah, so look, I mean, as you know, and as we’ve talked about before, we are in the tail end of IMI migration through most of our portfolio. So if you think about the middle of the range, and the low end of the range, that has to get done this year. We have to move those clients to the new platform. We have more time on the top end, and on the higher end of the products, which we announced at the beginning of last year. So the truth is we’re going to continue to focus on that IMI migration. We’re going to continue to use the value of the lease extensions that we’re now at the point where we can start to really drive very effectively. We’ve talked about before those lease extensions have a positive impact overall, in walking in revenue for us for the long term.
So 2024, to your point will be a bit of a transition period, as you see us move from our existing equipment portfolio, finish off moving to the new equipment portfolio, start to see more of those lease extensions, as opposed to new equipment placements. And it will make for a little bit different 2024, but one that ultimately is going to strengthen us as we go forward and lock in those recurring revenues.
Kartik Mehta: Perfect, thank you very much. I really appreciate it.
Operator: Thank you. And next we’ll go to Anthony Lebiedzinski with Sidoti. Please go ahead.
Unidentified Analyst: All right. Good morning. This is Stefan Dio [ph] on for Anthony Lebiedzinski. How you guys doing?
Jason Dies: Doing well. Thanks.
Unidentified Analyst: I guess my first question is, can you talk about the expected impact of higher variable compensation in wages inflation in 2024?
Ana Maria Chadwick: Yes, so I’ll take that. Thank you for the question. So what we are observing here is, we are very committed to our restructuring activities. And we anticipate those savings that I mentioned between $75 million and $85 million as we exit 2024. The significant portion of that will be consumed with variable compensation as we anticipate paying our employees at a full rate, vis-à-vis the performance we’ve had this year, which has not enabled us to do so. And in terms of increases, we pay market, and we’re seeing in general, as everybody in the market is seeing, and there are different aspects of the market in hourly labor versus salaried and so on. But on average, we’re somewhere around that 3% wage increase that that we’re seeing across the board.
Jason Dies: Yeah, I’d just say just specifically. I mean, look, it is incumbent on us to continue to drive productivity to continue to drive cost out. You know that labor is something that you’re going to have to adjust to and make sure you’re getting the right talent to run the business. But that’s part of a larger equation that we’re going to continue to balance going forward.
Unidentified Analyst: Thank you for the color. And my next question is, in terms of the cost saving plans that you announced last year, to use like baseball terms, what innings are you in as far as capturing the benefits of this restructuring?
Ana Maria Chadwick: Yes, great question. So we announced just for background here, we announced the program back in first quarter, at the end of our first quarter earnings calls. So we’ve had three quarters of execution. And as you’ll recall, last quarter, we upped that number. So based on where we are with our commitment, we feel we’re very confident, of delivering and attaining that. And I would say, we’re pretty far along the glide path. As Jason mentioned, we’re never done. We need to remain competitive in the market. We’re not leaving any stone unturned. And we will continue to look for further activities to optimize our costs.
Jason Dies: Yeah, I’ll go back to your baseball analogy, we are late innings. So we saw significant impact of that in Q4 start to materialize for us. I will tell you all the actions and activities that we need to execute on to yield that restructuring savings have already been plumbed in the system and are late stages of being executed. And we expect to realize the full benefit of that throughout 2024.
Unidentified Analyst: Thank you. And the last one for me is that, can you provide an update on the CEO search process?
Jason Dies: Yeah, look. So I will say what I believe I said on the last call, right. So the Board has formed a four person committee that is using a nationally ranked search firm to go off and seek appropriate candidates. We said early on that that was going to take some time and the Board was going to be clear and fulsome in their process that they went through. We announced I think, in the November earnings call, that that process at the moment was expected to take four to six months. And we’re right in that window.
Unidentified Analyst: Thank you so much for taking my questions.
Jason Dies: Thank you.
Operator: And next we’ll go to Matt Swope with Baird. Please go ahead.
Matthew Swope: Good morning, Jason, and Ana. So Ana, to the margin guidance you gave to the effectively flat for the whole company year-over-year that the sort of wage inflation you’ve mentioned, and the increase in the variable comp, will offset the cost savings, essentially dollar for dollar.
Ana Maria Chadwick: Yeah, so let me add to that thinking for a minute here. So we mentioned revenue, flat to potentially down in the low single digits. So to the extent that we have any revenue pressure, remember that that drive, leverage component that we need to also address? So I would say it’s the three components that I just mentioned,
