Dentsply Sirona Inc., the maker of dental equipment, is incentivizing executives to reduce costs due to the effects of the COVID-19 pandemic on the dental industry, according to an 8-K filing with the Securities and Exchange Commission.

On Sept. 3, Dentsply Sirona’s Human Resources Committee adopted a revised 2020 incentive plan for its executives, replacing its initial 2020 Annual Incentive Plan, the filing shows.

The “disruption in global dental services markets resulting from the COVID-19 pandemic has severely impacted demand” for Dentsply Sirona’s products, according to the filing. Dentsply Sirona’s human resources committee “determined that the performance targets in the Prior Plan were no longer appropriate to properly motivate its key executives to achieve the Company’s goals and objectives, and terminated the Prior Plan.”

The revised plan “focuses on incentivizing executives to find opportunities to reduce the Company’s expenses through restructuring and other cost-cutting measures and to implement certain key growth initiatives to position the Company to achieve its objectives in 2021 and beyond.”

The plan also provides potential cash incentives based on performance achievement for the third and fourth quarters of 2020. The possible cash payments’ funding level depends on the company’s financial performance in the second half of 2020, adjusted for restructuring activities and with a minimum targeted EBITDA.

“Upon achievement of the EBITDA objectives that result in funding of the Revised Plan at any level, the HR Committee will then evaluate strategic objectives related to restructuring and growth initiatives and may use its negative discretion to pay the cash incentive at a level that is lower than the payout based solely on the EBITDA objectives to the extent that all of the strategic objectives are not achieved,” the filing states.

The target payouts as percentages of salary are consistent with the previous plan, the filing notes. Still, the payouts are prorated for a partial year, meaning they’ll result in 50 percent of the amount that could have been earned under the initial plan.

Dentsply and Sirona merged in 2016, becoming the world’s leading manufacturer of supplies and equipment in the dental industry space.

Shares of Dentsply Sirona (XRAY) fell 1.15 percent, or 51 cents, to close at $43.72 on Thursday.