(e)

Compensation of Named Executive Officers

On December 15, 2008, the Compensation Committee of Transcend Services, Inc. ("Transcend") completed its annual performance and compensation review of the Company's named executive officers ("executive officers") as defined by Item 402(a)(3) of Regulation S-K and made recommendations to the Board of Directors for fiscal 2009 compensation. The following is a description of the compensation arrangements that were approved by the Board of Directors for Transcend's executive officers:

Fiscal 2009 Annual Base Salary

The following salary changes were approved by the Board of Directors effective
January 1, 2009:



                                             Annual Salary
                        Name             Previous       New
                        Larry Gerdes     $ 265,000   $ 315,000
                        Lance Cornell    $ 180,000   $ 200,000
                        Susan McGrogan   $ 200,000   $ 250,000
                        Leo Cooper       $ 180,000   $ 190,000

Fiscal 2009 Target Awards under the 2009 Bonus Plan

For fiscal 2009, each of the executive officers is eligible to earn a cash incentive award under Transcend's 2009 Bonus Plan based primarily on the achievement of specified objective performance targets and, to a lesser extent, other discretionary measures for the 2009 fiscal year. Mr. Gerdes, Mr. Cornell and Ms. McGrogan are each eligible to receive a bonus at a target rate of 50% of annual salary, with the potential to achieve 120% of the target rate (60% of annual salary) upon specified over-achievement of their objectives. Mr. Cooper is eligible to receive a target bonus of $20,000, with the potential to achieve 120% of the target bonus ($24,000) upon specified over-achievement of his objectives. Such bonuses, if any, will be paid in the first quarter of 2010.

                                             Bonus at
                            Name              Target
                            Larry Gerdes     $ 157,500
                            Lance Cornell    $ 100,000
                            Susan McGrogan   $ 125,000
                            Leo Cooper       $  20,000

In addition, Mr. Cooper is eligible to receive a commission equal to 1% of "first year annual revenue," as defined in his compensation plan, generated from 2009 new customer sales, payable over the first year of the agreements.