RACINE, WI – Twin Disc (NASDAQ:TWIN), Incorporated (NASDAQ:TWIN), a leader in power transmission technology for marine and land-based applications, announced a series of executive compensation updates, including the amendment and restatement of its Omnibus Incentive Plan, according to a recent SEC filing.
Effective immediately, the Board of Directors has approved the Amended and Restated 2021 Omnibus Incentive Plan, which consolidates previous equity compensation plans and extends coverage to officers, key employees, consultants, and non-employee directors.
The plan earmarks 1,636,550 shares of common stock for issuance, which includes previously approved shares, shares from the 2020 Directors’ Plan, and an additional 400,000 new shares. The shares are subject to adjustment for stock splits and similar events.
The Compensation and Human Capital Committee will administer the plan for officers and employees, while the Board will manage awards for non-employee directors. The plan provides for a variety of stock-based awards and sets forth provisions for vesting and issuance. However, the plan requires shareholder approval by August 1, 2025; otherwise, all awards under the plan will be void, and previous plans will remain effective.
In related news, the Committee has approved salary increases and fiscal 2025 bonus targets for the company's principal executive officer, John H. Batten, and principal financial officer, Jeffrey S. Knutson. The increases are set at 4.0%, effective the first pay period in October, with Batten's base salary rising to $712,071 and an 85% target bonus, and Knutson's to $419,369 with a 55% target bonus.
Additionally, on August 1, 2024, Twin Disc granted significant restricted stock unit awards to Batten and Knutson under the Omnibus Plan. Batten received 30,474 units, and Knutson was awarded 14,963 units, both vesting over three years, subject to continued employment. The awards also include dividend equivalent rights, providing payments equivalent to dividends during the vesting period.
Moreover, performance stock awards were granted with targets tied to return on invested capital and cumulative EBITDA over three years. Batten and Knutson could receive up to 136,310 shares depending on performance outcomes.
This news is based on Twin Disc's recent SEC filing and does not include any speculative content or endorsements of claims.
InvestingPro Insights
Amidst the updates to executive compensation and equity awards at Twin Disc, current market data and analysis from InvestingPro reveal a nuanced picture of the company's financial health. As of the last twelve months leading up to Q3 2024, Twin Disc's Market Cap stands at $173.14 million, with a P/E Ratio of 16.07, indicating a market valuation that reflects its earnings. Additionally, the company's Price/Book ratio is at a conservative 1.18, suggesting that the stock is potentially undervalued relative to its assets.
Notably, Twin Disc's recent price movements reflect some volatility, with a significant drop over the last week, but analysts on InvestingPro remain optimistic, predicting profitability for the current year. This sentiment is backed by the company's strong free cash flow yield, as highlighted in one of the InvestingPro Tips, which suggests the potential for shareholder returns. Furthermore, the company's liquid assets surpass its short-term obligations, and it operates with a moderate level of debt, indicating a solid financial footing.
Investors looking to delve deeper into Twin Disc's financial prospects can find additional insights and tips on InvestingPro, where there are currently six more tips available, offering a comprehensive analysis of the company's performance and future outlook.
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