IEH Corporation (OTC Pink:IEHC), a manufacturer specializing in electronic connectors with a market capitalization of $25.59 million, has entered into a new employment agreement with its Chief Executive Officer and President, David Offerman, as disclosed in a recent SEC filing.
According to InvestingPro data, the company has demonstrated strong revenue growth of 30% over the last twelve months and maintains a robust financial health score. The contract, effective from January 1, 2025, will extend through December 31, 2029.
Under the terms of the agreement, Mr. Offerman's annual base salary is set at $491,745, with the potential for a performance-based annual bonus of up to 100% of his base salary. These performance targets and objectives are to be established by the Compensation Committee of the board of directors.
Additionally, Mr. Offerman is slated to receive 25,000 stock options as part of the company's 2020 Equity Based Compensation Plan, with an exercise price of $10.75 per share for the fiscal year ending March 31, 2025. These options are fully vested upon grant. InvestingPro analysis indicates the stock is currently trading at a high P/E ratio of 185, with eight additional key insights available to subscribers. The company's stock has delivered a strong year-to-date return of 38.71%.
The agreement also stipulates that Mr. Offerman will be eligible for further equity or performance awards in line with any long-term incentive plans the Committee or board might adopt.
In the event of termination without "cause" or if Mr. Offerman resigns for "good reason," he is entitled to a severance package that includes 36 months of base salary and up to 24 months of continued health and welfare plan participation, along with any accrued unpaid compensation.
Additionally, in the case of a "change in control," as defined in the employment agreement, Mr. Offerman could receive similar compensation and benefits to those provided for termination without "cause" or for "good reason."
The agreement also imposes standard confidentiality, non-solicitation, and non-competition obligations upon Mr. Offerman following the termination of his employment. For comprehensive analysis of IEH Corporation's financial health and detailed valuation metrics, investors can access additional insights through InvestingPro's advanced analytics platform.
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