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CPI Aerostructures Inc . (NYSE American:NYSE:CVU), a New York-based manufacturer of aircraft parts, has announced the appointment of Philip Passarello as its new Chief Financial Officer and Secretary, effective Monday. This move comes after the company's previous CFO, Andrew Davis, was terminated without cause on August 13, 2024.
Passarello, 45, brings a wealth of financial expertise to CPI Aerostructures, having served as Vice President of Finance at TTM Technologies (NASDAQ:TTMI), where he oversaw financial operations for the integrated electronics business. Prior to TTM, he held various managerial and executive roles at Telephonics Corporation, culminating in his position as Vice President of Finance. Passarello's early career included a five-year tenure at KPMG LLP, focusing on public company audits.
The new CFO will be compensated with an annual base salary of $350,000 and is eligible for additional cash and equity bonuses based on performance. His remuneration package includes a one-time grant of 20,000 restricted shares of the company's common stock, set to vest in 2026, and potential cash bonuses totaling $100,000, contingent upon employment status and timely SEC filings.
In conjunction with his appointment, Passarello has entered into a Severance and Change in Control Agreement with CPI Aerostructures, which outlines various severance scenarios. If his employment is terminated without cause, he is entitled to a year's salary continuation, bonuses, and a non-competition clause effective for the duration of the severance payments.
The company's announcement, based on an SEC filing, suggests strategic shifts in its executive team as it continues to navigate the aircraft parts manufacturing industry. CPI Aerostructures' choice of Passarello reflects a focus on financial stability and strategic growth. The company has made no further comments on the executive changes.
In other recent news, CPI Aerostructures, a U.S. manufacturer of structural assemblies for aircraft, has been making significant strides in its operations. The company announced a Long Term Agreement with MST Manufacturing for component supply, extending through the end of 2027. This deal is expected to bolster CPI Aerostructures' aerostructures production.
In addition, CPI Aerostructures secured a follow-on order worth approximately $1.3 million for welded structural assemblies from a U.S. military helicopter customer. The company anticipates fulfilling these orders by mid-2025, reinforcing its ongoing relationship with U.S. Defense and Allied Forces.
The company also reported changes in its executive compensation, increasing CEO Dorith Hakim's annual base salary by 4.8% to $385,000. This decision was made by the Compensation and Human Resources Committee. Shareholders of CPI Aerostructures recently approved this executive compensation and elected Pamela Levesque and Richard C. Rosenjack, Jr. as Class II directors.
CPI Aerostructures transitioned to a new independent accounting firm, Marcum LLP, replacing RSM US LLP. This change occurred without disagreements over accounting principles or financial statement disclosure, though the company did report "reportable events" related to internal control matters.
InvestingPro Insights
As CPI Aerostructures Inc. (NYSE American:CVU) welcomes Philip Passarello as its new CFO, the company's financial standing and stock performance become a focal point for investors. According to InvestingPro, CPI Aerostructures has recently experienced a significant return over the last week, with a 14.91% increase in price total return, highlighting a positive market reaction possibly tied to the latest executive changes. The company is also trading at a low earnings multiple, with an adjusted P/E ratio of 2.08 as of the last twelve months leading up to Q2 2024, suggesting that the stock may be undervalued relative to its earnings.
Furthermore, InvestingPro Tips reveal that CPI Aerostructures has a high shareholder yield and has been profitable over the last twelve months. These data points may offer reassurance to investors about the company's potential for sustained financial health. The company's liquid assets also exceed its short-term obligations, which could indicate a solid financial position to support strategic growth initiatives under the new CFO's leadership. For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available that delve deeper into CPI Aerostructures' financial metrics and stock performance.
With a market capitalization of $34.16 million and a promising InvestingPro Fair Value estimate of $3.00 per share, CPI Aerostructures appears to be on a path to recovery and growth. It's important to note that the company does not pay dividends, which may be a consideration for income-focused investors. As Philip Passarello steps into his role, the financial expertise he brings from his previous positions could be pivotal in capitalizing on the company's current market position.
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