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ENGLEWOOD, CO – Gevo (NASDAQ:GEVO), Inc., an industrial organic chemicals manufacturer, announced amended employment agreements with top executives and new contracts with other officers, as detailed in an 8-K filing with the U.S. Securities and Exchange Commission on Friday.
The company, which is incorporated in Delaware and trades on the Nasdaq Capital Market under the ticker GEVO, outlined changes in the compensatory arrangements for CEO Patrick Gruber and President and COO Christopher Ryan, as well as employment agreements for Chief Carbon and Innovation Officer Paul Bloom and Chief People Officer Kimberly Bowron.
Under the revised agreement, CEO Patrick Gruber will maintain his role with an annual base salary of $650,000 and is eligible for a target annual bonus of 100% of his base salary.
Moreover, he will receive an annual grant of equity awards commensurate with the median target award value of CEOs in the company's peer group. In the event of termination without cause or resignation for good reason, Gruber is set to receive severance equivalent to 24 months of base salary and double his target annual bonus, among other benefits.
President and COO Christopher Ryan's amended agreement includes a base salary of $431,600, with an 80% target bonus and annual equity awards valued at a minimum of $200,000. Ryan's severance package mirrors Gruber's in structure but with 12 months of base salary and a single target bonus.
New agreements for Paul Bloom and Kimberly Bowron establish their base salaries at $407,000 and $333,300, respectively, with corresponding target bonuses. Both agreements include severance provisions similar to Ryan's, with additional benefits in the event of termination around a change in control.
The executives' agreements also contain non-compete and non-solicitation clauses effective for up to two years post-employment. Moreover, the executives will receive restricted stock grants and potential non-compete payments depending on the circumstances of their employment termination.
The 8-K filing also details retirement transition provisions, incentivizing executives to provide significant notice and assist in handing over their responsibilities smoothly.
The company's 8-K filing, which serves as the source of this information, provides further details on the specific terms of each executive's agreement.
InvestingPro Insights
In light of Gevo, Inc.'s recent executive compensation amendments, investors may find the following InvestingPro Insights particularly relevant. Gevo holds more cash than debt on its balance sheet, which could provide a degree of financial stability as it navigates its corporate strategy. Moreover, the company is trading at a low Price / Book multiple of 0.29 as of the last twelve months ending Q2 2024, suggesting that the stock might be undervalued relative to its book value assets.
While these aspects may appeal to value-oriented investors, it is worth noting that Gevo is quickly burning through its cash and has not been profitable over the last twelve months. The company's stock price has experienced significant volatility, and analysts do not anticipate Gevo will be profitable this year. Moreover, the company's gross profit margin stands at -105.98%, reflecting challenges in achieving profitability.
For those considering an investment in Gevo, these insights could be crucial in assessing the company's financial health and future prospects. For a more comprehensive analysis, InvestingPro offers additional tips on Gevo, which can be explored further for a deeper dive into the company's financials and market performance.
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