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WEST ORANGE, NJ – Bel Fuse (NASDAQ:BELFA) Inc. (NASDAQ:BELFB), a manufacturer of electronic components with a market capitalization of $934 million, has made adjustments to its executive compensation program following a comprehensive review by the Compensation Committee of the Board. According to InvestingPro analysis, the company maintains strong financial health with a "GOOD" overall rating, supported by a healthy current ratio of 2.92. The changes and bonus awards for fiscal year 2024 were approved on Sunday, March 12, 2025, and disclosed in an SEC filing today.
The incentive awards for fiscal 2024 were determined for the company’s named executive officers (NEOs), excluding President and CEO Daniel Bernstein, whose bonus had been previously set by contract. The Compensation Committee acknowledged that the ambitious performance targets set for 2024 did not adequately reflect the company’s significant achievements, including a historic year for profitability and gross margin (currently at 37.84%), as well as the successful acquisition of an 80% stake in Enercon. InvestingPro data reveals the company generated $96.53 million in EBITDA over the last twelve months, with analysts forecasting EPS of $5.95 for FY2025.
The Committee decided to apply a 30% reduction to the target award opportunities for executives based on overall company performance, with individual contributions during the fiscal year determining the final payout. Executives whose incentives were based on business unit performance and met the criteria received full bonus payouts.
The total incentive awards, paid partly in cash and partly in time-based restricted stock, were approved for several NEOs. For instance, Farouq Tuweiq, CFO, and Peter Bittner III, an executive officer, both received a total incentive award payout of $328,125, with $196,875 in cash and $131,250 in deferred equity. The deferred equity, granted on March 15, 2025, will vest over three years.
The Board, upon the Committee’s recommendation, has also revised the Incentive Compensation Program for fiscal 2025 to include new performance measures such as target net revenue and non-GAAP Adjusted EBITDA Margin. Furthermore, the Committee plans to introduce annual performance stock units (PSUs) to incorporate medium-term goals into the overall compensation program, with vesting contingent upon achieving a pre-determined total stock return target over a three-year period.
In addition to changes in the incentive program, Steve Dawson’s base salary was increased to $315,000 from $250,000, effective January 1, 2025. Adjustments to other executives’ compensation had been previously reported in February.
This realignment of executive compensation aims to better reflect the company’s performance and align incentives with shareholder interests. The information is based on a press release statement filed with the SEC. With annual revenue of $534.79 million and strong profitability metrics, InvestingPro subscribers can access additional insights through the comprehensive Pro Research Report, which provides deep-dive analysis of over 1,400 US stocks, including Bel Fuse’s detailed financial health indicators and growth prospects.
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