Brinks revises CEO severance and equity award terms in new agreements

The Brink’s Company (NYSE:BCO) announced changes to its executive compensation arrangements this week, including amendments to severance and change in control plans for President and Chief Executive Officer Mark Eubanks. The updates were disclosed in a press release statement filed with the Securities and Exchange Commission.

On Thursday, the company and Mr. Eubanks entered into a letter agreement addressing the treatment of equity awards and company match units in the event of certain terminations. Under the new terms, if Mr. Eubanks’ employment is involuntarily terminated by Brinks without cause before September 7, 2026, any unvested company-paid matching contributions in the form of stock units will fully vest as of his termination date. Normally, these units vest over five years of continued service.

The agreement also provides that, if Mr. Eubanks is terminated without cause, his annual performance stock unit awards not scheduled to vest within two years after his termination will remain outstanding and vest based on actual performance at the end of the performance period. The number of units earned will be prorated according to the time elapsed.

For voluntary terminations on or after May 1, 2028, and before September 7, 2031, Mr. Eubanks may be eligible for continued vesting of future equity awards if he gives six months’ advance written notice and has completed at least one year of service after the grant date.

Additionally, any changes to the company’s severance plan that would reduce benefits for Mr. Eubanks will not take effect until at least 24 months after approval by the board committee, unless he provides written consent.

On Wednesday, Brinks’ Compensation and Human Capital Committee approved amendments to the severance and change in control plans. The severance plan now increases the CEO’s cash severance benefit from 1.5 times to 2.0 times annual salary and target annual incentive. The period for continued equity vesting was extended from 12 to 24 months, and performance-based vesting will be determined by actual results at the end of the performance period.

Under the revised change in control plan, the CEO’s cash severance benefit increases from 2.0 times to 3.0 times annual salary and three-year average bonus. Healthcare continuation benefits were extended from 18 to 24 months, and the employment protection period was expanded to include six months prior to a change in control.

These changes were adopted following a competitive market review. The company’s current trading metrics suggest it may be slightly undervalued compared to its InvestingPro Fair Value, with analysts setting price targets ranging from $115 to $138. The stock maintains strong fundamentals, with an EBITDA of $750 million in the last twelve months and a P/E ratio of 24.9, which appears reasonable given the expected earnings growth.

In other recent news, Brink’s Company reported its first-quarter 2025 financial results, surpassing expectations with an earnings per share (EPS) of $1.62, compared to the forecasted $1.37. The company’s revenue reached $1.25 billion, exceeding the anticipated $1.21 billion. This performance was driven by strong growth in ATM Managed Services and Digital Retail Solutions, which now account for 25% of the total business. Despite these positive results, the stock experienced a slight decline in after-hours trading. Brink’s continues to expand its global presence with new partnerships in North America and international markets like the Philippines and Indonesia. The company maintains its full-year guidance for mid-single-digit organic growth and expects a 30-50 basis point expansion in EBITDA margins. Analysts from firms like Goldman Sachs and William Blair have shown interest in Brink’s strategies for managing currency fluctuations and expanding its service offerings. The company’s focus on sustainable growth and shareholder returns remains evident, as highlighted by its recent increase in quarterly dividends.

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