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ChampionX Corp (NASDAQ:CHX), a $5.1 billion market cap company specializing in construction, mining, and materials handling machinery and equipment, disclosed a significant agreement with its Chief Financial Officer, Mr. Kenneth Fisher, on December 23, 2024, as part of its ongoing merger with Schlumberger Limited (NYSE:SLB).
According to InvestingPro data, the company maintains a healthy financial position with a "GOOD" overall health score. The agreement aims to mitigate the potential impact of Sections 280G and 4999 of the U.S. Internal Revenue Code, which could affect payments related to the merger.
The arrangement amends Mr. Fisher's existing restricted stock unit and performance share award agreements. Under the new terms, 82,502 restricted stock unit awards will be settled early, resulting in the issuance of restricted common stock to Mr. Fisher, adhering to the same vesting schedules.
The company's stock currently trades at $26.68, near its 52-week low of $25.46, with InvestingPro analysis suggesting the stock is slightly undervalued based on its Fair Value assessment. If Mr. Fisher's employment terminates before vesting, he must repay the company the value of any Restricted Stock withheld for taxes.
Additionally, the agreement accelerates the vesting of 43,795 performance shares expected to be earned by December 31, 2024, based on performance goals, with common stock issued to Mr. Fisher after tax withholdings. The full text of the agreement will be included in ChampionX’s annual report on Form 10-K for the year ending December 31, 2024.
This strategic move comes as part of ChampionX’s merger with Schlumberger, which is anticipated to result in ChampionX operating as an indirect wholly owned subsidiary of SLB. The merger was first disclosed on April 2, 2024, and the recent agreement with the CFO is a step towards finalizing the process.
The information in this article is based on a press release statement. For deeper insights into ChampionX's financial health, including detailed valuation metrics and expert analysis, access the comprehensive Pro Research Report available exclusively on InvestingPro, covering this and 1,400+ other US equities.
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