Clearwater Paper announces executive changes

Published 12/05/2025, 21:46
Clearwater Paper announces executive changes

Clearwater Paper Corp (NYSE:CLW), currently valued at $452 million and trading near $28 per share, disclosed executive changes and stockholder voting results in a recent SEC 8-K filing. According to InvestingPro analysis, the company shows mixed signals with management actively buying back shares despite facing profitability challenges. Michael S. Gadd will resign as Senior Vice President, General Counsel, effective July 1, 2025, transitioning to a Senior Vice President role with a $360,000 annual salary. He will maintain participation in the company’s incentive plans. Marc D. Rome is set to replace Gadd as Senior Vice President, General Counsel, while continuing as Corporate Secretary.

The company’s stockholders, during the Annual Meeting on May 8, 2025, approved an amendment to the 2017 Stock Incentive Plan, establishing a new share reserve with 600,000 shares available for issuance. The amendment also includes provisions for shares returned to the reserve due to forfeiture or other reasons. This comes at a time when the company faces significant challenges, with a concerning gross profit margin of just 4.7% and negative free cash flow in the last twelve months. For deeper insights into Clearwater Paper’s financial health and growth prospects, InvestingPro subscribers have access to over 30 additional key metrics and analysis.

Additionally, stockholders ratified the appointment of KPMG, LLP as the independent registered public accounting firm for 2025 and approved, on an advisory basis, the compensation of the named executive officers. They also voted for the election of directors, with Jeanne M. Hillman and Ann C. Nelson securing their positions until the 2026 Annual Meeting.

The details of these corporate governance actions are based on the information provided in the SEC filing by Clearwater Paper Corp, a company incorporated in Delaware and headquartered in Spokane, WA, operating in the paperboard mills industry. Despite current challenges, analysts tracked by InvestingPro expect the company to return to profitability this year, with the stock currently trading below its Fair Value.

In other recent news, Clearwater Paper Corporation reported its first-quarter 2025 earnings, showcasing a notable 46% increase in net sales year-over-year, reaching $378 million. Despite this surge in sales, the company recorded a consolidated net loss of $6 million, or $0.36 per diluted share. The earnings results were driven by the Augusta acquisition and operational improvements, contributing to an adjusted EBITDA of $30 million, which was at the high end of Clearwater Paper’s guidance. The company also announced a share repurchase of $11 million in the first quarter, totaling $15 million since the new buyback authorization in November 2024. Clearwater Paper provided guidance for Q2 2025, projecting adjusted EBITDA between $35 million and $45 million and full-year revenue between $1.5 billion and $1.6 billion. The company’s future strategy focuses on cost savings and exploring new product innovations, with a target of $30 million to $40 million in cost savings for the year. Additionally, Clearwater Paper is exploring potential expansions into new paperboard substrates, which could involve capital investments or acquisitions. These recent developments reflect the company’s strategic focus on operational efficiency and product development.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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