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SAN RAMON, CA – Five9, Inc. (NASDAQ:FIVN), a cloud contact center provider with a market capitalization of $3.18 billion and impressive revenue growth of ~14% over the last twelve months, has announced the extension of its 2019 Key Employee Severance Benefit Plan (KESP), originally set to expire on April 4, 2025. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 1.85, indicating solid financial stability. The plan, effective since April 4, 2019, has been extended for an additional two years as of Tuesday, following approval by the company’s Compensation Committee. This extension ensures continued benefits for senior executives, including named executive officers, under the same terms as previously established.
The KESP provides severance benefits to participants terminated without cause, not related to a change in control. Eligible participants can receive a lump sum payment ranging from four to twelve months of their base salary, depending on their tier level, along with health insurance coverage for the same duration. With the company’s earnings report due on February 20, InvestingPro data shows 15 analysts have revised their earnings estimates upward, suggesting positive expectations for the upcoming period. In the event of a termination related to a change in control, the benefits increase to a lump sum of six to eighteen months of the base salary and target annual bonus, extended health coverage, and full acceleration of unvested equity awards.
The decision to extend the KESP was made after consultation with a compensation consultant and aims to offer a safety net to the company’s key employees. The participating executive officers include Michael Burkland, Chief Executive Officer; Barry Zwarenstein, Chief Financial Officer; Andy Dignan, Chief Operating Officer; and Panos Kozanian, Executive Vice President of Product Engineering.
The KESP also includes a provision to reduce payments or benefits if they would trigger an excise tax under the Internal Revenue Code, ensuring a higher net after-tax benefit to the participant. To receive the severance benefits, participants must sign a release of claims and adhere to any applicable restrictive covenants.
This strategic move by Five9 reflects the company’s commitment to its leadership team and provides a structured compensatory framework in case of unforeseen departures. The information is based on a press release statement and a recent filing with the Securities and Exchange Commission. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with additional insights available in the comprehensive Pro Research Report, which offers deep-dive analysis of this and 1,400+ other US equities.
In other recent news, Five9, a cloud contact center software company, has undergone significant changes. The company’s Executive Vice President of Go-to-Market Strategy, Daniel Burkland, transitioned to a consulting role, providing advisory services focused on sales, marketing, partnerships, and customer relationships. This move is part of Five9’s strategy to leverage experienced leadership in a consulting capacity.
In addition, Needham has maintained a positive stance on Five9, raising its price target and continuing to endorse a Buy rating for the stock. The firm’s confidence is based on Five9’s AI Genius suite, particularly the AI Agent expansion, which is expected to enhance customer support experiences.
Concurrently, Piper Sandler expressed heightened investor interest in Five9 during an Infrastructure Software (ETR:SOWGn) Bus Tour. The company’s competitive positioning in AI was a focal point of discussion, highlighting its partnership with Salesforce (NYSE:CRM) and data monetization strategies.
Moreover, Five9 expanded its board with the appointment of Sagar Gupta from Anson Funds. Gupta, with extensive experience in the technology, media, and telecommunications sectors, is expected to contribute to the company’s adaptation to market demands. These developments reflect the recent activities and strategic moves within Five9.
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