Frequency Electronics shareholders approve directors and executive pay at annual meeting

Frequency Electronics, Inc. (NASDAQ:FEIM), a company whose stock has surged over 110% year-to-date and currently trades near $39, held its annual meeting of stockholders on Wednesday. With a market capitalization of approximately $380 million and an "GREAT" financial health score according to InvestingPro, the company gathered shareholders representing 74.29% of outstanding common stock who participated in person or by proxy.

At the meeting, shareholders elected all five director nominees to serve one-year terms. The directors elected and their respective votes for and withheld were as follows: Jonathan Brolin (5,362,023 for, 78,386 withheld), Lance Lord (4,827,742 for, 612,667 withheld), Russell Sarachek (5,395,543 for, 44,866 withheld), Richard Schwartz (5,330,438 for, 109,971 withheld), and Thomas McClelland (5,395,575 for, 44,834 withheld). Broker non-votes for each nominee totaled 1,803,949 shares. The company, which operates with moderate debt levels and maintains strong liquidity with a current ratio of 2.3, continues to demonstrate solid corporate governance.

Shareholders also ratified the appointment of Grant Thornton LLP as the company’s independent registered public accounting firm for the fiscal year ending April 30, 2026, with 7,231,546 votes in favor, 10,944 against, and 1,868 abstentions.

In a non-binding advisory vote, shareholders approved the compensation of the company’s named executive officers, with 5,360,609 votes for, 70,505 against, and 9,295 abstentions. Broker non-votes on this item totaled 1,803,949 shares.

Additionally, in a separate non-binding advisory vote, shareholders voted to hold future advisory votes on executive compensation every year. The voting results were 5,082,722 for one year, 76,670 for two years, 270,163 for three years, and 10,854 abstentions. Broker non-votes totaled 1,803,949 shares.

The company’s board of directors determined that future non-binding advisory votes on executive compensation will be held annually until the next required vote on frequency, which will occur no later than the 2031 annual meeting.

This summary is based on information provided in a press release statement and the company’s recent SEC filing. Looking ahead, analysts have set price targets ranging from $33 to $43 for FEIM, with the next earnings report expected on December 11, 2025. For deeper insights into FEIM’s valuation and growth prospects, including 16 additional ProTips and comprehensive financial analysis, visit InvestingPro.

In other recent news, Frequency Electronics, Inc. reported a decline in its first-quarter fiscal 2026 earnings, with consolidated revenue dropping to $13.8 million from $15.1 million the previous year. The company’s net income also decreased to $634,000, or $0.07 per share, down from $2.4 million, or $0.25 per share. Despite this, Craig-Hallum initiated coverage of Frequency Electronics with a Buy rating and a price target of $43.00, emphasizing the company’s expertise in atomic clocks and satellite timing solutions. Meanwhile, Freedom Capital Markets adjusted its price target for the company to $33.00, citing weaker-than-expected performance in U.S. commercial and government satellite programs. Additionally, Craig-Hallum noted that Frequency Electronics could benefit from potential increased Department of Defense spending on missile production. The U.S. is considering boosting missile production, potentially positioning the company for growth in this area. These developments highlight the mixed outlook for Frequency Electronics amidst recent financial challenges and potential opportunities.

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