Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
On March 12, 2025, Global Partners LP (NYSE:GLP), a leader in wholesale petroleum distribution with a market capitalization of $1.86 billion, disclosed new employment agreements with key executives, signaling a recommitment to its leadership team. According to InvestingPro data, the company has demonstrated strong momentum with a 29.5% return over the past six months, though it currently appears overvalued based on Fair Value analysis. The agreements, effective January 1, 2025, encompass terms through December 31, 2027, with provisions for potential extension to finalize renewal discussions.
The contracts, involving President and CEO Eric S. Slifka and executives Gregory B. Hanson, Mark Romaine, Sean T. Geary, and Matthew Spencer, establish annual base salaries ranging from $350,000 to $1,100,000. Additionally, the executives are eligible for discretionary cash bonuses, participation in short-term and long-term incentive plans, and standard company benefits. The company maintains a P/E ratio of 22.19x and generated $381.91 million in EBITDA over the last twelve months.
Performance-based incentives are tied to EBITDA and Distributable Cash Flow metrics, with the potential to earn 0-200% of target amounts. The agreements also outline severance terms, including lump-sum payments and continued insurance benefits under certain termination conditions.
In the event of termination without cause or under a "Constructive Termination," executives may receive up to 200% of their base salary and target incentive amounts, with Eric S. Slifka eligible for 300% following a change in control. Severance for non-renewal at term’s end includes similar lump-sum payments and STIP-related components.
The agreements contain confidentiality clauses extending two years post-employment and non-competition and non-solicitation clauses active for one year after employment ends. A "best of net" provision addresses potential excise taxes on parachute payments, ensuring the most favorable after-tax outcome for the executives.
This strategic move by Global Partners LP, detailed in their SEC filing, reinforces the company’s leadership structure and incentivizes executive performance aligned with financial targets. The company has maintained dividend payments for 20 consecutive years, currently offering a 5.4% yield. InvestingPro subscribers can access 8 additional key tips and a comprehensive Pro Research Report, providing deeper insights into GLP’s financial health and growth prospects.
In other recent news, Global Partners LP reported a decline in its Q4 2024 adjusted EBITDA to $97.8 million, down from $112.1 million in the same quarter of the previous year. The company’s adjusted distributable cash flow also decreased to $46.1 million from $58.8 million in 2023. Despite these setbacks, Global Partners achieved growth in its GDSO and wholesale margins, indicating resilience in its core operations. Additionally, S&P Global Ratings upgraded its outlook on Global Partners to positive, following the successful integration of liquid terminals acquired from Motiva Enterprises LLC and Gulf Oil Corp. This acquisition has diversified Global Partners’ cash flow stream and is expected to support continued deleveraging over the coming year. In another development, Stifel analysts downgraded Global Partners’ stock from Buy to Hold, citing lower-than-anticipated fourth-quarter earnings due to reduced fuel margins. However, they raised the price target to $56.00, reflecting a slight improvement in the valuation. Meanwhile, RoadFlex has partnered with Global Partners to expand its fuel discount network, enhancing savings and convenience for fleet management customers. This partnership integrates Global Partners’ service stations into RoadFlex’s fuel card program, offering discounted gasoline and diesel across multiple states.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.