graham corp updates executive incentive plans

Published 06/06/2025, 13:18
graham corp updates executive incentive plans

Graham Corporation (NYSE:GHM), a company currently valued at $450 million and maintaining strong financial health according to InvestingPro analysis, announced changes to its executive compensation plans for the fiscal year ending March 31, 2026, according to a recent SEC filing. The company has demonstrated robust performance with a 58% return over the past year and maintains a solid balance sheet with minimal debt. The company’s Compensation Committee has renewed and amended its Annual Long-Term Incentive Award Plan for Senior Executives. The plan includes grants of time-vesting restricted stock units (RSUs) and performance-vesting restricted stock units (PSUs) under the 2020 Graham Corporation Equity Incentive Plan.

The RSUs will vest in three equal parts on the first three anniversaries of the grant date, contingent on continued employment. The PSUs will vest on the third anniversary, based on Graham’s three-year average return on invested capital and cumulative revenue metrics. The PSUs require continued employment with the company for vesting. With revenue growing at 11.2% and a return on invested capital of 7%, InvestingPro data suggests the company is executing well on its strategic objectives. InvestingPro subscribers have access to 13 additional key insights about Graham Corporation’s performance and valuation metrics.

The Long-Term Incentive Percentage for each executive is as follows: CEO Daniel J. Thoren at 50%, President and COO Matthew J. Malone at 125%, CFO Christopher J. Thome at 70%, and Vice President Alan E. Smith at 60%. The number of RSUs and PSUs awarded is calculated based on 50% of each executive’s base salary and the NYSE closing price of Graham’s common stock on the grant date.

Additionally, Graham Corporation has amended its Annual Executive Cash Bonus Program. The target bonus levels, based on achieving 100% of company and personal objectives, are set at 50% of base salary for Thoren, 100% for Malone, and 50% for both Thome and Smith. Executives may earn between 0% and 200% of their target bonus, depending on performance.

The filing also detailed stock-based grants to non-employee directors, with each receiving 1,956 RSUs. The RSUs were calculated by dividing $77,000 by the closing price of Graham’s stock on June 2, 2025, which was $39.36 per share.

These updates are part of the company’s efforts to align executive compensation with its long-term performance goals. The information is based on a press release statement from Graham Corporation’s SEC filing. Analysts maintain a positive outlook on the company, with price targets ranging from $51 to $55, suggesting potential upside from current levels. For comprehensive analysis and detailed insights, investors can access Graham Corporation’s full Pro Research Report, available exclusively on InvestingPro, along with reports for 1,400+ other US equities.

In other recent news, Gevo (NASDAQ:GEVO), Inc. announced the addition of James J. Barber, Ph.D., to its Board of Directors. Dr. Barber brings extensive experience in executive leadership and board roles across various sectors, including fuels, chemicals, and advanced materials. This appointment is part of Gevo’s strategy to bolster its leadership team as it pursues growth in the renewable energy sector. Gevo’s CEO, Dr. Patrick R. Gruber, highlighted Dr. Barber’s technical expertise and strategic acumen as valuable assets for the company’s ambitions. Dr. Barber also serves on the board of Graham Corporation, where he chairs the Compensation Committee and participates in other key committees. Gevo operates with a focus on sustainable energy solutions, including the production of synthetic aviation fuel and chemicals from renewable resources. The company emphasizes transparency and accountability in its supply chain sustainability attributes through its subsidiary, Verity. This development reflects Gevo’s ongoing efforts to strengthen its strategic objectives in the renewable energy landscape.

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