International Paper makes key executive pension change

Published 14/05/2025, 11:44
International Paper makes key executive pension change

International Paper Co. (NYSE:IP), a leading global producer of renewable fiber-based packaging, pulp, and paper products, with a market capitalization of $25.3 billion and an impressive 55-year track record of consistent dividend payments, has amended its pension plan to facilitate a business divestiture. According to InvestingPro data, the company maintains a solid 3.85% dividend yield while generating nearly $20 billion in annual revenue. On Monday, the company’s Management Development and Compensation Committee approved Amendment No. 9 to the International Paper Company Pension Restoration Plan for Salaried Employees. This amendment will allow certain executives to continue accruing service time and early retirement eligibility post-divestiture.

The amendment specifically benefits Clayton R. Ellis, Senior Vice President of Global Cellulose Fibers, ensuring his pension accruals continue with the acquiring entity after the planned divestiture of International Paper’s global cellulose fibers business. Details of this amendment were included as Exhibit 10.1 in the current report. InvestingPro analysis indicates the company maintains a "Fair" overall financial health score, with particularly strong marks in profit and price momentum metrics.

In addition, at the annual meeting held on Monday, shareholders approved all proposed board directors and ratified the appointment of Deloitte & Touche LLP as the independent auditor for 2025. The non-binding resolution on executive compensation also passed, while a shareholder proposal regarding LGBTQIA+ Equity and Inclusion efforts did not receive approval.

The meeting saw a turnout of shareholders representing over 87% of the outstanding shares, reflecting active participation in the company’s governance. The detailed voting results for each director and proposal were disclosed in the report. For deeper insights into International Paper’s financial health and future prospects, including exclusive analyst forecasts and comprehensive valuation metrics, explore the full company analysis available on InvestingPro.

This information is based on an SEC filing by International Paper Co.

In other recent news, International Paper reported its first-quarter earnings for 2025, which showed a mixed performance. The company posted earnings per share (EPS) of $0.23, falling short of the forecasted $0.45, and its revenue of $5.9 billion also missed expectations of $6.48 billion. Additionally, Wells Fargo (NYSE:WFC) downgraded International Paper’s stock rating from Equal Weight to Underweight, citing concerns over deteriorating market fundamentals and the company’s ability to meet its 2025 financial guidance. The firm also reduced its price target to $40 and revised its earnings projections for the coming years.

International Paper has also announced plans to restructure its operations in the Rio Grande Valley, converting its Edinburg, Texas, sheet plant into a warehouse and enhancing its McAllen, Texas, facility. This restructuring aims to improve customer experience while maintaining a competitive cost structure. Furthermore, International Paper declared quarterly dividends on its common and preferred stock, reflecting its commitment to providing returns to investors. In 2025, the company strengthened its market position through the acquisition of DS Smith, focusing on the North American and EMEA regions. These developments highlight the company’s ongoing strategic initiatives amidst current market challenges.

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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