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BEDFORD, MA – iRobot Corp (NASDAQ:IRBT), a leader in consumer robots currently trading near its 52-week low at $1.83, announced changes to its board of directors’ compensation structure on Monday, according to a recent SEC filing. The company’s board approved a new cash retainer for Strategic Process Transaction (JO:NTUJ) Committee members and altered the non-employee director equity compensation program. According to InvestingPro data, the company faces significant challenges with rapid cash burn and declining revenues.
Effective immediately, each member of the Strategic Process Transaction Committee will receive a quarterly cash retainer of $12,500. Additionally, starting from June 6, 2025, the annual restricted stock unit award for board service will be replaced with a cash payment of $200,000, payable in quarterly installments. These changes come on top of the existing cash fees for non-employee directors for their service on the board and its committees, as detailed in iRobot’s Definitive Proxy Statement filed on March 31, 2025. The shift to cash-based compensation comes as the company’s stock has declined over 75% year-to-date.
The move to increase director compensation aligns with the company’s strategy to attract and retain experienced professionals to guide iRobot through its ongoing strategic processes. With an InvestingPro Financial Health score of "Weak" and revenue declining by 23.4% in the last twelve months, experienced leadership is crucial. The adjustment to a cash-based compensation model for board members may reflect a broader trend in corporate governance, where companies seek to simplify the structure of director remuneration.
iRobot, headquartered in Bedford, Massachusetts, is known for its innovative home cleaning solutions, including its popular line of Roomba robotic vacuum cleaners. The company’s commitment to leadership in the field of home robotics is underscored by its attention to corporate governance and strategic oversight.
Investors and stakeholders can find more details about these changes in the company’s SEC filing. This announcement is based on a press release statement.
In other recent news, iRobot Corp reported a significant downturn in its financial performance. The company announced a fourth-quarter revenue of $172 million, a sharp decline from $307.5 million in the previous year, missing analyst expectations. This revenue drop was attributed to increased promotional spending and competitive challenges. The company also reported a fourth-quarter EPS loss of $2.06, worsening from the $1.82 loss per share in the same period last year. For the full year 2024, iRobot’s revenue fell to $681.8 million from $890.6 million in 2023. Additionally, iRobot issued a going concern warning due to uncertainties regarding new product launches, consumer demand, and macroeconomic conditions. In response to these challenges, the company has reduced its workforce by over 50% and is reviewing strategic alternatives, including refinancing debt or exploring a potential sale. In leadership news, Dr. Ruey-Bin Kao will not seek re-election to iRobot’s Board of Directors, a change that will take effect at the annual meeting of stockholders in 2025.
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