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CHARLOTTE, NC – JELD-WEN Holding, Inc. (NYSE:JELD), a leading global manufacturer of building products with annual revenues of $3.9 billion, announced the approval of its 2025 Management Incentive Plan (MIP) by the Compensation Committee of the Board of Directors on Tuesday. According to InvestingPro data, the company is currently navigating challenging market conditions, with the stock down nearly 55% over the past year despite maintaining a healthy current ratio of 2.03. The new incentive program, aimed at motivating executive officers and key personnel, mirrors the structure of the company’s previous plan.
The MIP is designed to align the interests of the company’s leadership with those of its shareholders by offering annual cash bonuses. These bonuses are contingent on achieving both corporate and individual performance targets. The plan allows for awards up to 200% of the target amount set for participants, fostering an environment that encourages exceptional performance.
Under the MIP, the Compensation Committee, which operates under the Board’s authority, will identify eligible participants, including executive officers, employees, and consultants. The Committee is also responsible for setting performance criteria, goals, and the terms for payout of earned awards. Additionally, the Committee has the discretion to adjust or modify awards and performance objectives in response to extraordinary events or to account for unusual or non-recurring occurrences that impact the company or its financial statements.
The MIP grants the Committee and the Board the power to amend, modify, suspend, or terminate the plan, ensuring compliance with applicable legal requirements and the evolving needs of the company. With JELD-WEN’s earnings report due in just 6 days, InvestingPro analysis suggests a potential turnaround, forecasting positive net income growth and profitability for the current year. InvestingPro subscribers have access to 12 additional key insights about JELD-WEN’s financial health and market position.
The full details of the MIP have been outlined in Exhibit 10.1, which was included in the company’s recent SEC filing. This initiative reflects JELD-WEN’s commitment to driving corporate success and shareholder value through strategic executive compensation.
This update is based on a press release statement and provides a glimpse into JELD-WEN’s approach to executive compensation and performance-based incentives. Based on InvestingPro’s Fair Value analysis, the stock appears slightly undervalued at its current market price of $9.05, presenting an opportunity for investors interested in the building products sector. A comprehensive Pro Research Report, available to InvestingPro subscribers, offers detailed insights into JELD-WEN’s valuation metrics and growth prospects.
In other recent news, JELD-WEN Holding Inc. has been the subject of several significant developments. The company recently completed the sale of its Towanda, PA manufacturing facility to Woodgrain Inc. for $115 million, a move that is expected to decrease annual revenues by $150 million to $200 million and annual EBITDA by $25 million to $50 million over the next twelve months. Following this divestiture, Loop Capital Markets revised its financial outlook for JELD-WEN, reducing the price target from $12.00 to $10.00, while maintaining a hold rating on the stock. Similarly, RBC Capital Markets also reduced its price target for the company to $8 from the previous $9 and maintained an underperform rating.
In addition to these financial adjustments, JELD-WEN also announced the departure of Kevin Lilly, Executive Vice President of Global Transformation. Lilly’s retirement benefits include separation payments and the continued vesting of restricted stock units, performance share units, and stock options granted to him in previous years. These recent developments reflect the strategic shift JELD-WEN is undertaking, as it navigates through financial adjustments, leadership changes, and ongoing transformation efforts.
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