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Linde announces executive retirement and agreement

Published 03/12/2024, 10:06
Linde announces executive retirement and agreement
LIN
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Linde PLC (NYSE:LIN), a leader in industrial gases and engineering with an impressive $33.02 billion in revenue over the last twelve months, disclosed in a recent SEC filing that John Panikar, previously Executive Vice President-APAC, will retire on March 31, 2025.

As highlighted by InvestingPro, Linde maintains a strong financial health score of GOOD, reflecting its position as a prominent player in the Chemicals industry.

The announcement came through a Form 8-K filed on Monday, which also detailed a Retirement Agreement between Panikar and Linde Inc., Linde PLC's subsidiary.

According to the statement, Panikar's role as an executive officer concluded on November 1, 2024, but he will continue to work in a non-executive capacity until his retirement date. During this interim period, Panikar will retain his annual salary of $700,000 and remain eligible for standard employee benefits and a potential variable compensation cash bonus for 2024.

Upon retirement, Panikar will receive a severance package as outlined in the Retirement Agreement, in place of any other severance benefits. The package includes an $525,000 severance benefit paid in installments, an additional $235,658 lump sum, and a severance benefit equal to his target variable cash compensation of $665,000, adjusted by the company's 2025 performance, to be paid by March 15, 2026.

Additionally, Panikar and his dependents will be eligible for subsidized COBRA health plan benefits until the end of 2025 or until he is no longer eligible for COBRA.

The filing also reiterated Panikar's commitment to his Nondisclosure, Nonsolicitation, and Noncompetition Agreement with Linde, which includes confidentiality and non-compete clauses effective for two years post-employment.

The company's strong market position is evidenced by its robust EBITDA of $12.54 billion and consistent dividend payments, having raised its dividend for 33 consecutive years according to InvestingPro data.

Linde PLC's stock, traded on the Nasdaq Stock Market, may be influenced by this high-level executive transition, although the company has not provided any guidance on the succession plan for Panikar's role. Currently trading at $457.12, with a 52-week range of $396.07 to $487.49, the stock has demonstrated relatively low volatility.

For deeper insights into Linde's valuation and future prospects, investors can access comprehensive analysis through InvestingPro's detailed research reports, which offer expert analysis on over 1,400 US stocks. This information is based on a press release statement filed with the SEC.

In other recent news, Linde PLC, a global leader in industrial gases, has reported noteworthy developments in its operations and management. The company announced an executive leadership transition with John Panikar, Executive Vice President-APAC, set to retire in 2025, and Binod Patwari stepping in as Senior Vice President-APAC from November 2024. This change was disclosed in a recent 8-K filing with the Securities and Exchange Commission.

In terms of financial performance, Linde reported a 2% increase in sales to $8.4 billion in their latest earnings call, largely due to project activity and demand for liquefied natural gas infrastructure. The company also secured a substantial $2 billion contract with Dow Chemical (NYSE:DOW), pushing its project backlog to a record high of $10 billion.

For Q4 2024, Linde anticipates an earnings per share (EPS) of $3.86 to $3.96, and forecasts a full-year EPS of $15.40 to $15.50, indicating a 9-10% growth.

On the analyst front, BMO Capital Markets expressed confidence in Linde by raising its price target for the company to $507 and maintaining its Outperform rating. These recent developments highlight Linde's strategic focus, operational discipline, and commitment to growth and shareholder value.

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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