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LSI Industries Inc. (NASDAQ:LYTS) announced Monday that its Board of Directors’ Compensation Committee approved both a fiscal year 2026 Long Term Incentive Plan (LTIP) and a Short Term Incentive Plan (STIP) for company executives and certain employees, according to a statement based on a recent SEC filing.
Effective August 20, the LTIP provides for share-based awards under the company’s 2019 Omnibus Award Plan. Under the new LTIP, named executive officers were granted restricted stock units (RSUs) and performance stock units (PSUs) tied to pre-established performance objectives over a three-year period ending June 30, 2028.
Targets under the LTIP for key executives are as follows:
- James Clark, CEO: $1,500,000 target, 31,088 RSUs, 46,632 PSUs
- James Galeese, EVP & CFO: $540,000 target, 11,192 RSUs, 16,788 PSUs
- Thomas Caneris, EVP Human Resources and General Counsel: $440,000 target, 9,119 RSUs, 13,679 PSUs
Performance criteria for the PSUs are based on the company’s cumulative adjusted EBITDA and return on net assets (RONA) over the cycle. Each metric accounts for 50% of the award. Payouts range from 0% to 200% of the award target, depending on performance versus established benchmarks. RSUs vest in equal installments over three years, while PSUs vest based on performance achievement.
The plan includes provisions for vesting and forfeiture, change in control, and tax withholding. Award recipients generally must remain employed through the payout date, with exceptions for certain circumstances.
The STIP, also adopted August 20, covers annual cash bonuses for executives and other employees for the fiscal year ending June 30, 2026. Bonus targets for executives are set at 80% of base salary for the CEO and 50% for both the CFO and EVP Human Resources and General Counsel. Awards are based on company performance against adjusted EBITDA (80% weight) and net sales (20% weight) targets, with payouts ranging from 0% to 200% of the award target.
Both plans specify that awards are non-transferable except by will or applicable law, and are subject to tax withholding. Payment is contingent on continued full-time employment, with exceptions for certain termination events.
This summary is based on a statement from LSI Industries’ recent SEC filing. With a market capitalization of $669 million and revenue growth of nearly 18% in the last twelve months, LSI Industries continues to show promising momentum. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with 12 additional exclusive ProTips and comprehensive financial metrics available to subscribers through the platform’s detailed Pro Research Report.
In other recent news, LSI Industries reported strong fourth-quarter fiscal 2025 earnings, surpassing market expectations. The company achieved an earnings per share (EPS) of $0.34, significantly beating the forecasted $0.22, marking a 54.55% surprise. Revenue for the quarter reached $155.1 million, exceeding projections of $138.89 million by 11.67%. This performance also represented a 20.2% increase year-over-year and a 17.0% sequential increase from the previous quarter. In light of these results, H.C. Wainwright reiterated its Buy rating on LSI Industries, maintaining a price target of $30.00. Additionally, Canaccord Genuity raised its price target for LSI Industries from $22.00 to $25.00, while maintaining a Buy rating. The firm based this target on marginal changes to its profitability estimates for the company. These developments reflect improved demand across LSI’s lighting and display solutions markets.
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