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Moelis & Co (NYSE:MC) has approved a significant retention grant for its Chairman and CEO, Ken Moelis, aiming to secure leadership continuity. The Compensation Committee of the investment advisory firm decided on Monday to award profits interest limited partnership units worth $25 million to Mr. Moelis, which will vest on February 13, 2029, provided he remains with the company. This move reflects the company’s intention to maintain stable leadership and acknowledges Mr. Moelis’ contributions to the firm’s long-term shareholder value.
The granted units, not part of Mr. Moelis’ annual compensation for 2024, come with restrictions. Mr. Moelis cannot sell any of the units until one year after they vest, ensuring his interests align with the company’s long-term performance. The number of units will be determined by the average share price of Moelis & Co’s Class A common stock over a five-day trading period starting Wednesday.
This decision comes as the company recognizes the importance of consistent and disciplined leadership. The retention award is based on the company’s 2024 Omnibus Incentive Plan and is further detailed in the attached Retention Award agreement referenced in the SEC filing. This strategic step by Moelis & Co underscores the value placed on experienced leadership in steering the company’s future. The information is based on a press release statement.
In other recent news, Moelis & Company reported a substantial increase in its Q4 and full-year revenues, with the fourth quarter seeing a significant 104% rise from the same period in the previous year. The investment banking advisory firm also announced an increase in its quarterly dividend to $0.65 per share, marking an 8% rise. This move reflects the firm’s strong financial performance and its commitment to returning value to shareholders.
On a related note, Keefe, Bruyette & Woods, a financial services firm, upgraded its price target on Moelis & Company’s shares to $92.00 from $86.00, maintaining an Outperform rating. This adjustment follows Moelis’ better-than-expected revenue figures, which exceeded the firm’s estimates by over $100 million. Keefe, Bruyette & Woods analysts highlighted the positive aspects of Moelis’ earnings call and expressed continued confidence in the company.
In other developments, Moelis & Company announced the retirement of board member John Allison, effective immediately. Allison’s departure concludes a decade of service on the company’s Board of Directors. The company has not yet indicated a successor or provided details on any changes to the board’s composition following Allison’s departure. These are the recent developments regarding Moelis & Company.
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