Bullish indicating open at $55-$60, IPO prices at $37
National Research Corporation (NASDAQ:NRC), a commercial physical and biological research services firm with a market capitalization of $291 million and a "GOOD" Financial Health Score according to InvestingPro, has disclosed alterations to its executive compensation structure, aligning it more closely with shareholder interests. The company's stock has experienced significant pressure, declining nearly 67% over the past year. The changes, effective as of Sunday, April 3, 2025, include a significant stock grant and modified cash bonuses for certain officers, excluding the current and future CEOs.
Helen L. Hrdy, the Chief Operating Officer of National Research Corp, has been granted 100,000 shares of common stock, set to be issued on Thursday, April 7, 2025. These shares come with specific conditions, including transfer restrictions until the third anniversary of the grant date and a company repurchase option for $1.00 if Hrdy leaves the company for cause or without a good reason before this period. Post the third anniversary, only half of the shares may be transferred during Hrdy's tenure.
Additionally, Hrdy will receive a cash bonus equivalent to 66 2/3% of the value of the shares, based on the closing price of the company's stock the day before the grant date. If Hrdy is terminated without cause or resigns with good reason after the third anniversary, she is entitled to a year of continued salary payments. Her annual base salary remains unchanged at $400,000.
These compensation adjustments also apply to Andrew Monnich, Chief Corporate Development Officer. In light of the new compensation program, Hrdy and Monnich have forfeited their participation in the 2024 long-term cash incentive plan and any unvested performance-based options granted in January 2024. The company maintains strong operational efficiency with a gross profit margin of 60.2% and generates annual revenue of $143 million.
The company's board appointed Trent (NSE:TREN) Green as the incoming CEO, effective June 1, 2025, with changes to the executive compensation plan reflecting the strategic direction associated with his leadership. Michael D. Hays (LON:HAYS), the current CEO, assisted the Compensation and Talent Committee in reevaluating the executive compensation packages, but his compensation remains unaffected.
These decisions come as National Research Corporation positions itself for future growth and aims to foster a stronger alignment between executive interests and those of its shareholders. Trading at a P/E ratio of 12.1, InvestingPro analysis suggests the stock is currently undervalued, presenting potential opportunities for investors. The information is based on a press release statement filed with the SEC. For deeper insights into NRC's valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, explore the full Pro Research Report available on InvestingPro.
In other recent news, National Research Corporation (NRC Health) announced a quarterly cash dividend of $0.12 per share, payable on April 11, 2025, to shareholders of record by March 28, 2025. This decision underscores NRC Health's commitment to returning value to its shareholders and reflects confidence in the company's financial stability. Additionally, NRC Health has been ranked number one in Healthcare Experience Management in the 2025 Best in KLAS report, highlighting its leadership in the field. In another development, UC Health has adopted NRC Health's Market Insights and Community Insights solutions to enhance its understanding of patient needs and preferences. This partnership aims to utilize data-driven strategies to inform business decisions and improve patient care. NRC Health's tools gather feedback from over 300,000 consumers annually, providing valuable insights into consumer behaviors and expectations. Helen Hrdy, Chief Operating Officer at NRC Health, expressed enthusiasm for the collaboration, emphasizing the shared vision of enhancing human understanding in healthcare. These recent developments indicate NRC Health's ongoing efforts to transform the healthcare experience and support healthcare organizations in understanding patient and consumer needs.
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