LANSING, MI - Neogen (NASDAQ:NEOG) Corporation (NASDAQ:NEOG), a $2.8 billion market cap leader in the development and marketing of solutions for food and animal safety, announced a significant change in its executive leadership, as detailed in its latest 8-K filing with the Securities and Exchange Commission. According to InvestingPro data, the company maintains a strong financial position with a current ratio of 4.41, indicating robust liquidity to support its operations.
The company has appointed David Naemura as Chief Operating Officer, effective January 1, 2025, in addition to his ongoing role as Chief Financial Officer. While InvestingPro analysis shows the company wasn't profitable in the last twelve months, analysts expect a return to profitability this fiscal year, with forecasted earnings of $0.46 per share.
This strategic move comes ahead of the retirement of Doug Jones, the former Chief Operating Officer, whose retirement is set for February 28, 2025. Naemura, 55, who joined Neogen in November 2022, brings a wealth of experience from his previous roles, including Senior Vice President and Chief Financial Officer of Vontier Corporation and Chief Financial Officer of Gates Industrial (NYSE:GTES) Corporation.
In light of his expanded responsibilities, Naemura's compensation package has been adjusted to include a base salary of $650,000, an annual incentive cash bonus opportunity equal to his base salary, and annual long-term incentive equity awards valued at $2.5 million. These changes in compensation are effective from the start of this year and will be prorated for fiscal 2025.
Neogen is also creating a new position, Chief Commercial Officer, to enhance its focus on demand generation globally. This role will oversee the company’s commercial organization, including global sales, marketing, and communications functions.
Following his retirement, Jones will continue to work with Neogen in a part-time capacity to support the transition within the operations and commercial organizations. He will provide a minimum of forty hours per month of assistance until December 31, 2025, at a rate of $250 per hour. Jones will also be eligible for a prorated incentive cash performance bonus for fiscal year 2025, and his long-term incentive equity will continue to vest as scheduled.
In other recent news, Neogen Corporation reported a decline in Q1 revenues to $217 million, despite this, the company maintains its full-year guidance for 2025. The Food Safety segment generated $159 million, marking a 4% decrease, while the Animal Safety revenues stood at $58 million, down by 8%. The company's adjusted EBITDA was reported at $44 million, with a margin of 20.1%.
Neogen anticipates improved margins in the coming months, driven by higher revenue and operational efficiencies. The company also foresees a stronger performance in the second half of the fiscal year, with a slight improvement already observed in early Q2 compared to Q1.
In other recent developments, Neogen shareholders rejected the proposed executive compensation package but re-elected all nominated directors in a recent meeting.
The company's independent registered public accounting firm, BDO USA, P.C., was ratified for the fiscal year ending May 31, 2025. Leadership changes are underway at Neogen, including the planned retirement of COO Doug Jones in early 2025 and the search for a new Chief Commercial Officer.
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