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WALTHAM, MA – Pegasystems Inc . (NASDAQ:PEGA), a leading provider of business process management software with a market capitalization of $6.5 billion, has updated its executive compensation plan, according to a recent SEC filing. The company, which maintains a healthy gross profit margin of 74%, has updated its executive compensation plan amid strong financial performance, with InvestingPro data showing consistent profitability over the last twelve months. The Compensation Committee of the company’s Board of Directors approved the 2025 base salaries and target incentive percentages for its executive officers on Monday, as detailed in the company’s latest 8-K report.
The report, filed on March 7, 2025, outlines the compensation structure under the Section 16 Officer/ALT Member Corporate Incentive Compensation Plan (the “Incentive Plan”). The total target incentive payments for the executive officers are set at $1,677,500 and £193,000. Additionally, Leon Trefler, Chief of Clients and Markets, and John Higgins, Chief of Client & Partner Success, have the potential to earn sales commissions of $450,000 and £225,000, respectively.
The incentive plan is designed to align the interests of the executive officers with those of the shareholders and to incentivize performance that contributes to the company’s success. According to InvestingPro analysis, PEGA has demonstrated solid financial health with a return on equity of 21% and maintains a moderate debt level, with a debt-to-equity ratio of 0.94. The specifics of the 2025 base salaries, target incentive plan, and other bonus payments for the executive officers are included in Exhibit 99.1 of the 8-K report.
This adjustment in executive compensation comes as part of Pegasystems’ ongoing efforts to maintain competitive pay structures and reward effective leadership. The company, headquartered at 225 Wyman Street, Waltham, MA, is known for its advanced software solutions that help organizations optimize their operations.
Investors and interested parties can refer to the full details of the incentive plan in the Exhibit 99.1 attachment to the company’s Form 8-K, which was previously filed on February 12, 2025, and is incorporated by reference.
The adjustments to the executive compensation are effective as of March 4, 2025, and reflect Pegasystems’ commitment to its executive leadership team amidst the evolving marketplace. The company, listed on the NASDAQ Global Select Market under the ticker symbol (NASDAQ:PEGA), continues to focus on delivering innovative software solutions to its clients worldwide. With revenue growth of 4.5% in the last twelve months and analysts expecting continued profitability this year, investors seeking deeper insights can access comprehensive analysis through InvestingPro, which offers exclusive access to over 30 additional financial metrics and expert insights for PEGA, along with detailed Pro Research Reports available for over 1,400 US stocks.
In other recent news, Pegasystems reported strong fourth-quarter 2024 earnings, surpassing Wall Street forecasts with an earnings per share (EPS) of $1.61, exceeding the expected $1.47. Revenue also outperformed expectations, reaching $490.83 million against a forecast of $468.36 million. Despite these positive results, the company’s Pega Cloud Net New Annual Contract Value (NNACV) fell short of analyst projections, marking the weakest fourth-quarter addition in several years. Barclays (LON:BARC) analysts adjusted their outlook on Pegasystems, reducing the price target to $97 while maintaining an Equalweight rating, citing mixed outcomes in the earnings report. Meanwhile, DA Davidson raised the price target on Pegasystems shares to $90, maintaining a Neutral rating, highlighting a slowdown in Annual Contract Value (ACV) growth momentum. Pegasystems announced a proposed two-for-one stock split, aiming to enhance liquidity and attract more investors. The company projects a 12% year-over-year growth in ACV for 2025, with free cash flow expected to increase by 30% to $440 million. The emphasis on Pegasystems’ re-investment strategy and the evolution of its business model were central to DA Davidson’s assessment, reflecting a careful consideration of Pegasystems’ financial metrics and market position.
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