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In a recent update from Plug Power (NASDAQ:PLUG) Inc., a notable shift in executive compensation was disclosed. On February 27, 2025, the Compensation Committee of Plug Power approved a program allowing executives to receive a significant portion of their 2025 compensation in the form of common stock. This development comes as the company’s stock has experienced significant volatility, with InvestingPro data showing a 25.8% decline year-to-date and the stock currently trading at $1.59.
Under this new executive compensation program, eligible executives have the option to convert 25%, 50%, or 75% of their earned base salary and annual cash incentive bonus for the fiscal year 2025 into shares of Plug Power’s common stock. These shares will be issued under the company’s 2021 Stock Option and Incentive Plan, as amended.
The distribution of shares for the base salary component will occur on the last trading day of each month in 2025. The number of shares issued will be calculated by dividing the elected portion of the base salary by the trailing 30-day average closing price of Plug Power’s stock on the NASDAQ Capital Market, rounding up to the nearest whole share.
Similarly, shares corresponding to the annual cash incentive bonus will be issued on the date the bonuses are paid out, but no later than March 15, 2026. The calculation for these shares will also be based on the trailing 30-day average closing price on the NASDAQ Capital Market.
This program is designed to align with Rule 10b5-1 and Rule 16b-3 of the Securities Exchange Act of 1934, ensuring compliance with insider trading laws and executive compensation regulations. Once an executive makes their election, it is irrevocable for the entirety of 2025, with no changes permitted post-enrollment. All common stock issued via this program will be fully vested upon issuance.
The enrollment period for this program has concluded, and it has been disclosed that Andrew Marsh, CEO of Plug Power, has chosen to receive half of his 2025 Compensation in company stock. According to InvestingPro analysis, the company currently appears undervalued based on its Fair Value assessment, despite facing challenges with cash burn rates and weak profit margins. For deeper insights, investors can access the comprehensive Pro Research Report, which provides detailed analysis of Plug Power among 1,400+ US stocks.
This strategic move by Plug Power and its executives underscores a commitment to aligning the interests of leadership with those of the shareholders. The decision by the CEO to receive stock instead of cash reflects confidence in the company’s future performance and growth potential.
This information is based on a press release statement from Plug Power Inc. filed with the SEC.
In other recent news, Plug Power Inc. has announced a $280 million stock offering, pricing 46.5 million shares of common stock and pre-funded warrants for an additional 138.9 million shares. This move is expected to bolster the company’s financial position, with proceeds supporting working capital and general corporate purposes. CEO Andy Marsh has opted to receive half of his salary in company stock, signaling his confidence in the company’s future. On the analyst front, Jefferies has revised its price target for Plug Power to $1.70, maintaining a Hold rating, while Craig-Hallum adjusted its target to $2.50 but kept a Buy rating. Meanwhile, TD Cowen has reiterated a Buy rating with a $4.00 price target, citing Plug Power’s strategic focus on core areas and cost optimization efforts, including Project Quantum Leap. The company is targeting improved profitability by the end of 2025, focusing on material handling, electrolyzers, and fuel production. Additionally, Plug Power’s expansion plans include increasing its hydrogen production capacity, with new facilities in Louisiana and Texas slated to come online in the coming years. These developments highlight Plug Power’s ongoing efforts to strengthen its position in the hydrogen economy.
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