Primoris Services outlines new executive compensation

Published 26/03/2025, 22:14
Primoris Services outlines new executive compensation

In a recent filing with the Securities and Exchange Commission (SEC), Primoris Services Corporation (NYSE:PRIM) disclosed the approval of compensation terms for two key executives. The company, which has delivered an impressive 58% return over the past year according to InvestingPro data, announced the Board of Directors’ approval of compensatory arrangements on March 21, 2025, for David King and Jeremy Kinch, who have taken on roles as Interim President and CEO, and Chief Operating Officer, respectively.

David King’s compensation package includes a $950,000 annual base salary and restricted stock units (RSUs) valued at $1,250,000, which are contingent upon his continued service through the first anniversary of the grant. Additionally, he is eligible for a discretionary bonus with a target of 120% of his base salary, based on various performance metrics set by the Board.

Jeremy Kinch’s offer letter stipulates a $600,000 annual base salary and the possibility of long-term incentive plan (LTIP) awards under the company’s 2023 Equity Incentive Plan, with a 2025 LTIP award of $1,000,000. His bonus eligibility is in line with the company’s Annual Incentive Plan, targeting 100% of his annual base salary.

These executive compensation arrangements are part of Primoris’s strategy to align leadership incentives with the company’s performance and goals. The detailed terms of these arrangements are available in the exhibits attached to the SEC filing.

Primoris Services Corporation, a Dallas, Texas-based company, specializes in water, sewer, pipeline, and power line construction. The company’s recent executive appointments and compensation adjustments reflect its ongoing efforts to strengthen leadership and drive growth.

The information reported is based on a press release statement and the full text of the offer letters and employment agreement, which are included in the SEC filing.

In other recent news, Primoris Services Corporation has reported strong financial results for the fourth quarter of 2024, with earnings and revenue surpassing analyst expectations. The company posted an adjusted earnings per share of $1.13, exceeding DA Davidson’s estimate of $0.75 and the consensus figure. Revenue climbed 15% to $1.7 billion, outperforming forecasts from both DA Davidson and consensus estimates. Primoris also demonstrated significant cash flow, with operating cash flow reaching $298.3 million and free cash flow at $270.0 million.

In a related development, Jefferies has adjusted its price target for Primoris to $76, maintaining a Buy rating, following a recent CEO transition. The firm emphasized the company’s strategic position in the engineering and construction sector, particularly in renewables and energy infrastructure. Meanwhile, KeyBanc Capital Markets revised its price target to $90 from $96, keeping an Overweight rating, reflecting a positive outlook on Primoris’s growth in renewables, power delivery, and communications sectors.

Additionally, Primoris announced leadership changes, appointing David King as Interim President and CEO, with Jeremy Kinch promoted to Chief Operating Officer. The company’s Board expressed confidence in King’s ability to guide Primoris during this transition period. These developments, coupled with robust financial performance, have positioned Primoris Services Corporation for continued growth in the coming years, according to analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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