Tigo Energy revamps executive compensation plan

CAMPBELL, CA – Tigo Energy , Inc. (NASDAQ:TYGO), a semiconductor and related devices manufacturer with a market capitalization of approximately $62 million, announced changes to its executive compensation structure, including a new short-term incentive plan and amendments to employment agreements for top executives, based on a recent SEC filing. According to InvestingPro data, the company faces profitability challenges, with a net loss of nearly $63 million in the last twelve months.

On Monday, the company’s Compensation Committee approved an Executive Short Term Incentive Plan (STI Plan) for key executives, including named executive officers. The STI Plan allows for potential cash bonuses based on the company’s revenue and Adjusted EBITDA performance, along with individual performance objectives. For the bonuses to be paid out, Tigo Energy’s revenue and Adjusted EBITDA must reach at least 75% of their target goals.

The following day, Tigo Energy entered into amended employment agreements with its CEO, Zvi Alon, and CFO, Bill Roeschlein. These amendments outline the calculation of annual bonuses, extend severance benefits in the event of termination without cause or resignation for good reason following a change in control, and make other administrative changes.

Under the new agreements, Alon and Roeschlein would receive continued salary payments and health benefits for 24 and 18 months, respectively, if terminated without cause or if they resign for good reason in connection with a change in control. This is an increase from the 18 and 12 months of benefits they would receive under the same circumstances outside of a change in control.

The company’s filing indicates these changes aim to align executive compensation with performance and provide clarity on bonus calculations and severance terms. While InvestingPro analysis shows Tigo maintains a healthy current ratio of 3.12, indicating strong short-term liquidity, the platform’s data also reveals the company is quickly burning through cash. The full texts of the STI Plan and the amended employment agreements are included as exhibits in the SEC filing, which serves as the source for these updates.

Investors seeking deeper insights into Tigo’s financial health and executive compensation trends can access 12 additional exclusive ProTips and comprehensive financial metrics through InvestingPro’s advanced analytics platform.

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