Traeger CEO’s compensation structure updated

Published 16/04/2025, 21:36
Traeger CEO’s compensation structure updated

Traeger, Inc. (NYSE:COOK), a household appliances manufacturer with annual revenue of $604 million, has updated the compensation agreement for its CEO, Jeremy Andrus, as disclosed in a recent SEC filing. According to the document filed on April 16, 2025, the company has entered into an Amended Side Letter with Andrus, modifying the terms of his compensation. InvestingPro data shows the company is currently trading at $1.49 per share, with analysis indicating the stock is undervalued based on its Fair Value assessment.

Effective January 1, 2025, Andrus’ annual base salary has been set at $750,000. Starting with the 2025 calendar year, he is also eligible for the company’s annual bonus programs, with a target bonus for 2025 at 150% of his base salary. This adjustment aligns the CEO’s compensation with the company’s performance incentives. While the company wasn’t profitable in the last twelve months, InvestingPro analysts expect net income growth in the coming year, with earnings forecasts showing potential profitability.

Furthermore, Andrus is now eligible to participate in Traeger’s Executive Change in Control Severance Plan. In the event of his termination, the severance payment will include an amount equal to 200% of his target bonus for the year of termination. Additionally, upon termination without cause, for good reason, or due to the company’s non-extension of the employment term, Andrus will be entitled to receive his annual base salary plus target bonus, a pro-rated target annual bonus for the year of termination, and a COBRA payment. The COBRA payment covers 18 months of health insurance premiums for him and his dependents, including a tax gross-up to offset any incurred tax liability.

The updated agreement emphasizes the company’s commitment to retaining its top executive by providing competitive compensation and severance benefits. The full details of the Amended Side Letter have been filed with the SEC and are incorporated into the 8-K report. With the next earnings report due on May 7, 2025, investors can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research reports.

This revision in the executive compensation package comes at a time when Traeger, Inc. continues to position itself in the household appliances sector. The information is based on a press release statement and provides a transparent view of the company’s executive compensation strategy.

In other recent news, Traeger Inc. reported its fourth-quarter 2024 earnings, exceeding expectations with an EPS of $0.01, surpassing the forecast of -$0.0015. The company’s revenue reached $169 million, marking a 3% increase year-over-year, with a significant 41% rise in adjusted EBITDA compared to the previous year. Traeger’s Grills segment demonstrated robust performance, showing a 30% year-over-year growth, while its Consumables segment also exceeded expectations. However, the Accessories division faced challenges, particularly with decreased sales of the MEATER product. Analysts from Canaccord Genuity maintained a Buy rating on Traeger but reduced the price target to $5 from $7, highlighting the company’s strong sales but noting cautious future guidance. Similarly, Jefferies adjusted its price target for Traeger to $2.25 from $2.75, retaining a Hold rating due to market uncertainties and strategic initiatives. Telsey Advisory Group kept a Market Perform rating with a steady price target of $2.50, acknowledging Traeger’s brand initiatives and product innovations but expressing caution regarding economic conditions. These developments reflect a mixed outlook for Traeger as it navigates market challenges and strategic opportunities.

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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