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Twin Hospitality Group Inc. (NASDAQ:TWNP), a casual dining company with a market capitalization of $253 million and annual revenue of $349 million, announced Friday that it entered into a written employment agreement with Kim Boerema, who joined the company as President and Chief Executive Officer on May 19. According to InvestingPro data, the company faces significant operational challenges, with its stock down over 75% in the past six months. The agreement, signed June 27, outlines key compensation terms and employment conditions, according to a statement based on a recent SEC filing.
Under the agreement, Mr. Boerema will receive an annual base salary of $450,000, subject to annual merit-based increases at the discretion of the board of directors. He is also eligible for an annual bonus of at least $250,000, with the final amount determined by the board. This compensation package comes at a crucial time for Twin Hospitality, which InvestingPro analysis shows is operating with a significant debt burden and rapidly burning through cash. Subscribers to InvestingPro can access 9 additional key insights about the company’s financial health.
The contract grants Mr. Boerema restricted stock units for 250,000 shares of Twin Hospitality Group’s Class A common stock and stock options for 50,000 shares. Both equity awards vest in equal annual installments over three years. Mr. Boerema will also receive a one-time relocation allowance of $50,000 for moving his primary residence to Dallas, Texas.
Additional benefits include participation in company benefit plans available to employees and 20 days of paid time off per 12-month period.
If Mr. Boerema’s employment is terminated without cause or if he resigns for good reason, he will be entitled to severance pay equal to 12 months of base salary and a pro-rated bonus for the year of termination, contingent upon signing a separation agreement and release of claims.
The employment agreement also contains non-competition and non-solicitation provisions. For 12 months following the end of his employment, Mr. Boerema is restricted from working for businesses that derive at least half of their revenue from casual dining restaurants with table service and a business model featuring an all-female wait staff, within 25 miles of any current or planned “Twin Peaks” branded restaurant. He is also restricted from soliciting company employees or certain business partners.
The company stated that the full employment agreement was filed as an exhibit to the SEC report. With a current ratio of 0.63 and total debt of $571 million, Twin Hospitality faces substantial financial challenges ahead. For detailed analysis and comprehensive insights, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Twin Hospitality Group Inc. reported its Q1 2025 earnings, revealing a 5.4% decrease in total revenue to $87.1 million compared to the previous year. The company faced a net loss of $12.1 million, widening from $9.2 million last year, although its Twin Peaks brand saw a 5.1% increase in system-wide sales. The company plans to open 3-4 new units in 2025 and aims for a $75-100 million equity raise. In a strategic move, Twin Hospitality entered an exchange agreement with FAT Brands Inc., canceling liabilities of $31,200,345 in exchange for 7,139,667 shares of Twin Hospitality’s Common Stock. Additionally, the company announced the appointment of Kim Boerema as the new CEO, bringing over 30 years of experience in the restaurant industry. Meanwhile, Michael Locey, the Chief Development Officer, announced his retirement effective June 6, 2025. These developments reflect Twin Hospitality’s ongoing efforts to navigate financial challenges and focus on strategic growth initiatives.
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