Willis Lease Finance Amends Executive Compensation Plan

Published 04/04/2025, 20:36
Willis Lease Finance Amends Executive Compensation Plan

Willis Lease Finance Corporation (NASDAQ:WLFC), currently trading at $136.93 and maintaining impressive gross profit margins of 91.5%, announced on Monday an amendment to the employment agreement with Charles F. Willis IV, which includes significant changes to his compensatory arrangements. According to InvestingPro data, the company has demonstrated strong revenue growth of 36% over the last twelve months, while trading at an attractive P/E ratio of 8.4. The Compensation Committee of the Board of Directors has canceled a stock option award and modified the vesting schedule for a restricted stock award previously granted to Mr. Willis.

According to the 8-K filing with the Securities and Exchange Commission, the company has canceled a non-qualified stock option to purchase up to 231,000 shares of Willis Lease Finance Corp ’s common stock, which was originally granted on March 19, 2025. This cancellation took effect on March 31, 2025, and the company has made no commitments to provide any substitute awards to Mr. Willis. The company’s financial position shows a debt-to-equity ratio of 4.13, indicating significant leverage, though its current ratio of 1.97 suggests adequate liquidity to meet short-term obligations.

Additionally, the amendment affected the vesting terms of a restricted stock award over 44,094 shares. Instead of being fully vested, the shares will now vest over a period of three years, with one-third vesting on each anniversary of the original grant date, subject to continued service with the company. This adjustment aligns with the terms of Willis Lease Finance Corp’s 2023 Incentive Stock Plan and the amended restricted stock bonus agreement.

In the event of termination of Mr. Willis’ employment, the amendment stipulates that any unvested shares will immediately vest if his departure is due to the company’s decision without cause, his own resignation for good reason, or due to death or disability. Conversely, if the termination is for cause or voluntary without good reason, any unvested shares will be forfeited.

This filing provides insight into the executive compensation strategies at Willis Lease Finance Corp and underscores the company’s adherence to its incentive plans and employment agreements. The information is based on a press release statement from the company, as detailed in the SEC filing.

In other recent news, Willis Lease Finance Corporation reported a strong financial performance for 2024, achieving record revenues of $569.2 million and a 127% increase in earnings before tax. Net income rose by 159% compared to the previous year, highlighting the company’s successful strategic initiatives. Additionally, Willis Lease expanded its credit facility to $1 billion, enhancing its financial flexibility. In another development, the company renewed its employment agreement with Charles F. Willis IV, extending his role as Executive Chairman of the Board, with a significant stock award included in the contract. Furthermore, Willis Lease announced a joint venture with Global Engine Maintenance to establish an engine test cell facility in Florida, aiming to address the shortage of such facilities in North America. The company also expanded its partnership with Air India Express through a sale and leaseback agreement for 26 CFM56-7B engines, building on a previous arrangement. These recent developments reflect Willis Lease’s ongoing efforts to strengthen its market position and operational capabilities.

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