World Acceptance execs forfeit performance shares

Published 20/12/2024, 21:32
World Acceptance execs forfeit performance shares

World Acceptance (NASDAQ:WRLD) Corporation (NASDAQ:WRLD), a personal credit institution currently trading at $111.05, announced on Monday that its Compensation and Stock Option Committee has approved the cancellation and forfeiture of certain performance-based restricted stock awards previously granted to executives, including the CEO, under the company's stock incentive plans. According to InvestingPro data, the company maintains a perfect Piotroski Score of 9, indicating strong financial health and operational efficiency.

The performance shares in question were subject to earnings-per-share (EPS) performance targets that, if met, would allow for vesting. The targets were part of the company's 2011 Stock Option Plan and 2017 Stock Incentive Plan.

However, during the second quarter of fiscal year 2025, the company determined that the higher EPS target of $20.45 was unlikely to be met, prompting a reversal of $18.5 million in previously recognized stock-based compensation. The company currently trades at an attractive P/E ratio of 7.34, with analysts expecting continued profitability in the coming year.

As a result, R. Chad Prashad, the President and Chief Executive Officer, consented to the termination of 10,000 of his performance shares tied to the $20.45 EPS target. These shares will be returned to the plan's reserve and are now available for future awards.

Additionally, the Committee granted service-based restricted stock awards to several named executive officers, which will vest on December 18, 2025, provided they remain with the company until that date.

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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