zSpace executives receive salary increases

SAN JOSE, CA - zSpace, Inc. (NASDAQ:ZSPC), a company specializing in prepackaged software services with a market capitalization of $457 million, has announced salary increases for its top executives, effective March 1, 2025. The company’s stock has shown strong momentum, gaining nearly 19% in the past week, though according to InvestingPro analysis, the stock appears overvalued at current levels. The decision, detailed in a recent SEC filing, was made by the Board of Directors on February 13, 2025, following recommendations from the Compensation Committee and an independent consultant’s analysis.

The Board’s review focused on aligning compensation with the median of peer companies in the public sector. As a result, Paul Kellenberger, the Chief Executive Officer, will see his annual base salary rise to $500,000, marking a 25% increase. This decision comes as InvestingPro data reveals the company faces challenges, with analysts forecasting a sales decline and potential losses this year. (Unlock 8 more exclusive InvestingPro Tips for ZSPC) Similarly, Chief Financial Officer Erick DeOliveira will receive a 33.3% increase, bringing his salary to $400,000. Michael Harper, Chief Product, Engineering, and Marketing Officer, will also have his salary adjusted to $400,000, a 23% increase, while Chief Sales Officer Ron Rheinheimer will get a 20% raise to $300,000.

This move comes as part of zSpace’s efforts to remain competitive within the industry by offering compensation packages that reflect the market standard. The company, incorporated in Delaware and headquartered in San Jose, California, is recognized for its contributions to the software services sector under the SIC code 7372.

zSpace’s commitment to maintaining a competitive edge in talent retention is evident in these adjustments. The company has positioned itself to continue its growth trajectory by ensuring that its leadership team is compensated in line with industry standards.

The information provided in this article is based on a press release statement filed with the SEC. While the company maintains a moderate debt level, InvestingPro analysis indicates short-term obligations exceed liquid assets, with a current ratio of 0.5, suggesting potential liquidity challenges ahead.

In other recent news, zSpace Inc. has made notable advancements with the launch of its zSpace Imagine Learning Solution, an AR/VR laptop system specifically designed for elementary education. This new system aims to deliver an immersive learning experience without the need for traditional headsets or 3D glasses, broadening the company’s reach in the educational technology sector. zSpace’s CEO, Paul Kellenberger, emphasized their commitment to enhancing educational engagement through this innovative offering. The Imagine Learning Solution includes AR/VR laptops, interactive software, and curriculum-aligned lessons, all aimed at improving students’ understanding of essential subjects like math and science.

Additionally, Roth/MKM initiated coverage on zSpace with a Buy rating and set a price target of $20.00 per share. The firm sees significant growth potential for the company, driven by an expanding market and upcoming product launches, including a new laptop and software content for career training. Analysts from Roth/MKM have highlighted the company’s revitalized sales team and its focus on K-12 education and career readiness training as key factors in its positive outlook. Investors are closely monitoring zSpace as it continues to innovate and expand its product offerings.

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