Tutor Perini (NYSE:TPC) Corp, a prominent construction company, disclosed a leadership transition in a recent SEC filing. Michael F. Smithson, the former Executive Vice President of the Civil Group, finalized a separation agreement following his departure on June 21, 2024.
According to the filing, Smithson will receive a severance package that includes $1,050,000 in severance payments, equivalent to 14 months of his annual base salary, to be distributed over seven months. Additionally, he is entitled to a $900,000 cash payment, matching his target annual bonus for 2024, which will be paid when the company distributes bonuses to other executives. Smithson will also be reimbursed for COBRA premiums covering medical, dental, and vision benefits for himself and his dependents for up to 18 months.
The terms of the separation were agreed upon on Thursday, and the comprehensive details of the agreement will be included in Tutor Perini's forthcoming Quarterly Report on Form 10-Q for the quarter ending June 30, 2024. This report will be filed in accordance with the requirements set by the Securities and Exchange Commission.
Tutor Perini, headquartered in Sylmar, California, operates within the nonresidential building sector and is known for its significant construction projects. The company's shares are traded on the New York Stock Exchange under the ticker symbol NYSE:TPC.
In other recent news, Tutor Perini Corporation has been making significant strides in its financial performance and prospects. The company recently surpassed expectations with a 35% growth in consolidated revenue and substantial gains in operating margins and earnings per share. Furthermore, Tutor Perini maintains its 2024 earnings per share guidance of $0.85 to $1.10.
The company's subsidiary, Lunda Construction, secured a $53.6 million contract for the construction of the Kellogg/3rd Street Bridge in St. Paul, Minnesota. The project is scheduled to start in the third quarter of 2024 and is expected to be completed by the fall of 2027.
Analyst firms UBS and B.Riley upgraded Tutor Perini's stock, citing a recovery in earnings and improved financials. UBS raised the price target to $27.00, while B.Riley increased the price target to $26.00.
Tutor Perini also completed the redemption of $500 million in senior notes, financed through a new offering of $400 million senior notes due in 2029 and existing cash reserves. This strategic debt reduction and refinancing effort is part of Tutor Perini's broader strategy to manage its debt profile effectively.
Lastly, a leadership transition is on the horizon, with current President, Gary Smalley, set to succeed Ron Tutor as CEO in 2025. These are the recent developments in the financial trajectory of Tutor Perini Corporation.
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