VOXX International Corp (NASDAQ:VOXX), a leading player in the wholesale electronic parts and equipment industry, announced on Monday the extension of employment agreements for key executives. The contracts for CEO/President Patrick M. Lavelle and Senior V.P., CFO, and COO Loriann Shelton have been amended to extend through February 28, 2026.
The amendments, effective from November 11, 2024, maintain Mr. Lavelle's annual compensation at $1,000,000, split between cash and share grants, and Ms. Shelton's at $550,000, with a similar structure. Notably, both executives are set to receive lump-sum payments in the event of a Change in Control Event, amounting to $1,000,000 for Mr. Lavelle and $550,000 for Ms. Shelton.
The company disclosed that if a Change in Control Event occurs, both executives are entitled to resign with 180 days' notice and receive additional compensation. Mr. Lavelle and Ms. Shelton could also opt for their respective severance payments to be distributed over 12 or 24 months.
Additionally, the amendments include a clause for Ms. Shelton, providing a $300,000 bonus if a Change in Control Event does not take place by March 1, 2025, contingent upon a qualifying separation from the company.
The details of these amendments will be filed with the company’s Form 10-Q for the quarter ending November 30, 2024. This move signifies VOXX's commitment to retaining its top management and preparing for potential changes in the company's ownership structure.
InvestingPro Insights
As VOXX International Corp (NASDAQ:VOXX) extends its executive contracts, recent financial data from InvestingPro sheds light on the company's current position. VOXX's market capitalization stands at $152.81 million, reflecting its size in the wholesale electronic parts and equipment industry. The company's revenue for the last twelve months as of Q2 2025 was $427.49 million, with a notable revenue decline of 15.37% over the same period.
InvestingPro Tips highlight some key aspects of VOXX's financial health. The company's liquid assets exceed its short-term obligations, which could provide some financial flexibility as it navigates potential changes. However, VOXX was not profitable over the last twelve months, and analysts do not anticipate profitability this year. This context adds importance to the executive retention strategy outlined in the contract extensions.
Interestingly, despite these challenges, VOXX has shown a strong return over the last three months, with a price total return of 163.12%. This recent performance might indicate investor optimism about the company's future prospects or potential strategic changes.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 7 more InvestingPro Tips available for VOXX, providing a deeper understanding of the company's financial position and market performance.
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