Willdan Group , Inc. (NASDAQ:WLDN), a provider of professional technical and consulting services, has entered into new employment agreements with top executives, according to a recent SEC filing. The agreements, effective from November 13, 2024, cover the company's President and CEO Michael Bieber, Executive Vice President and CFO Creighton K. Early, and Executive Vice President and General Counsel, Micah Chen.
Under the terms of the new contracts, these officers are considered at-will employees but are entitled to severance benefits in case of involuntary termination. Michael Bieber's annual base salary is set at $574,891.20, and he could earn a performance bonus of up to 200% of his annual base salary
In case of termination, Bieber is eligible for a lump sum equivalent to two years' salary, 18 months of paid health benefits, and a prorated performance bonus if applicable.
Creighton K. Early and Micah Chen have similar arrangements with annual base salaries of $436,758.40 and $394,076.80, respectively. Both are eligible for a maximum performance bonus of 150% of their base salaries and, upon involuntary termination, a severance package equal to one year's salary, 12 months of health benefits, and a prorated performance bonus if earned.
The employment agreements also address equity awards, with those granted before November 13, 2024, being governed by the original terms, and any granted afterward following the new agreements' provisions.
The changes in executive compensation come as part of Willdan's efforts to align its leadership team's interests with those of shareholders and ensure stability in its executive ranks.
The information contained in this article is based on a press release statement.
In other recent news, Willdan Group reported record financial results for the third quarter. The company's contract revenue rose by 19% year-over-year to $158 million, while adjusted EBITDA grew by 50% to $15.2 million. Adjusted earnings per share also saw a significant increase, nearly doubling to $0.73.
These positive results led Willdan Group to raise its full-year financial targets, now expecting net revenue between $285 million and $295 million, and adjusted EBITDA of $52 million to $54 million.
In addition, the company has been expanding its workforce, with over 1,700 employees now on board. Among the significant contracts won by Willdan Group are a $103 million project with Clark County School District and a $9 million contract with the New York Power Authority. The company's acquisition of Enica Engineering is also expected to add $10 million in revenue in 2024.
These developments are part of Willdan Group's growth strategy, which includes a focus on energy efficiency and decarbonization. The company's LoadSEER software is being enhanced with AI to support future growth.
With a strong Q4 expected, particularly in utility revenue, Willdan Group remains focused on leveraging state and local government contracts and utility projects to drive growth. The company's next earnings announcement is eagerly anticipated in March 2024, where it will also outline its 2025 guidance.
InvestingPro Insights
Willdan Group's recent executive compensation agreements align with the company's strong financial performance. According to InvestingPro data, Willdan has experienced significant growth, with a 23.47% increase in revenue over the last twelve months as of Q3 2024, reaching $577.41 million. This growth is complemented by a robust EBITDA growth of 48.57% over the same period.
InvestingPro Tips highlight that Willdan has been profitable over the last twelve months and is expected to maintain profitability this year. The company's stock has shown impressive performance, with a 99.14% price total return over the past year. These factors suggest that the new executive compensation packages, which include performance-based bonuses, are designed to incentivize continued growth and shareholder value creation.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights on Willdan Group, with a total of 9 tips available for further exploration.
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