Avient Corporation (NYSE:AVNT), a specialist in plastics and advanced polymer materials, today disclosed the retirement of a key executive and the related compensatory arrangements. Michael Garratt, Senior Vice President and President of Color, Additives & Inks - EMEA, has decided to retire. The company's Board of Directors has agreed to continue the vesting of Mr. Garratt's outstanding long-term incentive awards post-retirement, as per the terms of those awards.
The arrangement, which includes an extension of Mr. Garratt's post-employment non-competition and non-solicitation covenants for an additional year, comes in exchange for a release of claims from Mr. Garratt. Additionally, he has committed to providing support during the transition period following his departure.
Avient, formerly known as PolyOne Corp, has its headquarters in Avon Lake, Ohio, and operates under the Industrial Applications and Services organization. The company ended the fiscal year on December 31, and as of the latest report, continues to be listed on the New York Stock Exchange.
Avient's announcement does not detail the reasons for Mr. Garratt's retirement nor the specifics of the transition plan. The company's business address and contact information remain unchanged, and it continues to operate in the SIC category of Plastics, Materials, Synth Resins & Nonvulcan Elastomers.
In other recent news, Avient Corporation has made significant strides, with its first-quarter earnings surpassing expectations and an increased outlook for the rest of 2024. The company's adjusted earnings per share came in at $0.76, outperforming guidance by $0.08, mainly due to robust sales in Defense applications and the advantage of raw material deflation. Despite a slight 1.5% dip in organic sales and challenges in Europe, Avient's leadership remains optimistic about demand improvements across all regions.
In addition to its earnings report, Avient announced a quarterly cash dividend of $0.2575 per share, underscoring its ongoing commitment to shareholder value. The dividend is scheduled to be paid to shareholders who are on record as of June 21, 2024.
InvestingPro Insights
In light of the executive transition at Avient Corporation, investors may find additional context in the company's financial metrics and market performance valuable. Avient boasts a solid track record of raising dividends, having done so for 13 consecutive years, which aligns with its reputation for maintaining dividend payments over 14 years. This consistency is a testament to the company's financial stability and commitment to shareholder returns, even as it undergoes strategic management changes.
InvestingPro data reveals that Avient has a market capitalization of $4.07 billion and is currently trading at a P/E ratio of 23.1, reflecting investor confidence in its earnings potential. Additionally, the company's stock is trading near its 52-week high, which could indicate market optimism about its growth prospects. With a dividend yield of 2.31%, Avient offers an attractive return for income-focused investors. It's also noteworthy that analysts expect net income growth this year, which may be an encouraging signal for potential investors considering the company's future performance post-executive transition.
For those seeking deeper insights, InvestingPro provides further tips on Avient, including an analysis of its earnings multiple and stock volatility. To explore these additional InvestingPro Tips and make informed investment decisions, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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