Cirrus Logic, Inc. (NASDAQ:CRUS), a semiconductor company, announced changes to its executive compensation program following its Annual Meeting of Stockholders held on Thursday. The company, headquartered in Austin, Texas, received shareholder approval for the amendment and restatement of its 2018 Long Term Incentive Plan (LTIP).
The revised plan, effective from the same day, expands the number of shares available for issuance by an additional 2.67 million and extends the plan's expiration date to July 26, 2034.
The modifications to the LTIP also included alterations to the delegation language within the plan and clarified the total number of shares that may be issued upon the exercise of incentive stock options, aligning with the total authorized under the LTIP. These changes were detailed in the company's definitive proxy statement filed on June 3, 2024.
At the Annual Meeting, shareholders also voted on several other key proposals. The election of directors resulted in all seven nominees being elected with a significant majority of votes in favor. The appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending March 29, 2025, was ratified with overwhelming support.
Moreover, an advisory vote to approve named executive officer compensation passed, as did the approval of an amendment and restatement of the company's Certificate of Incorporation to permit officer exculpation. The latter two proposals encountered some opposition but ultimately received a sufficient number of votes to pass.
The full text of the Amended LTIP, as well as detailed voting results for each proposal, are included in the exhibits of the Current Report on Form 8-K, which the company filed with the Securities and Exchange Commission on Monday. This report is based on a press release statement from Cirrus Logic, Inc.
In other recent news, Cirrus Logic has been the focus of several significant developments. KeyBanc has raised its price target for Cirrus Logic shares, maintaining an Overweight rating, based on anticipated improvements in the upcoming iPhone 16, which is expected to incorporate a haptics driver from Cirrus Logic.
Furthermore, the company has launched a new series of digital-to-analog converters and an audio CODEC, aimed at the professional audio market, continuing its dedication to superior analog functionality and digital integration.
Cirrus Logic's board and financial leadership have also seen changes. William D. Mosley has been nominated for election to the board of directors while board member Tim Dehne is set to retire. CFO Venk Nathamuni is departing, with Ulf Habermann appointed as interim CFO.
In terms of analyst notes, Stifel has maintained its Buy rating on Cirrus Logic shares, expressing confidence in the financial strategy under the new CFO. However, Benchmark has downgraded Cirrus Logic's stock from Buy to Hold, citing the current stock price as fair value. These are recent developments in the company's journey.
InvestingPro Insights
In the context of Cirrus Logic, Inc.'s (NASDAQ:CRUS) recent changes to its executive compensation program, it is noteworthy that the semiconductor company is currently trading at a low P/E ratio relative to near-term earnings growth, as per InvestingPro data. Specifically, the P/E ratio stands at 26.05, with an adjusted P/E ratio for the last twelve months as of Q4 2024 at 25.53.
This metric suggests the company's earnings are growing faster than its stock price, potentially indicating an undervalued stock. Moreover, Cirrus Logic's cash flows have been robust enough to cover interest payments comfortably, which is a positive sign for investors concerned about the company's financial health.
The company has demonstrated strong returns, with a 43.12% price total return over the last three months and a 60.79% return over the last six months as of 2024. This performance aligns with InvestingPro Tips highlighting the company's high return over the last year and strong return over the last three months. Investors may find these returns particularly relevant given the recent shareholder decisions and the company's strategic plans for long-term incentives.
For those interested in deeper analysis and additional insights, there are 12 more InvestingPro Tips available for Cirrus Logic, Inc. These tips can be accessed through the service's platform, offering a comprehensive overview of the company's financials and market performance. To benefit from the full range of insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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