SUNNYVALE, CA – GSI Technology Inc. (NASDAQ:GSIT), a company specializing in semiconductors and related devices, has announced an amendment to its executive compensation plan, according to a recent 8-K filing with the Securities and Exchange Commission. The changes to the plan, approved by the Compensation Committee of the Board of Directors on Thursday, reflect a modification in the calculation of severance pay periods for executives.
The Amended and Restated Executive Retention and Severance Plan, which supersedes the original plan from September 30, 2014, maintains largely the same terms but introduces a new provision. Service to the company after September 30, 2024, will no longer contribute to the calculation of a Participant’s Base Salary Severance Period. Instead, the period will be fixed at the greater of eighteen months for a Chief Executive Officer or twelve months for an Executive Officer, or the period calculated based on employment completed by September 30, 2024.
Additionally, in the event of an acceleration of equity awards upon termination, time-based vesting Restricted Stock Units will be settled in full. Performance-based awards will be settled at the higher of the target level or the performance level achieved up to the termination date. The revised plan will expire on September 30, 2027.
In other business, the company's annual meeting of stockholders was held on Thursday, where six directors were elected to the Board. The stockholders also ratified the appointment of BDO USA, P.C. as the independent registered public accounting firm for the fiscal year ending March 31, 2025. Furthermore, an advisory resolution concerning the fiscal 2024 compensation of the company's named executive officers was approved.
The filing provides a detailed account of the votes cast for each director nominee, the ratification of the accounting firm, and the advisory resolution on executive compensation. The information in this article is based on the statements from the press release.
In other recent news, GSI Technology has reported its Q1 fiscal 2025 earnings, revealing a net revenue of $4.7 million. This figure aligns with their predicted range, though it does represent a decrease from the $5.6 million reported in the same quarter of the previous year. The company also reported an operating loss of $4.7 million, which was offset by a one-time gain of $5.7 million from a sale and leaseback transaction.
GSI Technology is actively seeking a strategic partner for its Gemini-II software and has enlisted the help of Needham & Company to explore potential strategic opportunities. The company is also preparing for the launch of the GXL platform and is expanding the SBIR proposal pipeline.
These are the latest developments in GSI Technology's strategic shift, as the company seeks to navigate through a transition period. The company is focusing on the development of new revenue streams from their Gemini-I APU and securing additional government funding for Gemini-II development. Despite a decline in Q1 revenue from the previous year, the company's proactive measures indicate a forward-looking approach to addressing the challenges posed by the decline in their legacy SRAM business.
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