Methode Electronics Inc . (NYSE:MEI), a manufacturer of electronic connectors, has announced the appointment of Laura Kowalchik as its new Chief Financial Officer, effective October 1, 2024. Kowalchik will be taking over from David Rawden, who has served as the interim CFO since July 12, 2024.
Kowalchik, 55, brings extensive experience to Methode, having previously served as CFO at Communications & Power Industries, Dayco Incorporated, and Kenwal Steel Corp. Her academic credentials include a Bachelor of Science in Business Administration from the University of Richmond and a Master of Business Administration from Indiana University.
The terms of Kowalchik’s employment, as stated in an Offer Letter dated August 27, 2024, include an annual base salary of $600,000, eligibility for an annual bonus with a target amount of 75% of her base salary, and an annual long-term incentive plan award valued at $1,000,000. Additionally, she will receive a sign-on bonus comprising restricted stock units valued at $600,000 and $390,000 in cash to compensate for forfeitures from her previous employer.
Kowalchik’s compensation package also includes relocation and personal travel expenses, along with standard company benefits. Moreover, she will enter into a change of control agreement and a severance agreement upon the commencement of her employment, providing her with certain protections and entitlements in the event of termination.
In other recent news, Methode Electronics has seen a series of key developments. The company reported a decrease in sales for the fourth quarter of fiscal 2024, with sales dropping to $227 million, a $24 million decline from the previous year. Despite this, Methode Electronics achieved its highest free cash flow quarter and remains focused on cost reduction and managing program launches.
Methode Electronics has appointed Laura Kowalchik as its new Chief Financial Officer and John T. Erwin as its new Chief Procurement Officer. Kowalchik brings over 25 years of experience in strategic and financial management, while Erwin will focus on streamlining processes and driving cost efficiencies in Methode's worldwide procurement operations.
In a significant update, Methode Electronics' Compensation Committee has provided the option for certain officers to receive their annual performance-based bonuses in the form of restricted stock units instead of cash. Named executive officers, Kevin M. Martin and Andrea J. Barry, elected to receive their bonuses in equity, aligning their interests with those of the shareholders.
Looking ahead, Methode Electronics expects fiscal 2025 to mirror 2024 in terms of net sales, with a return to positive cash flow anticipated in the latter half of the year. The company is preparing for a return to growth and profitability in 2026, with a focus on the electric vehicle sector and new program launches. These are some of the recent developments at Methode Electronics.
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