WESTPORT, CT – Compass Diversified Holdings (NYSE: NYSE:CODI), a company with holdings in both the household furniture and apparel sectors, announced the departure of Ryan J. Faulkingham as Chief Financial Officer (CFO) and regular trustee, effective August 30, 2024. The separation is characterized as a termination without cause under an Employment Agreement dated November 30, 2013.
Following his departure, Faulkingham and Compass Group (LON:CPG) Management, LLC entered into a Separation Agreement on September 12, 2024. Under the terms of this agreement, Faulkingham will receive accrued salary, vacation pay, unreimbursed business expenses, a twelve-month salary equivalent to $500,000, and a discretionary bonus identical to the one received for 2023, totaling $575,000.
Moreover, from November 1, 2024, until he secures new employment offering health benefits, Faulkingham will be reimbursed for health coverage premiums for himself and his dependents.
The agreement also includes provisions for Faulkingham to provide transition services over a 60-day period, for which he will be compensated $300,000. As part of the agreement, he has agreed to waive certain claims against Compass Group Management, the Company, and the Trust related to his employment.
This executive change comes as the company continues to navigate the manufacturing sectors for household furniture and apparel. The full details of the Separation Agreement can be found in Exhibit 10.1 of the SEC filing, which is incorporated by reference into this report. The information provided is based on a press release statement.
In financial developments, the company reported an 11% rise in Q2 2024 revenue, driven by its branded consumer vertical, despite a net loss of $13.7 million. However, adjusted EBITDA increased by 27%, indicating a positive financial outlook. Compass Diversified also amended its sales agreements for preferred and common shares, enhancing the availability of shares for potential sale.
On the merger front, its subsidiary, Altor Solutions, acquired Lifoam Industries in a cash transaction valued at $137 million, expected to diversify Altor Solutions' revenue streams and increase Compass Diversified's exposure to the healthcare industry.
B.Riley analysts maintained their Buy rating for Compass Diversified, noting an increase in full-year subsidiary adjusted EBITDA projections, now expected to be between $480 million and $520 million. These are recent developments shaping the financial landscape of Compass Diversified.
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