NEWARK, CA – Concentrix Corporation (NASDAQ:CNXC), a global leader in customer engagement services and technologies, announced significant changes to its stock incentive plan following a Special Meeting of Stockholders held on Monday. The amendments to the Concentrix Corporation Amended and Restated 2020 Stock Incentive Plan, which were approved by shareholders, include an increase of 3,000,000 shares to the number of authorized shares under the plan and the removal of the evergreen provision that previously allowed for automatic annual increases in the number of shares available for issuance.
The changes to the plan were detailed in the Company's definitive proxy statement filed with the SEC on September 17, 2024, and are now ratified by the stockholders' vote. The approval of the amendments signifies a strategic move by Concentrix to further incentivize its employees through stock-based compensation. The plan's expansion is designed to align the interests of employees and shareholders by providing a mechanism for employee ownership in the company's growth and success.
Additionally, the stockholders voted to amend the company's Amended and Restated Certificate of Incorporation to eliminate the supermajority voting requirement. This change reduces the threshold needed to amend or repeal certain articles of the Charter, including Articles V, VII, VIII, or IX, from a 66-2/3% supermajority to a simple majority vote. This amendment is seen as a move towards more democratic corporate governance practices.
The voting results from the Special Meeting were as follows: The Charter Amendment received 56,024,770 votes in favor, 116,157 against, and 169,527 abstentions; The 2020 Plan Proposal received 41,051,074 votes in favor, 15,086,888 against, and 172,492 abstentions; The Adjournment Proposal, which would allow for the adjournment of the Special Meeting to solicit additional proxies if necessary, received 40,744,905 votes in favor, 15,392,761 against, and 172,788 abstentions.
Concentrix Corp (NASDAQ:CNXC), incorporated in Delaware with a fiscal year-end of November 30, operates in the business services sector, providing a range of services to enhance customer engagement and business performance. The company's headquarters are located at 39899 Balentine Drive, Newark, California.
This report is based on a press release statement and provides a factual summary of the key decisions made by Concentrix Corporation's stockholders at the Special Meeting. The full text of the amended 2020 Stock Incentive Plan is filed with the SEC and incorporated by reference into this article.
In other recent news, Concentrix Corporation reported a 2.6% revenue increase in its third-quarter fiscal year 2024 earnings, reaching $2.4 billion. This growth was primarily driven by sectors such as retail, travel, and e-commerce. However, the company's adjusted Operating Income and adjusted EPS fell short of expectations due to higher than anticipated Selling, General, and Administrative costs.
Concentrix also launched iX Hello, an AI productivity tool aimed at enhancing operational efficiency, and secured a significant five-year contract worth over $150 million with a financial organization. Baird initiated coverage on Concentrix shares with an Outperform rating, citing the company's attractive valuation and growth prospects. Scotiabank and Canaccord Genuity also maintained their positive ratings on the company's stock, despite the revised profit guidance for the fourth quarter and full-year 2024.
Looking ahead, Concentrix expects Q4 2023 revenue to be between $2.42 billion and $2.47 billion, and full-year 2024 revenue projection is between $9.591 billion and $9.641 billion, reflecting a 2.2% to 2.7% growth. Despite facing some challenges, Concentrix's management remains committed to a conservative capital allocation strategy, which includes repaying debt and returning capital to shareholders.
InvestingPro Insights
Recent InvestingPro data provides additional context to Concentrix Corporation's strategic decisions. The company's market capitalization stands at $2.87 billion, with a price-to-earnings ratio of 14.36, suggesting a potentially undervalued stock relative to earnings. This valuation perspective is further supported by the stock trading near its 52-week low, with a significant price decline of 33.97% over the last three months.
The expansion of the stock incentive plan aligns with InvestingPro Tips indicating that management has been aggressively buying back shares, potentially signaling confidence in the company's future prospects. Additionally, Concentrix has raised its dividend for 4 consecutive years, with a current dividend yield of 2.99%, which may attract income-focused investors.
Despite recent stock price challenges, Concentrix maintains a strong financial position. The company's revenue for the last twelve months reached $9.4 billion, with a robust revenue growth of 44.09%. This growth, coupled with the InvestingPro Tip that net income is expected to grow this year, suggests that the company's fundamentals remain solid despite market volatility.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Concentrix, providing a deeper understanding of the company's financial health and market position.
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