WASHINGTON, D.C. - FTI Consulting, Inc. (NYSE:FCN) announced an extension of President and CEO Steven H. Gunby's employment agreement, now set to run through June 2, 2027. The amendment, approved by the company's Compensation Committee on September 25, 2024, was disclosed in a Form 8-K filing with the U.S. Securities and Exchange Commission.
The updated agreement includes provisions for automatic one-year extensions unless either party opts out with sufficient notice. Specifically, Gunby must provide 120 days' notice, while FTI Consulting must give 90 days' notice if they intend not to renew the agreement for these additional one-year periods.
This extension reflects the ongoing relationship between Gunby and FTI Consulting since he first took on the CEO role in December 2013. The terms of the agreement will continue beyond the original end date of April 1, 2025, marking a new phase in Gunby's tenure with the management consulting firm.
The announcement comes as FTI Consulting, a Maryland-incorporated firm, continues to position itself within the competitive management consulting industry, classified under the Standard Industrial Classification code 8742 for Services-Management Consulting Services.
FTI Consulting, headquartered at 555 12th Street NW in Washington, D.C., has not disclosed the specific reasons for the extension or any additional terms that may accompany this decision. The company's business address and contact information remain unchanged.
The filing also included a reference to an exhibit outlining the details of the amendment to Gunby's employment agreement. However, as is standard practice, FTI Consulting did not elaborate on the strategic implications of this leadership decision in its SEC filing.
Investors and stakeholders can access the full details of the amendment and other related documents filed with the SEC for a comprehensive understanding of the terms of Gunby's extended employment agreement with FTI Consulting. This news article is based on the press release statement and information contained in the recent SEC filing by FTI Consulting, Inc.
In other recent news, FTI Consulting has made several noteworthy strides. The company has revised its Code of Ethics and Business Conduct, reflecting changes in labor and human rights laws and clarifying the company’s gifts and entertainment policy. Furthermore, FTI Consulting has reported a 12% increase in revenue and a 27% growth in adjusted EBITDA for Q2 2024, with earnings per share rising to $2.34.
On the personnel front, the company has made strategic hires, including Jeff Wray as the Senior Managing Director and Industry Growth and Strategy Leader, Juli Saitz as a Senior Managing Director in the Dispute Advisory Services practice, and Thomas Thompson and Stuart McIvor in the Construction, Projects & Assets practice. Truist Securities has also upgraded its price target for FTI Consulting to $275, maintaining a Buy rating due to the company's projected growth trajectory.
Despite an expected seasonal slowdown in the fourth quarter, FTI Consulting has raised its full-year revenue and EPS guidance, indicating a positive growth trajectory. These recent developments demonstrate FTI Consulting's commitment to enhancing its service offerings and strengthening its global presence.
InvestingPro Insights
FTI Consulting's decision to extend CEO Steven H. Gunby's contract until 2027 aligns with the company's strong financial performance. According to InvestingPro data, FTI Consulting boasts a market capitalization of $8.03 billion and has demonstrated impressive growth, with revenue increasing by 14.72% over the last twelve months to $3.70 billion.
The company's profitability is noteworthy, with a gross profit margin of 32.99% and an operating income margin of 11.62%. This financial health is reflected in the stock's performance, which has seen a 27.55% total return over the past year.
InvestingPro Tips highlight that FTI Consulting trades at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.61. This suggests that the stock may be undervalued considering its growth prospects. Moreover, the company operates with a moderate level of debt and has liquid assets exceeding short-term obligations, indicating financial stability.
These insights support the board's confidence in Gunby's leadership and the company's trajectory. Investors seeking more comprehensive analysis can find 11 additional tips on InvestingPro, offering a deeper understanding of FTI Consulting's financial position and market outlook.
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