OneSpan Inc. (NASDAQ:OSPN), a company specializing in integrated systems design, announced the appointment of Victor Limongelli as President and Chief Executive Officer effective immediately. The decision was made by the Board of Directors on July 31, 2024, as disclosed in a recent SEC filing.
Limongelli, 57, has been serving as the interim CEO since January 4, 2024, and brings a wealth of experience from previous leadership roles in various software companies. Notably, he was at the helm of BQE Software, MobileCause, Inc., and AccessData Group, and spent over nine years as President and CEO of Guidance Software, Inc.
The new executive agreement between Limongelli and OneSpan includes an initial annual base salary of $600,000. Starting from the latter half of 2024, he will be eligible for an annual cash incentive bonus plan, with a target bonus of $500,000 for 2024 and a full base salary equivalent thereafter.
Additionally, Limongelli is set to receive a performance-based annual long-term incentive award starting in 2025, with a target value of at least $1,800,000. This award is part of the company's 2019 Omnibus Incentive Plan and is subject to the achievement of performance metrics and vesting over three years.
On July 31, 2024, Limongelli was granted 100,000 restricted stock units (RSUs) vesting over three years, and a performance-based RSU grant with a target of 300,000 units, contingent upon the company's stock reaching certain price goals over a four-year period.
The employment agreement, which automatically renews annually, also includes severance benefits in case of termination without cause, non-renewal, or resignation for good reason. These benefits consist of 12 months of base salary, a payment equal to the target bonus amount, and company-paid COBRA premiums for up to 12 months, contingent upon signing a separation agreement and release.
In other recent news, OneSpan Inc. has reported a 13% year-over-year increase in its first-quarter 2024 revenue, which amounted to $65 million. The company's adjusted EBITDA stood at a robust $20 million, representing 31% of the revenue, while the annual recurring revenue (ARR) saw a 9% growth year-over-year, hitting $155 million. The significant growth in Security Solutions and Digital Agreements business units, along with expansion contracts from existing customers and a rising demand for anti-fraud solutions, have been credited for this strong performance.
OneSpan is also making strides in achieving its cost savings goal, with $64.5 million already realized and an expectation to reach approximately $75 million by year-end. As a result, the company has revised its adjusted EBITDA guidance upward while maintaining its full-year revenue and ARR forecasts.
InvestingPro Insights
As OneSpan Inc. (NASDAQ:OSPN) welcomes Victor Limongelli as its new President and CEO, the company's financial metrics and market performance offer additional context to this leadership transition. According to real-time data from InvestingPro, OneSpan boasts a market capitalization of approximately $548.76 million. The company has demonstrated solid revenue growth over the last twelve months as of Q1 2024, with an increase of 8.11%, and an even more impressive quarterly revenue growth of 12.56%. These figures underscore the financial health and growth trajectory of the company as Limongelli takes the helm.
InvestingPro Tips highlight that OneSpan holds more cash than debt on its balance sheet, suggesting a strong financial position. Moreover, the company has been aggressively buying back shares, which could be a sign of management's confidence in the company's future. These factors, combined with an expected net income growth this year, provide a positive outlook for OneSpan under its new leadership.
For readers interested in deeper analysis, there are additional InvestingPro Tips available, including insights into the stock's valuation multiples and projected profitability. OneSpan's current financial and market performance can be further explored through the lens of these expert tips, available at https://www.investing.com/pro/OSPN.
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