NI Holdings, Inc. (NASDAQ:NODK), a North Dakota-based insurer with a market capitalization of $333 million and significant revenue growth of 23% over the last twelve months, has concluded a severance agreement with Patrick W. Duncan, its former Senior Vice President of Operations. According to InvestingPro analysis, the company's financial health score is rated as "Fair." The agreement, finalized on November 27, 2024, outlines the compensation following Duncan's termination without cause on November 20, 2024.
According to the terms of the Separation Agreement, Duncan will receive a severance payment totaling $859,706.39. This sum represents two years of his annual base salary and the average of his annual bonuses over the past three years. The severance package comes at a time when the company faces profitability challenges, with InvestingPro data showing a negative earnings per share of -$0.43 over the last twelve months.
In addition to the severance payment, NI Holdings has agreed to cover the premiums for Duncan's participation in the company's group medical plans for 18 months post-termination. An additional amount of $35,641.71 will be paid to Duncan to offset the after-tax cost of health coverage for six more months.
In other recent news, NI Holdings, Inc. has finalized the terms of separation with former President and CEO, Michael J. Alexander. The agreement, which follows Alexander's (NYSE:ALX) termination without cause, includes a severance payment of $3,826,583.01, equivalent to three years of his annual base salary and the average of his annual bonuses over the past three years.
In addition to this, NI Holdings will continue to cover the premiums for Alexander's group medical plans for 18 months post-termination and provide $65,493.07 to offset the after-tax cost of his health coverage for an additional 18 months.
These financial arrangements are contingent upon Alexander's agreement to a comprehensive release of claims against NI Holdings and its affiliates. However, it's important to note that Alexander retains the right to revoke the Separation Agreement within seven days following its execution.
In other developments, NI Holdings has seen a significant leadership change, with Cindy L. Launer stepping in as Interim CEO following Alexander's departure. Launer, a board member since November 2019, brings 18 years of insurance industry experience to her new role. The company's board is currently in the process of searching for a permanent CEO."
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