Quaker Chemical Corporation (NYSE:KWR), a global provider of process fluids, chemical specialties, and technical expertise with a market capitalization of $2.7 billion, has finalized a separation agreement with its former CEO and President, Andrew E. Tometich, as per the latest 8-K filing with the U.S. Securities and Exchange Commission.
According to InvestingPro analysis, the company is currently trading near its 52-week low, with strong fundamentals including a "GOOD" overall financial health score. Tometich's departure, effective November 18, 2024, was not due to any disagreement with the company.
The separation agreement, dated December 5, 2024, outlines the terms of Tometich's involuntary termination, including severance payments and benefits previously disclosed in Quaker Chemical's Form 8-K filed on November 20, 2024, and detailed in the proxy statement filed on March 28, 2024, with certain modifications. For investors interested in deeper analysis of executive compensation and corporate governance, InvestingPro offers comprehensive research reports covering 1,400+ US stocks, including detailed management effectiveness metrics.
Under the terms of the agreement, Tometich will receive accelerated, prorated vesting of outstanding stock options, restricted stock units (RSUs), performance stock units (PSUs), and restricted stock as defined in the Quaker Chemical Corporation 2016 Long-Term Incentive Plan (2016 Plan). The performance-based awards will be measured at the end of their respective performance periods, and payouts will be issued if targets are met, adhering to the original payment schedule.
This development follows Tometich's announcement of his departure from the company, which was reported without any indication of internal conflict. The details of the separation agreement are available in the full text of the document, which is attached as an exhibit to the 8-K filing.
Quaker Chemical's corporate headquarters is located in Conshohocken, Pennsylvania, and the company operates under the 'KWR' ticker on the New York Stock Exchange. The company has maintained dividend payments for 52 consecutive years and boasts a current ratio of 2.54, indicating strong liquidity.
In other recent news, Quaker Chemical Corporation, also known as Quaker Houghton, announced the departure of Melissa Leneis, Senior Vice President and Chief Human Resources Officer. In the same vein, the company welcomed Joseph Berquist as its new Chief Executive Officer and President. Berquist's tenure includes the successful integration of the 2019 Quaker Houghton merger, which significantly expanded the company's size and produced over $80 million in synergies.
Despite a 6% decrease in net sales year-over-year, totaling $462 million, Quaker Houghton reported an adjusted EBITDA of $79 million. The company also achieved over $20 million in annual cost savings from its Cost and Optimization Program, maintaining a strong cash position with over $200 million in cash.
Piper Sandler, an analyst firm, adjusted its price target for Quaker Houghton, raising it to $200 from the previous $190, while keeping an Overweight rating on the stock. This adjustment was attributed to expected seasonal trends and a more gradual economic recovery in Asia and the European Union.
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