CNH Industrial (NYSE:CNH) N.V. (NYSE:CNHI), a $14.56 billion leader in the construction machinery and equipment sector with annual revenues of $21.75 billion, announced significant changes to the compensation arrangements for one of its top executives.
According to InvestingPro analysis, the company currently trades at an attractive P/E ratio of 8.46, suggesting potential value for investors. On January 8, 2025, the company entered into a new employment agreement with Stefano Pampalone, the Agriculture Chief Commercial Officer.
The employment contract states that Pampalone will receive an annual base salary of 564,270 Swiss Francs, equivalent to approximately $619,000, and is eligible for a target bonus of 80% of his base salary. Furthermore, Pampalone will have the opportunity to earn annual long-term incentive awards amounting to no less than 200% of his base salary.
The agreement also outlines the conditions for termination, allowing either party to end the employment with a three-month written notice. With a "FAIR" Financial Health Score from InvestingPro, the company demonstrates stable operational performance, though detailed analysis reveals both strengths and areas for improvement in their executive retention strategy.
In the event of a "Qualifying Termination" not related to a change in control, Pampalone would be entitled to a severance payment equal to nine months of his base salary. If his termination occurs within 24 months following a change in control of the company, the severance would increase to 21 months of base salary, with equity and long-term incentive awards fully vesting at the target performance level.
Pampalone's severance and post-termination benefits are contingent upon his adherence to certain conditions, including the execution of a non-revocation of a release of claims and compliance with restrictive covenants such as non-solicitation and non-competition for a year post-employment.
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