Nordstrom announces executive retention bonuses amid merger

EditorLina Guerrero
Published 25/01/2025, 09:00 am
Nordstrom announces executive retention bonuses amid merger

This news article is based on a press release statement and aims to provide shareholders and the market with key information regarding Nordstrom's executive retention plan and its implications for the company's future operations and governance.

With six analysts recently revising their earnings estimates upward and the stock trading at a P/E ratio of 15.1, investors seeking deeper insights into Nordstrom's valuation and growth prospects can access comprehensive analysis through InvestingPro's detailed financial metrics and expert research. With six analysts recently revising their earnings estimates upward and the stock trading at a P/E ratio of 15.1, investors seeking deeper insights into Nordstrom's valuation and growth prospects can access comprehensive analysis through InvestingPro's detailed financial metrics and expert research.

The retention bonuses are structured to be paid out in three installments, with a portion being paid soon after the merger's completion, and the remaining amounts disbursed on the first and second anniversaries of the closing date. The company's Chief Customer Officer, Kenneth J. Worzel, is set to receive $1,790,000, Chief Financial Officer Catherine R. Smith will get $1,750,000, and Chief Technology and Information Officer Jason Morris is allocated $1,660,000.

This news article is based on a press release statement and aims to provide shareholders and the market with key information regarding Nordstrom's executive retention plan and its implications for the company's future operations and governance. With six analysts recently revising their earnings estimates upward and the stock trading at a P/E ratio of 15.1, investors seeking deeper insights into Nordstrom's valuation and growth prospects can access comprehensive analysis through InvestingPro's detailed financial metrics and expert research.

The merger, initially announced on December 22, 2024, involves Nordstrom merging with Norse Holdings, Inc.'s subsidiary, Navy Acquisition Co. Inc., with Nordstrom surviving as a wholly-owned subsidiary of the parent company. This move is part of a broader strategy to strengthen Nordstrom's market position and future prospects.

In other recent news, Nordstrom Inc . (NYSE:JWN) is reportedly nearing an acquisition agreement with the Nordstrom family and El Puerto de Liverpool. The potential deal, which involves a proposal for an acquisition price of $23.00 per share in cash, has sparked investor interest. The merger's financing structure includes a mix of rollover equity, cash commitments, and $250 million in new bank financing. Morgan Stanley (NYSE:MS) & Co. LLC and Centerview Partners LLC are serving as financial advisors during this evaluation process.

In other developments, Stacy Brown-Philpot has resigned from her position on Nordstrom's Board of Directors. Following her departure, the size of the Board has been reduced by one. Nordstrom Inc. recently reported strong Q3 earnings, with net sales of $3.35 billion surpassing expectations. However, the company has revised its full-year guidance to flat to 1% revenue growth due to potential challenges in the upcoming fourth quarter.

Analysts from Telsey Advisory Group, Guggenheim, Evercore ISI, and UBS have provided their insights on Nordstrom's performance. Telsey raised its stock price target for Nordstrom from $24.00 to $26.00, maintaining a Market Perform rating. Guggenheim maintained a Neutral rating, cautiously increasing its full-year EPS estimates for Nordstrom.

Evercore ISI maintained its "In Line" rating but adjusted its price target to $22.00. UBS, on the other hand, maintained a Sell rating, expressing concerns about Nordstrom's potential loss of market share to off-price retailers and direct-to-consumer channels.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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