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GHM Graham

Filed: 2 Jun 21, 4:15pm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 26, 2021

 

 

Graham Corporation

(Exact name of Registrant as specified in its charter)

 

 

 

Delaware 1-08462 16-1194720

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

20 Florence Avenue, Batavia, New York 14020
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (585) 343-2216

N/A

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, par value $0.10 per share GHM NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 


Item 5.02

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Fiscal 2022 Annual Stock-Based Long-Term Incentive Award Plan for Senior Executives. On May 26, 2021, the Compensation Committee of the Board of Directors (the “Compensation Committee”) of Graham Corporation (the “Company”) renewed and amended its Annual Stock-Based Long-Term Incentive Award Plan for Senior Executives (the “Restricted Stock Bonus Program”) for the fiscal year ending March 31, 2022 (“Fiscal 2022”) and approved grants of time-vested restricted stock and performance-vested restricted stock thereunder in the amounts set forth below to the Company’s named executive officers. All grants were made under the 2020 Graham Corporation Equity Incentive Plan (the “Plan”) as of June 1, 2021.

Time-vested restricted stock awards are designed to encourage the Company’s named executive officers to remain employed by the Company. The time-vested restricted stock granted to the Company’s named executive officers vests 331/3% per year over three years and the time-vested restricted stock granted to the Company’s Directors, as described below, vests on the first anniversary of the date of grant.

Performance-vested restricted stock awards are designed to incent the Company’s named executive officers to focus on Company growth, align their compensation with the Company’s business strategy and to create stockholder value. Awards of performance-vested restricted stock vest based upon the Company’s achievement over a three-year period of Total Shareholder Return compared to the Russell 2000 Capital Goods and Energy Composite Ranking (using a 20-day price average at the start and end of the three-year period commencing April 1, 2021 and ending March 31, 2024) (“Relative TSR”). The threshold, target and maximum payout matrixes for the performance-vested restricted stock are set forth below:

Relative TSR

 

Threshold  25th percentile  50% payout
Target (1)  50th percentile  100% payout
Maximum  75th percentile  200% payout

 

(1) 

If the Company’s Relative TSR is negative, maximum payout is Target.

The number of shares of time-vested restricted stock and performance-vested restricted stock awarded to the Company’s named executive officers under the Restricted Stock Bonus Program were determined using a Long-Term Incentive Percentage (the “L-T Percentage”) for each such officer. The Compensation Committee set the L-T Percentage for each of the Company’s named executive officers as follows: James R. Lines – 80%; Daniel Thoren – 50%; Matthew Malone – 50%; Jeffrey F. Glajch – 50%; Alan E. Smith – 50%; and Jennifer R. Condame – 35%. The number of shares of time-vested restricted stock awarded were determined by multiplying 50% of each named executive officer’s base salary in effect on the date of grant by such officer’s L-T Percentage, and then dividing the product by the closing price of the Company’s Common Stock on the NYSE on the date of grant. The number of shares of performance-vested restricted stock was determined by multiplying 50% of each named executive officer’s base salary in effect on the date of grant by such officer’s L-T Percentage, and then dividing the product by the closing price


of the Company’s Common Stock on the NYSE on the date of grant. The number of shares of restricted stock awarded to each of the Company’s Directors was determined by dividing $50,000 by the closing price of the Company’s Common Stock on the NYSE on the date of grant. The closing price of the Company’s Common Stock on the NYSE on June 1, 2021 was $15.31.

 

Named Executive Officer

  Number of Shares of
Time-Vested Restricted
Stock Granted (1)
  Number of Shares of
Performance-Vested Restricted
Stock Granted (2)(3)

James R. Lines

Chief Executive Officer

    13,063    26,126

Daniel Thoren

President and Chief Operating Officer

    5,960    11,920

Matthew Malone

Vice President and General Manager of Barber-Nichols

    4,082    8,164

Jeffrey Glajch

Vice President of Finance and Administration and Chief Financial Officer

    5,466    10,932

Alan E. Smith

Vice President of Operations

    4,332    8,664

Jennifer R. Condame

Controller and Chief Accounting Officer

    2,124    4,248

 

(1) 

In the event a named executive officer’s employment terminates prior to the conclusion of a vesting for reasons other than death or disability, such officer’s right to receive any unvested time-vested restricted stock is forfeited.

(2) 

The number of shares that will vest following the conclusion of the fiscal year ending March 31, 2024 (“Fiscal 2024”) is based upon the Company’s achievement of performance criteria. The number of shares set forth above assumes the maximum achievement of such performance criteria. If maximum achievement is not realized, any unearned shares will be forfeited back to the Company. Once the achievement of the performance measures are determined for Fiscal 2024, the actual number of shares to which each named executive officer is entitled will be adjusted accordingly.

(3) 

In the event a named executive officer’s employment terminates prior to the conclusion of Fiscal 2024 for reasons other than death or disability, such officer’s right to receive the performance-vested restricted stock shall be forfeited.

The foregoing description of the Restricted Stock Bonus Program in effect for Fiscal 2022 does not purport to be complete and is qualified in its entirety by the Restricted Stock Bonus Program, a copy of which is attached to this Current Report on Form 8–K as Exhibit 99.1 and is incorporated herein by reference.


Annual Stock-Based Grant to Non-Employee Directors. The Compensation Committee also approved the June 1, 2021 grant of time-vested restricted stock under the Plan in the amounts set forth below to the Company’s non-employee Directors.

 

Director

  Number of Shares of Time-Vested
Restricted Stock Awarded

James Barber

  3,265

Alan Fortier

  3,265

James Malvaso

  3,265

Gerard Mazurkiewicz

  3,265

Jonathan Painter

  3,265

Lisa Schnorr

  3,265

Fiscal 2021 Named Executive Officer Bonuses. On May 26, 2021, the Compensation Committee approved the payment of cash bonuses to certain of the Company’s named executive officers, as set forth below. Such bonuses were approved in accordance with the Company’s Annual Executive Cash Bonus Program in effect for the fiscal year ending March 31, 2021 (“Fiscal 2021”) and were based on the Company’s achievement during Fiscal 2021 of personal objectives by each named executive officer listed below during such year.

 

Named Executive Officer

  Total Fiscal 2021 Bonus 

James R. Lines

  $652,800 

Jeffrey F. Glajch

  $265,200 

Alan E. Smith

  $196,518 

Jennifer R. Condame

  $103,051 

Item 9.01. Financial Statements and Exhibits.

 

 (d)

Exhibits.

 

Exhibit No.  

Description

99.1  Graham Corporation Annual Stock-Based Long-Term Incentive Award Plan for Senior Executives in effect for the fiscal year ending March 31, 2022.
104  Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

   Graham Corporation
Date: June 2, 2021  By: 

/s/ Jeffrey Glajch

   Jeffrey Glajch
   Vice President – Finance & Administration and
   Chief Financial Officer