Enerpac Tool Group Corp. has amended its employment agreement with President and CEO, Paul Sternlieb, to provide a retention incentive and establish a framework for his future retirement. The amendment is designed to retain Mr. Sternlieb as CEO until at least July 31, 2030, and facilitate an orderly leadership transition. The changes primarily address the treatment of equity and cash incentives upon a qualifying retirement and do not increase his base salary or annual award targets.
Key Details
- Retention & Retirement: The agreement incentivizes CEO Paul Sternlieb to remain with the company until at least July 31, 2030. It establishes specific retirement 'window periods,' starting in February 2030, during which he can provide a 180-day retirement notice.
- Incentive Treatment upon Retirement: Upon a qualifying retirement, unvested time-based restricted stock units (RSUs) will fully vest, and performance-based restricted stock units (PSUs) will continue to vest based on actual company performance without proration. He will also receive his full annual bonus for the fiscal year of his retirement.
- Enhanced Severance Terms: The amendment increases potential severance benefits under the Senior Officer Severance Plan, raising the multiplier for base salary and annual incentive payments from 1.5x to 2.0x and extending welfare benefit continuation from 18 to 24 months.