Everus Construction Implements New Executive Severance Plan
cipated to open doors for inorganic growth within Everus. However, DA Davidson advised caution in assigning top-tier industry multiples to Everus shares at this juncture, indicating a cautious approach to the stock’s future market performance.
Everus Construction Group’s recent implementation of a Change in Control Severance Plan reflects the company’s proactive approach to executive compensation in the event of organizational changes. This move, disclosed in an SEC filing, outlines the compensatory arrangements for executive officers, including President and CEO Jeffrey S. Thiede, in the event of a company takeover.
Under the CIC Plan, if an executive’s employment is terminated without cause or for good reason within two years following a change in control, they will receive a lump sum payment. This includes a prorated annual incentive, a cash amount based on salary and target incentive, healthcare benefits for 12 months, and up to $10,500 for outplacement services.
To be eligible for these benefits, participants must agree to certain conditions, such as signing a release of claims against Everus Construction, adhering to a non-competition agreement, and committing to not solicit employees or customers. The plan also includes provisions to prevent excise tax liabilities under the Internal Revenue Code Section 4999.
In addition to the CIC Plan, Everus, known for its industry presence in data centers, semiconductor fabs, and electrical transmission and distribution, received a Neutral rating from DA Davidson. The analyst firm set a price target of $55.00 for Everus, based on projected EBITDA for 2025 and 2026.
While DA Davidson sees potential for platform expansion and inorganic growth opportunities for Everus post its spin-off from MDU Resources Group Inc, they advise caution in assigning high industry multiples to Everus shares at this point. These developments shed light on Everus’s strategic moves and financial outlook.
