Clearwater Paper extends CEO’s contract

Clearwater Paper Corp., based in Spokane, has recently renewed CEO Arsen Kitch’s employment agreement for one year, as per a filing with the Securities and Exchange Commission. The agreement, effective from April 1st, supersedes the prior 2020 agreement, ensuring Kitch remains the President and CEO of the company. Under this renewed agreement, Kitch will receive an annual salary of $1 million, the same as his previous salary. Additionally, he will be eligible for annual bonuses and long-term incentive awards.

This agreement also includes automatic extensions for one-year terms unless either Clearwater Paper or Kitch decides against extending it. Kitch will maintain his position on Clearwater Paper’s board of directors and be re-nominated during the agreement’s term. Kitch assumed the roles of President and CEO in 2020, succeeding Linda Massman, who retired that year. Clearwater Paper, primarily a paperboard manufacturer, operates from the Bank of America Financial Center in downtown Spokane at 601 W. Riverside.

In light of focusing on its paperboard segment, Clearwater Paper divested its tissue production business to Sofidel America Corp., a subsidiary of Italian company Sofidel S.p.A., for $1.06 billion last year. The company’s stock (NYSE: CLW) closed at $25.05 per share on April 9, rising from its 52-week low of $22.58 but falling short of its 52-week high of $57.13.

The renewal of Kitch’s employment agreement underscores the company’s confidence in his leadership abilities and strategic direction. This move comes amidst Clearwater Paper’s endeavor to streamline its operations, improve efficiency, and enhance shareholder value. Kitch’s continued presence as CEO provides a sense of stability and consistent leadership, crucial elements for sustaining the company’s growth trajectory and navigating any future challenges effectively.

The re-election of Kitch as a member of the board demonstrates the board’s trust in his vision for Clearwater Paper’s future. By extending his employment agreement, the company ensures that Kitch’s expertise and strategic acumen will continue to drive Clearwater Paper’s success in the dynamic paper and packaging industry. Clearwater Paper’s decision to retain Kitch as its CEO reflects a commitment to continuity and stability, essential factors for sustained growth and organizational resilience amid changing market conditions and industry dynamics.