NN, Inc. (NASDAQ: NNBR), a global diversified industrial company
that manufactures high-precision components and assemblies, today
announced the appointment of Harold Bevis as President and Chief
Executive Officer effective May 22, 2023. Mr. Bevis will succeed
Warren Veltman, who will retire just prior to the new CEO start
date, in alignment with the planned executive transition announced
November 1, 2022.
Jeri Harman, Chairman of the Board of NN, commented, “The Board
of NN is pleased to welcome Harold Bevis as the Company’s new
President and Chief Executive Officer. Harold brings an impressive
track record of operational excellence and driving growth in core,
new and adjacent markets. Throughout his career, he has developed a
deep knowledge and extensive industry experience in electric
vehicles, communication technologies, and electrical components and
assemblies which can be directly applied to NN’s largest targeted
end markets. We believe Harold has the right skills in business
transformation and optimization, empowering teams, and value
creation, which will allow NN to drive sustainable growth and
increase shareholder value.”
Ms. Harman added, “On behalf of our Board of Directors and the
entire Company, I want to thank Warren for his leadership and
dedication to NN over his many years of service. We greatly
appreciate the significant contributions he has made to NN.”
Harold Bevis, President and Chief Executive Officer of NN,
commented, “I am honored to join NN as its next President and Chief
Executive Officer, and I am eager to continue the work of
transforming the business to reach the financial and operational
potential inherent in the business. Our Company stands at the
center of converging trends in both electric vehicles and the
improvements in the power grid required to satisfy the significant
increase in worldwide electrical power demand. I am looking forward
to leveraging my skills and experience to drive NN’s future success
providing our global customers with precision components and
assemblies.”
Mr. Bevis has more than 25 years of business leadership
experience, including more than 20 years’ experience in the CEO
role at a number of companies. He was previously President and CEO
of Commercial Vehicle Group, Inc. (NASDAQ: CVGI), a publicly traded
manufacturer of electrical, mechanical and seating systems for
electric and internal combustion engine commercial vehicles, as
well as industrial automation and robotic systems to retailers and
ecommerce shippers. At CVGI, Mr. Bevis demonstrated a track record
of driving new business wins in the electric vehicle industry and
he repositioned CVGI towards electrification, automation and
connectivity. Prior to his experience at CVGI, Mr. Bevis was
Chairman and CEO of Boxlight, a startup company focused on
education technology solutions. Previously, Mr. Bevis led a number
of companies in the packaging industry, including as President and
CEO of Xerium Technologies, Inc., Chairman and CEO of Prolamina,
and President and CEO of Pliant Corporation. Mr. Bevis has a
bachelor’s degree in industrial engineering from Iowa State
University, and an MBA in marketing from Columbia Business
School.
As a material inducement to Mr. Bevis to enter into employment
with the Company, the Board of Directors approved the grant of the
following inducement equity awards (collectively, the Inducement
Awards), granted outside the Company’s stockholder-approved equity
incentive plan, with a grant date of May 22, 2023: (i) 1,500,000
time-vesting restricted stock units (RSUs), which will vest ratably
in one-fifth increments on each of the first five anniversaries of
the grant date; and (ii) 2,500,000 performance-vesting RSUs (PSUs),
250,000 of which will be earned upon the Company’s average stock
price meeting or exceeding a price of $2.00 per share over a period
of 20 consecutive days, with an additional 250,000 PSUs being
earned for each dollar increase to the average stock price
thereafter, with a cap of $11.00, subject further to a five-year
vesting period.
As a result of the Inducement Grants, the Company does not
anticipate granting any further equity, as part of his annual
compensation or otherwise, to Mr. Bevis before 2028, and as such,
the Inducement Awards, effectively serve as his 2023, 2024, 2025,
2026 and 2027 annual long-term incentive awards. The Company
designed the Inducement Awards, in part, to (i) replace, in the
case of the RSUs, the compensation forfeited by Mr. Bevis when he
joined NN, (ii) align, in case of the PSUs, the interests of Mr.
Bevis and the Company’s shareholders, as the equity is only earned
as shareholders experience value creation, and (iii) prioritize
retention of Mr. Bevis through the entire five-year performance and
vesting periods.
About NN, Inc.
NN, Inc., a global diversified industrial company, combines
advanced engineering and production capabilities with in-depth
materials science expertise to design and manufacture
high-precision components and assemblies for a variety of markets
on a global basis. Headquartered in Charlotte, North Carolina, NN
has 31 facilities in North America, Europe, South America, and
Asia.
Except for specific historical information, many of the matters
discussed in this press release may express or imply projections of
revenues or expenditures, statements of plans and objectives or
future operations or statements of future economic performance.
These statements may discuss goals, intentions and expectations as
to future trends, plans, events, results of operations or financial
condition, or state other information relating to NN, Inc. based on
current beliefs of management as well as assumptions made by, and
information currently available to, management. Forward-looking
statements generally will be accompanied by words such as
“anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,”
“guidance,” “intend,” “may,” “possible,” “potential,” “predict,”
“project” or other similar words, phrases or expressions.
Forward-looking statements involve a number of risks and
uncertainties that are outside of management’s control and that may
cause actual results to be materially different from such
forward-looking statements. Such factors include, among others,
general economic conditions and economic conditions in the
industrial sector; the impacts of pandemics, epidemics, disease
outbreaks and other public health crises, including the COVID-19
pandemic, on our financial condition, business operations and
liquidity; competitive influences; risks that current customers
will commence or increase captive production; risks of capacity
underutilization; quality issues; material changes in the costs and
availability of raw materials; economic, social, political and
geopolitical instability, currency fluctuation, and other risks of
doing business outside of the United States; inflationary pressures
and changes in the cost or availability of materials, supply chain
shortages and disruptions, and the availability of labor; our
dependence on certain major customers, some of whom are not parties
to long-term agreements (and/or are terminable on short notice);
the impact of acquisitions and divestitures; our ability to hire or
retain key personnel; the level of our indebtedness; the
restrictions contained in our debt agreements; our ability to
obtain financing at favorable rates, if at all, and to refinance
existing debt as it matures; unanticipated difficulties integrating
acquisitions; new laws and governmental regulations; the impact of
climate change on our operations; and cyber liability or potential
liability for breaches of our or our service providers’ information
technology systems or business operations disruptions. The
foregoing factors should not be construed as exhaustive and should
be read in conjunction with the sections entitled “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” included in the Company’s filings made
with the Securities and Exchange Commission. Any forward-looking
statement speaks only as of the date of this press release, and the
Company undertakes no obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as required by law. New
risks and uncertainties may emerge from time to time, and it is not
possible for the Company to predict their occurrence or how they
will affect the Company. The Company qualifies all forward-looking
statements by these cautionary statements.
FOR FURTHER INFORMATION:
Jeff Tryka, CFA Investor Relations
Contactjtryka@lambert.com(616) 258-5766
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