Business Context and Reporting Period
This is an Amendment No. 1 to a Current Report on Form 8-K filed by Energy Recovery, Inc. on May 4, 2018. The filing amends a previous report to disclose the specific compensatory arrangements for Mr. Chris M. Gannon, who was appointed President and Chief Executive Officer on May 3, 2018.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on executive compensation details.
Material Changes
The material change disclosed is the formalization of the compensation package for the newly appointed CEO, Mr. Chris M. Gannon, which was not determined at the time of the original 8-K filing.
Management Commentary and Compensation Details
Pursuant to the "Promotion Letter," Mr. Gannon's compensation package includes:
- Annual Salary: $425,000
- Annual Bonus: Eligible for up to 100% of his annual salary
- Equity: A one-time option to purchase $100,000 worth of the Company's common stock
- Benefits: Standard Company benefits
Investor Verification Checklist
- Verify the terms of the "Promotion Letter" attached as Exhibit 10.1 for complete legal details.
- Confirm the vesting schedule and exercise terms for the $100,000 stock option grant.
- Review the Company's historical performance to assess the impact of the new leadership on future operations.