Business Context and Reporting Period
This Form 8-K Current Report was filed by Energy Recovery, Inc. on May 15, 2015, regarding an event that occurred on May 13, 2015. The filing discloses the appointment of a new Chief Financial Officer.
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 and appointment details.
Material Changes
The primary material change is the appointment of Mr. Chris M. Gannon as Chief Financial Officer, effective June 8, 2015. Mr. Gannon previously served as Managing Director at Conway MacKenzie Inc. and held roles at Talon Group and Caledonia Group.
Compensation and Management Commentary
Mr. Gannon's compensation package includes the following terms:
- Base Salary: $320,000 annually.
- Equity: Options to purchase 200,000 shares immediately, with an additional 100,000 share options after six months of service.
- Bonus: Eligible for an annual bonus up to 60% of base salary; a guaranteed bonus of $192,000 for 2015.
- Relocation: A lump sum allowance of $100,000, subject to pro-rata repayment if he resigns within twelve months.
- Benefits: Standard company benefits, participation in the Change of Control Plan, and eligibility for severance if terminated without cause.
The filing states there are no reportable related party transactions or family relationships between Mr. Gannon and other officers or directors.
Investor Verification Checklist
- Verify the effective start date of June 8, 2015, for the new CFO.
- Confirm the vesting schedule and terms for the 300,000 total stock options granted.
- Review the specific performance goals tied to the variable portion of the annual bonus.
- Check the repayment terms for the $100,000 relocation allowance in the event of early resignation.