Business Context and Reporting Period
This Form 8-K filing by Energy Recovery, Inc. (ERI) reports significant executive leadership changes effective October 23, 2023. The report was filed on October 24, 2024, referencing the earliest event date of October 23, 2023.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity metrics. The document focuses exclusively on personnel changes and associated compensation arrangements.
Material Changes
- Departure of CEO: Robert Yu Lang Mao departed as President and Chief Executive Officer effective October 23, 2023. He will remain on the Board of Directors but will no longer serve as Chairman.
- Appointment of Interim CEO: David Moon, a current Board member, was appointed Interim President and Chief Executive Officer effective immediately. He will serve until a permanent successor is appointed.
- Committee Changes: Mr. Moon stepped down from the Audit Committee and the Nominating and Corporate Governance Committee upon his appointment as Interim CEO but remains on the Board.
Compensation and Management Commentary
In connection with his appointment, Mr. Moon will receive the following compensation, pro-rated for the duration of his service:
- Base salary of $550,000 per annum.
- One-time equity award valued at approximately $280,000.
- Standard employee benefits.
As an employee, Mr. Moon is no longer eligible for his annual Board fees, which consisted of a $50,000 cash retainer and a $100,000 equity retainer. The filing includes a press release issued on October 24, 2023, as an exhibit.
Investor Verification Checklist
- Verify the timeline for the search and appointment of a permanent CEO to replace the interim leadership.
- Review the impact of the leadership transition on the company's strategic direction and operational execution.
- Confirm the status of Robert Yu Lang Mao's role on the Board and any potential conflicts of interest.
- Check subsequent filings for the finalization of Mr. Moon's equity award and any changes to the Board committee structure.