Graham Corp Renews Executive & Director Incentive Plans, Grants $2.95M in Stock Awards
Summary
Graham Corp renewed its annual stock-based and cash bonus incentive plans for senior executives and non-employee directors for Fiscal Year 2027, granting approximately $2.95 million in potential stock awards tied to performance and time-based vesting.
Key Events
-
Executive Stock-Based Incentive Plan Renewed
The Fiscal 2027 Long-Term Incentive (LTI) Bonus Program was renewed and amended, granting time-vesting Restricted Stock Units (RSUs) and performance-vesting Restricted Stock Units (PSUs) to the CEO, Executive Chairman, and CFO. The total potential value of these awards for executives is approximately $2.41 million.
-
Performance-Based Vesting for PSUs
Performance Stock Units (PSUs) will vest on the third anniversary of the grant date, with 50% based on the company's three-year average return on invested capital change and 50% on three-year cumulative revenue growth.
-
Director RSU Grants Approved
Non-employee Directors received RSU grants, with each of the six directors awarded 905 RSUs, representing approximately $90,000 in value per director based on the June 1, 2026 closing price of $99.41 per share. The total value for directors is approximately $540,000.
-
Executive Cash Bonus Program Amended
The Annual Executive Cash Bonus Program for Fiscal 2027 was amended, outlining target bonus levels and performance goal weightings, including Adjusted EBITDA (40%), Bookings (20%), Safety Goals (20%), and Personal Goals (20%).
Analysis
This filing details the renewed and amended compensation plans for Graham Corp's senior executives and non-employee directors for Fiscal Year 2027. The stock-based awards, totaling approximately $2.95 million in potential value, include both time-vesting and performance-vesting restricted stock units. The performance metrics for PSUs (return on invested capital and revenue growth) and cash bonuses (EBITDA, bookings, safety) align management incentives with key operational and financial objectives, which is important for long-term shareholder value. The grants were made when the stock was trading at a relatively high price, which is less dilutive for the company to deliver the intended compensation value.
At the time of this filing, GHM was trading at $107.10 on NYSE in the Technology sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $40.61 to $110.01. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.