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Posted 31 August, 2023

METHODE ELECTRONICS INC appointed new CEO

CEO Change detected for ticker NYSE:MEI in a 8-K filed on 31 August, 2023.


  On August 31, 2023, Methode Electronics, Inc. (the "Company") announced that Donald W. Duda, its President and Chief Executive Officer, plans to retire once a successor is found.  

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Overview of METHODE ELECTRONICS INC
Automotive • Motor Vehicle Parts
Methode Electronics, Inc. engages in the manufacture of component and subsystem devices. It operates through the following segments: Automotive, Interface, Industrial, and Medical. The Automotive segment supplies electronic and electromechanical devices, and related products to automobile original equipment manufacturers. The Interface segment provides a variety of copper and fiber-optic interface and interface solutions for the aerospace, appliance, commercial food service, construction, consumer, material handling, medical, military, mining, point-of-sale, and telecommunications markets. The Industrial segment manufactures external lighting solutions, industrial safety radio remote controls, braided flexible cables, current-carrying laminated busbars, and devices. The Medical segment refers to the medical device business. The company was founded by William Joseph McGinley in 1946 and is headquartered in Chicago, IL.
Market Cap
$749M
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METHODE ELECTRONICS INC by TradingView
Relevant filing section
Item 5.02

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.


On August 31, 2023, Methode Electronics, Inc. (the "Company") announced that Donald W. Duda, its President and Chief Executive Officer, plans to retire once a successor is found. The Company's Board of Directors (the "Board") has begun an external search process to identify Mr. Duda's successor. The timing of Mr. Duda's retirement is subject to the identification of a new chief executive officer and is currently expected to be after the completion of the Company's fiscal year ending April 27, 2024. Mr. Duda has agreed to offer his resignation as a director as of the appointment of his successor.


On August 31, 2023, the Company and Mr. Duda executed a Retention, Transition Services and Consulting Agreement (the "Transition Agreement") for the purpose of outlining Mr. Duda's role in the Company's leadership transition following the appointment of his successor and setting his compensation relating to those transition services. The Transition Agreement provides that Mr. Duda will remain in the role of President and Chief Executive Officer at the discretion of the Board until a new chief executive officer is hired, at which time he will remain an employee of the Company with such title as may be determined by the Board until the last day of the third month following the hiring of his successor (his "retirement date"). During that time, he will continue to receive his current base salary and benefits and he will remain eligible for payment of his fiscal 2024 annual bonus award. In no event shall his retirement date be later than August 31, 2024.


Following his retirement date, and subject to the conditions outlined in the Transition Agreement (including his execution of a standard release), Mr. Duda will be engaged as a consultant for a period of nine months in order to assist the Company with respect to the transition of his duties and responsibilities. During such time, Mr. Duda will be paid a consulting fee in the amount of $350,000 per month, prorated for any partial months of services. Mr. Duda will also be restricted under the Transition Agreement from engaging in certain activities in competition with the Company and its subsidiaries or from soliciting suppliers, vendors, customers or employees of the Company or its subsidiaries, for a period ending fifteen months after the end of the consulting period.


The foregoing description of the Transition Agreement is qualified in its entirety by reference to the terms of such agreement, which is attached as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.