Friedman Industries Approves Key Employee Change of Control Severance Plan

Friedman Industries, Incorporated (NYSEAMERICAN: FRD) recently announced the approval of a Key Employee Change of Control Severance Plan by its Board on September 18, 2024. This plan is designed to provide certain named individuals with a one-time bonus in the event of their termination under specific circumstances surrounding a change in control event within the company.

Under the terms of the plan, if an employee’s contract is terminated by the individual for good reason, or by the Company without cause within three months prior to or 18 months after a change in control event at the Company, they would be entitled to receive a bonus. This bonus comprises a multiple of the individual’s base salary and average annual bonus, along with the individual’s pro-rata bonus for the year of termination.

In particular, the multiplier for the Company’s chief executive officer would be three, while the chief financial officer would have a multiplier of two. Additionally, as part of the severance plan, these named executives would receive a multiple of the Company’s annual contribution to their group health plan and up to $10,000 in outplacement services.

This move by Friedman Industries aims to ensure key employees are fairly compensated in the event their employment is affected during pivotal periods surrounding a change in control event within the company.

As per the filing dated October 7, 2024, this announcement is in line with the Company’s commitment to transparently disclose important corporate decisions to stakeholders and the public. Alex LaRue, the Chief Financial Officer, Secretary, and Treasurer of Friedman Industries, Incorporated, signed the report in compliance with the Securities Exchange Act of 1934.

This new development underscores Friedman Industries’ proactive approach to addressing employee concerns during times of transition and signals the company’s dedication to maintaining valuable talent within its ranks.

The market will likely be watching closely for any further updates or related developments following this strategic decision by Friedman Industries.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Friedman Industries’s 8K filing here.

About Friedman Industries

Friedman Industries, Incorporated engages in steel processing, pipe manufacturing and processing, and the steel and pipe distribution businesses the United States. It operates in two segments, Coil and Tubular. The Coil segment is involved in the conversion of steel coils into flat sheet and plate steel cut to customer specifications and reselling steel coils.