8-K: Coffee Holding Co. CEO Salary Restored, Bonus Eliminated

Coffee Holding Co., Inc. has amended its CEO's employment agreement, restoring his base salary to $450,000 and eliminating a previously outlined $1.6 million incentive bonus.

Summary

• Coffee Holding Co., Inc. has amended the employment agreement for its President and CEO, Andrew Gordon.
• Effective February 1, 2026, Mr. Gordon's base salary has been restored to $450,000 per annum.
• This reverses a previous reduction to $80,000 per annum made by Amendment No. 1.
• A make-whole payment will be issued to Mr. Gordon for the difference in salary since February 1, 2026.
• The incentive bonus of $1.6 million, contingent on employment until January 1, 2030, has been eliminated.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive development, as it restores the CEO's salary and addresses a prior reduction, though the elimination of a significant bonus opportunity is a notable counterpoint.

Positives

• Restoration of CEO's base salary to a more substantial $450,000 per annum, effective retroactively from February 1, 2026.
• A make-whole payment will compensate the CEO for the salary reduction period.

Negatives

• Elimination of a potential $1.6 million incentive bonus that was tied to continued employment until January 1, 2030.

Future Outlook

The filing does not contain specific forward-looking statements or guidance beyond the terms of the amended employment agreement.

Management Comments

• The compensation committee authorized and approved Amendment No. 2 to the Amended and Restated Employment Agreement.
• Amendment No. 2 restores Mr. Gordon's base salary to $450,000 per annum effective as of February 1, 2026.
• Amendment No. 2 provides for Mr. Gordon to receive a make-whole payment as soon as practicable after Amendment No. 2 is executed for the amount of base salary he would have received since February 1, 2026 had his base salary been paid at the rate of $450,000 per annum.
• Amendment No. 2 eliminates the incentive bonus that had been provided for in Amendment No. 1 to the Employment Agreement.

Industry Context

StockSavvy.ai notes that adjustments to executive compensation, including salary restorations and bonus modifications, are common during periods of economic uncertainty or following strategic realignments within the coffee and beverage industry.

Stakeholder Impact

• Shareholders: The restoration of CEO salary and elimination of a large bonus may impact perceptions of executive compensation strategy and financial prudence.
• Employees: Changes in executive compensation can influence overall employee morale and perceptions of fairness.
• Management: The amendment clarifies the compensation structure for the CEO.

Next Steps

• The make-whole payment to Mr. Gordon will be processed as soon as practicable.
• The company will continue to operate under the terms of the amended employment agreement.

Key Dates

Keywords

Employment Agreement, CEO Compensation, Salary Restoration, Incentive Bonus, Executive Compensation