8-K: NewtekOne Renews CFO Employment Agreement and Establishes Change in Control Agreement

NewtekOne, Inc. has renewed the employment agreement for its CFO, M. Scott Price, and established a change in control agreement providing severance benefits.

Summary

• NewtekOne, Inc. has renewed the employment agreement for M. Scott Price, the company's Executive Vice President and Chief Financial Officer, for an additional one-year term, effective May 15, 2024.
• Mr. Price will continue to receive his current compensation and benefits under the renewed agreement.
• The company also entered into a change in control agreement with Mr. Price, which provides for a severance payment equal to 1.15 times his annual base compensation if his employment is terminated within twelve months following a change of control.
• The full details of the employment agreement will be available in the company's next Quarterly Report on Form 10-Q.
• The form of the change in control agreement was previously filed as an exhibit to the company's Annual Report on Form 10-K for the period ending December 31, 2023.

Sentiment

Score: 7

Explanation: The document reflects standard corporate governance practices, indicating stability and security for a key executive. There are no indications of negative issues.

Positives

• The renewal of the CFO's employment agreement provides stability in the company's financial leadership.
• The change in control agreement provides security for the CFO in the event of a company acquisition or merger.

Risks

• The change in control agreement could result in a significant severance payment if a change of control occurs and Mr. Price's employment is terminated.

Future Outlook

The company will file the full details of the employment agreement in its next Quarterly Report on Form 10-Q.

Management Comments

• The company has renewed the employment agreement with M. Scott Price, the Executive Vice President and Chief Financial Officer.
• The company has entered into a change in control agreement with Mr. Price.

Industry Context

Executive employment agreements and change in control agreements are common practices in corporate governance to ensure stability and provide protection for key personnel.

Comparison to Industry Standards

• Change in control agreements are a standard practice for publicly traded companies to protect key executives during mergers or acquisitions.
• Severance multiples of 1 to 2 times base salary are common in change in control agreements for executive officers.
• The 1.15x multiple in this agreement is within the typical range for CFOs at similar companies.

Stakeholder Impact

• The renewal of the CFO's contract provides stability for shareholders.
• The change in control agreement provides security for the CFO.

Next Steps

• The full details of the employment agreement will be filed in the next Quarterly Report on Form 10-Q.

Key Dates

Keywords

employment agreement, change in control, CFO, executive compensation, severance, NewtekOne, financial officer