Advanced Energy shares fall on CEO resignation

FORT COLLINS – Advanced Energy Industries Inc. shares fell as much as 13 percent Tuesday following an announcement Monday that CEO Garry Rogerson planned to resign.

Shares fell to $16.52 Tuesday morning after opening at $19. The Fort Collins-based company makes solar and thin-films products.

New York City-based analyst Needham & Co. LLC downgraded the stock from a “buy” to “hold” Tuesday. Rogerson is viewed as a key figure in driving major operational changes aimed at strong earnings growth at Advanced Energy, Needham senior analyst Edwin Mok said in a report.

Rogerson’s planned departure follows the resignation of Advanced Energy’s solar unit President Gordon Tredger, who will receive a total of $241,000 in severance pay.
Tredger had worked for Advanced Energy since 2011, the same year Rogerson joined the company.

“We are concerned that multiple high-level executive departures in such a short time would cause major disruption of the business,” Mok said in his report.

“While AE continues to look for a replacement for Mr. Tredger, we question the effectiveness of the solar energy business now that Mr. Rogerson is also leaving,” Mok added.

Rogerson will receive severance of a single lump payment of $600,000, equal to 12 months of his base annual pay, in addition to a portion of his $600,000 target bonus. If his employment terminates at the end of August, for example, Rogerson will receive $400,000, or eight-twelfths of the bonus.

Rogerson will stay on until a new CEO is hired. He will received $66,000 per month as an adviser to Advanced Energy for six months after the company finds a new CEO.

Company shares had fallen more than 7 percent to $17.58 in afternoon trading. Advanced Energy employed about 400 people in Fort Collins last year, according to data compiled by BizWest.

Advanced Energy posted first-quarter earnings of $14.7 million compared with $6.8 million during the same period a year earlier.


You have 2 free articles remaining this month.
Want to see more? Login or Subscribe.

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertising

Social Network

 
Facebook Icon
Twitter Icon
LinkedIn Icon
 
©2016 BizWest The contents of this website are copyright BizWest Media, LLC. All rights reserved.
Use of any of this informatino or media on this site is strictly prohibited withotu express written consent.
×