Clearwater Paper Corporation has renewed the employment agreement with Arsen S. Kitch, who will continue in his role as President and Chief Executive Officer, according to a recent SEC filing. According to data, while the company faces current profitability challenges, analysts expect a return to profitability in 2025. The new contract, effective as of Monday, April 1, 2025, supersedes the previous agreement dated from April 1, 2020.

Under the new one-year agreement, which automatically extends for additional one-year terms unless either party opts out, Kitch will maintain his annual base salary of $1,000,000. His compensation package also includes eligibility for an annual bonus with a target of 100% of his base salary and long-term incentive awards targeted at 200% of his base salary. These incentives are consistent with his prior year's compensation and are subject to periodic review by the company's Compensation Committee.

The agreement stipulates that Kitch will also continue to serve as a member of Clearwater Paper's Board of Directors and be nominated for re-election during his tenure. As for the structure of his long-term incentives, they will consist of 70% performance shares with three-year cliff vesting and 30% time-vested restricted stock units with three-year ratable vesting, unless altered for future awards.

In the event of termination without cause, death, disability, or resignation for good reason, Kitch will receive a severance package including 18 months of base salary, a pro-rated annual bonus, and extended health benefits. A change of control scenario would enhance this package to 2.5 times his base salary plus target bonus, along with 2.5 years of health benefits. Notably, he will not receive an excise tax gross-up with change of control payments.

This information is based on a press release statement filed with the SEC.