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KVH Industries Grants CEO $100 Million Equity Award, Or Half the Firm’s Market Cap
Satellite services firm files quarterly report late after not being able to split the financials of a divestiture from rest of company.
December 7, 2022
With a market cap of nearly $200 million KVH Industries (KVHI), a provider of satellite internet, phone, and television to the marine market, is dangling a carrot at its new CEO worth half of the company’s value. In March, KVH’s CEO abruptly retired and was immediately replaced on an interim basis by Brent Bruun.

Four months after being named permanent CEO in June, KVH amended Bruun’s employment contract, raising his base salary to $448,000 retroactively and providing for a bigger bonus opportunity. In addition, KVH’s Compensation Committee awarded Bruun restricted stock units (RSUs) and stock options with a grant date fair value of $100 million.

The award is the equivalent of half of KVH’s market cap.

Separately, KVH also disclosed a control deficiency related to its divestiture of EMCORE, the firm’s inertial navigation business. In trying to provide the acquirer with EMCORE’s historical financial statements, KVH concluded it is unable to disaggregate EMCORE’s financials from the remaining business:

“Our accounting system has no functionality for this purpose.”

KVH was forced to separate the financials manually, resulting in its latest quarterly report being filed late.
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