Limbach Holdings, Inc. Implements Executive Severance and Change in Control Plan

Limbach Holdings, Inc. recently announced the implementation of the Limbach Holdings, Inc. Executive Severance and Change in Control Plan, effective January 1, 2025. This plan aims to provide financial support to a group of senior-level executives (referred to as Covered Executives) following a qualifying termination of employment. The plan is designed to align with the company’s values and culture and enhance its ability to attract and retain highly qualified employees crucial to its success.

Under the Severance Plan, Covered Executives who are involuntarily terminated without cause (or who resign for good reason) outside a specified change in control period may be eligible for severance consisting of the executive’s annual base salary plus a bonus amount, along with COBRA Continuation Payments. For Covered Executives involuntarily terminated without cause (or resigning for good reason) within the specified change in control period, severance may include a higher multiple of the annual base salary and bonus amount, additional COBRA Continuation Payments, and accelerated or pro-rated vesting of outstanding equity awards.

The plan incorporates provisions addressing offsets, potential clawbacks, compliance with Internal Revenue Code Section 409A, and other administrative details. The full text of the Severance Plan, filed as Exhibit 10.1, provides comprehensive information regarding the plan’s specifics and terms.

In addition, Limbach Holdings, Inc’s Compensation Committee approved two new forms of restricted stock unit (RSU) award agreements under the Limbach Holdings, Inc. Amended and Restated Omnibus Incentive Plan on the same date. These new forms include a Performance-Based Restricted Stock Unit Agreement and a Time-Based Restricted Stock Unit Agreement.

The Performance-Based Restricted Stock Unit Agreement involves PSUs that vest based on pre-established performance goals linked to relative total shareholder return over a defined performance period. The Time-Based Restricted Stock Unit Agreement, on the other hand, includes RSUs that vest over a set schedule subject to continuous service. Both agreements outline tax obligations, restrictive covenants, and mechanisms for non-compliance consequences along with reflecting considerations of the Severance Plan.

Detailed information on the Performance-Based Restricted Stock Unit Agreement and Time-Based Restricted Stock Unit Agreement can be found in Exhibits 10.2 and 10.3 respectively.

These recent developments highlight Limbach Holdings, Inc.’s ongoing efforts to reinforce its executive compensation structure and align it with the company’s strategic objectives and operational requirements.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Limbach’s 8K filing here.

Limbach Company Profile

Limbach Holdings, Inc operates as a building systems solution company in the United States. It operates through two segments, General Contractor Relationships and Owner Direct Relationships. The company engages in the construction and renovation projects that involve primarily include mechanical, plumbing, and electrical services.