Durham-based jewelry manufacturer Charles & Colvard Ltd. announced an executive compensation program that grants its executives restricted stock.
In an 8-k filing with the Securities and Exchange Commission, Interim Chief Financial Officer Peter Clint will receive 75,000 shares subject to the company hitting performance measures.
The company announced Clint was appointed interim CFO on Nov. 15, 2016. This came one week after the company announced the resignation of the CFO and Senior Vice President Kyle S. Macemore, who left to accept a position with another company.
Suzanna Miglucci, president and CEO of the company, received 150,000 shares of restricted stock scheduled to vest Feb. 23, 2018, subject to the same performance goals. If Miglucci receives the full amount she will own 365,000 shares of stock.
Clint had been corporate controller of the company since June 2016 and was given a 15 percent pay raise with the promotion, bringing his yearly compensation to $192,000 plus stock-based rewards. Clint, who is 54 years old, has held management positions in companies such as Oracle, Tekelec, and Ernst and Young.
The executive incentive plan measures performance based on personal and company measures, with a 50 percent weight on each. Eligible employees must achieve 100 percent of the company’s revenue and EBITDA thresholds in order to receive 50 percent of the vested stock reward. The other 50 percent of the vested stock will be awarded based on an employee’s fulfillment of the personal performance measures.
If certain EBITDA or revenue thresholds aren’t achieved, 100 percent of the vested stock could be forfeited.
Charles and Colvard is a jewelry manufacturer and distributor founded in 1995 which specializes in the production of moissanite, an inexpensive alternative to diamonds. Moissanite is another name for silicon carbide crystals, a synthetic material which was first discovered in meteorite craters.
The company’s most recent earnings showed a third quarter total net loss of $1.1 million in 2016 — an improvement from the nearly $2 million loss for the same period in 2015.
On Wednesday the company announced in a press release that it had expanded its line of Forever One moissanite jewelry into additional Helzberg Diamonds stores.
“Our customers are seeking retail locations to experience moissanite first-hand, and we’re thrilled to be able to send them to a growing number of Helzberg stores,” said Miglucci in the press release. “Our companies share a common customer, and this expansion initiative allows us to mutually address a market need that moissanite fulfills.” Miglucci said.
The company also announced in a press release Thursday that it would report fourth quarter and full year earnings and hold a conference call on March 9 to discuss the results with investors.
Shares of Charles & Colvard closed at $1.06 on Friday.
