DCO

Ducommun CEO's Severance Agreement Amid Potential Company Changes

Ducommun Incorporated, a Delaware corporation, has announced a Key Executive Severance Agreement with Stephen G. Oswald, who currently serves as the chairman, president, and chief executive officer of the company. The agreement aims to ensure continuity of management in the event of potential changes in control of the company.

In the event of a Change in Control, which includes scenarios like a tender offer for ownership of 30% or more of the outstanding voting securities, a merger or consolidation resulting in less than 50% ownership of voting securities, or the sale of substantial assets, the agreement outlines the entitlements for the executive.

If there is a Qualifying Termination of Employment during the Change in Control Period, Executive would be entitled to payments and benefits including two and a half times the annual base salary and the target annual bonus. Additionally, outstanding equity-based compensation awards would be treated in favor of the Executive.

In the event of a Qualifying Termination of Employment outside the Change in Control Period, the Executive would be entitled to payments and benefits such as full base salary for a period of two years and the target annual bonus under the company’s Bonus Plan.

The agreement also specifies the continuation of medical, life, and disability insurance benefits for a certain period following a Qualifying Termination of Employment, but these obligations would be reduced if the Executive obtains similar benefits from another employer.

As a result of these announcements, the company's shares have moved 0.6% on the market, and are now trading at a price of $57.55. For more information, read the company's full 8-K submission here.

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