IEH Corporation Enters into Employment Agreement with Chief Executive Officer

On December 24, 2024, IEH Corporation (OTCMKTS:IEHC) has announced that it has entered into an employment agreement with its Chief Executive Officer and President, David Offerman. The agreement, effective as of January 1, 2025, is slated to expire on December 31, 2029. Mr. Offerman, who currently serves as the Chief Executive Officer and President of IEH Corporation and is a member of its board of directors, will be entitled to various benefits outlined in the agreement.

As part of the agreement, Mr. Offerman is set to receive a base salary of $491,745 per annum and will have the opportunity to earn an annual bonus of up to 100% of his base salary for each fiscal year based on performance targets and objectives set by the Compensation Committee of the board of directors. Additionally, he will be eligible for option grants under the Company’s 2020 Equity Based Compensation Plan, including an immediate grant of 25,000 options to purchase shares of common stock at an exercise price of $10.75 per share for the fiscal year ending March 31, 2025.

Throughout the term of the agreement, Mr. Offerman will also be considered for equity or performance awards under any long-term incentive compensation plan adopted by the Committee or the board of directors.

In the event of a termination without cause or a resignation for good reason, Mr. Offerman would be entitled to a severance payment equivalent to 36 months of his base salary, continued participation in health and welfare plans for up to 24 months, and all accrued but unpaid compensation. Furthermore, within three years of a change in control, if certain conditions are met, the Company would provide Mr. Offerman with comparable compensation and benefits to those in the event of a termination without cause or for good reason.

The employment agreement incorporates customary confidentiality, non-solicitation of employees, and non-competition obligations that extend beyond the termination of the agreement. It’s worth noting that the information provided in this agreement is not considered filed for the purposes of the Securities Exchange Act of 1934 or incorporated by reference into any filings under the Securities Act of 1933 or the Exchange Act.

This announcement came as part of a Current Report on Form 8-K filed with the Securities and Exchange Commission. An exhibit summarizing the employment agreement has been included in the filing for reference.

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

About IEH

IEH Corporation designs, develops, manufactures, and sells printed circuit board connectors and custom interconnects for high performance applications in the United States and internationally. The company's products are used as basic components of larger assemblies of finished goods. It markets its products directly to original equipment manufacturers, as well as through authorized representatives and distributors primarily to defense, aerospace, medical, industrial, test equipment, space, and commercial electronic markets.