KVH Industries, Inc. (NASDAQ:KVHI) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

KVH Industries, Inc. (NASDAQ:KVHI) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
ITEM 5.02. DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS

On November 29, 2016, the Board of Directors of KVH Industries, Inc. (the “Company” or “KVH”) appointed Mr. Donald W. Reilly, age 57, to serve as the Chief Financial Officer (“CFO”) of the Company effective December 19, 2016. Mr. Reilly will succeed John F. McCarthy, who has served as Interim CFO since May 27, 2016. KVH anticipates that Mr. McCarthy will remain an employee for a brief period to facilitate the transition.
Mr. Reilly served as Vice President, Corporate Controller and Chief Accounting Officer of Nortek, Inc., a publicly traded manufacturer and distributor of products and systems for use in building and remodeling homes and commercial structures, from November 2011 until its acquisition by Melrose Industries PLC in September 2016. From January 2011 to November 2011, Mr. Reilly served as Chief Financial Officer of Evergreen Solar, Inc., a publicly traded manufacturer of solar panels, wafers and cells. In August 2011, Evergreen Solar filed a voluntary petition for reorganization under the United States Bankruptcy Code. From 2000 until January 2011, Mr. Reilly held several senior financial positions at GTECH Corporation, a gaming technology and services company acquired by Lottomatica, SpA in August 2006 (and now part of International Game Technology PLC), including Chief Financial Officer of GTECH from June 2007 to January 2011 and Vice President of Business and Financial Planning from 2000 to 2007. Before joining GTECH, Mr. Reilly served as Vice President and Chief Financial Officer of Amtrol, Inc., a manufacturer of water system solutions and HVAC products, from 1998 to 2000 and as Corporate Controller and Director of Finance for A.T. Cross Company, a publicly traded manufacturer and distributor of fine writing instruments, from 1992 to 1997. Mr. Reilly began his career at Ernst & Young LLP, where he served as a senior audit manager in Providence, Rhode Island and later at its national office in Cleveland, Ohio.
Mr. Reilly will receive an annual base salary of $300,000 and will be eligible to receive an annual bonus under the Company’s 2017 bonus plan for executives in an amount of up to 50% of his base salary. Although the terms of the Company’s executive bonus plan for 2017 have not yet been established, the Company currently anticipates that 75% of the bonus will be based on company performance and 25% of the bonus will be based on personal performance goals to be set and agreed upon with the CEO during the first three months of Mr. Reilly’s employment.
In addition, management has agreed to recommend to the Compensation Committee of the Company’s Board of Directors that Mr. Reilly receive 22,000 shares of restricted stock of the Company. Subject to Mr. Reilly’s continued employment, the grant will vest over a four-year period, with 25% vesting on the first anniversary of the date of grant and an additional 25% vesting on each subsequent anniversary.

About KVH Industries, Inc. (NASDAQ:KVHI)

KVH Industries, Inc. is a manufacturer of solutions that provide high-speed Internet, television and voice services through satellite to mobile users at sea and on land. The Company also provides commercially licensed entertainment, including news, sports, music and movies, to commercial and leisure customers in the maritime, hotel and retail markets. It operates in two geographic segments, in the mobile communications, navigation and guidance and stabilization equipment industry. The Company develops and distributes training films and e-learning computer-based training courses to commercial maritime customers. It is also a manufacturer of navigational sensors and integrated inertial systems for defense and commercial guidance and stabilization applications. It designs, develops, manufactures and markets mobile communications products and services for the marine and land mobile markets, and navigation, guidance and stabilization products for both the commercial and defense markets.

KVH Industries, Inc. (NASDAQ:KVHI) Recent Trading Information

KVH Industries, Inc. (NASDAQ:KVHI) closed its last trading session down -0.15 at 10.70 with 62,573 shares trading hands.

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