🥇 First rule of investing? Know when to save! Up to 55% off Investing Pro before BLACK FRIDAYCLAIM SALE

MicroVision CEO Sumit Sharma's Employment Terms Updated

EditorLina Guerrero
Published 07/25/2024, 05:46 PM
MVIS
-

MicroVision, Inc. (NASDAQ:MVIS), a company specializing in electronic components, announced on Wednesday the renewal of Chief Executive Officer Sumit Sharma's employment agreement. The new contract, effective from July 24, 2024, supersedes the previous agreement dated April 8, 2021.

The terms of Mr. Sharma's updated contract maintain his current base salary at $530,000, subject to discretionary adjustments by the company's Board of Directors. Additionally, he will be eligible for both short-term and long-term incentive compensations, including equity awards, although the specifics will be determined by the Board.

Mr. Sharma is also set to participate in MicroVision's Key Executive Severance and Change in Control Plan at the highest levels, as outlined in a previous SEC filing on June 10, 2024. This plan provides certain benefits in the event of a severance or a change in the company's control.

The CEO's short-term incentives include a bonus opportunity equal to 100% of his base salary, contingent on achieving specific financial and individual business objectives under the 2024 Executive Bonus Plan. Furthermore, the Board approved a long-term incentive grant of 1,125,000 restricted stock units for Mr. Sharma, with a vesting schedule of 33% per year over the next three years.

The agreement obligates Mr. Sharma to adhere to a confidentiality and invention assignment agreement, which includes customary non-solicit and non-compete clauses.

MicroVision, headquartered in Redmond, Washington, has confirmed that Mr. Sharma will continue to have access to the company's general employee benefits, such as expense reimbursement, retirement plans, insurance, and vacation time.

In other recent news, MicroVision, a leader in LiDAR technology, has reported its earnings and revenue results, showing modest financial outcomes while outlining strategic initiatives for future growth. The company anticipates key decisions from automotive OEMs in 2024 and projects revenue of $8 million to $10 million for the year, with a cash burn of $65 million to $70 million. Despite facing challenges in the competitive auto industry, MicroVision is focused on its MAVIN product and MOSAIK software, aiming to secure automotive OEM partnerships and expand into industrial markets.

MicroVision reported $1 million in Q1 2024 revenue, with a cash balance of $73 million. The company is engaged in seven RFQs for its MAVIN product and is exploring opportunities to monetize assets and bring in non-dilutive cash through licensing and partnerships in industrial markets. The company also highlighted its MOSAIK software's potential for sensor validation and cost savings for OEMs.

InvestingPro Insights

As MicroVision, Inc. (NASDAQ:MVIS) solidifies its executive leadership with the renewal of CEO Sumit Sharma's contract, investors may be looking closely at the company's financial health and market performance. According to recent data from InvestingPro, MicroVision holds a market capitalization of $237.66 million and has experienced a significant 578.19% revenue growth over the last twelve months as of Q1 2024. Despite these impressive growth figures, the company's operating income margin stands at -1247.52%, reflecting substantial expenses relative to its income.

InvestingPro Tips suggest that while MicroVision has more cash than debt on its balance sheet, it is quickly burning through cash, and analysts are not expecting profitability this year. Additionally, the stock has been quite volatile, with a significant price drop of over 70% in the last year. These factors, coupled with a high revenue valuation multiple, may suggest caution for investors considering the stock's future performance.

For investors seeking deeper insights and additional InvestingPro Tips, there are 12 more tips available on InvestingPro's platform for MicroVision. Utilize coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and explore the full range of expert analytics to inform your investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.