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Park Electrochemical CEO to forgo more than $100G in salary

Brian E. Shore, CEO of Park Electrochemical Corp.

Brian E. Shore, CEO of Park Electrochemical Corp. Credit: /

Park Electrochemical Corp.’s chief executive will voluntarily forgo more than $100,000 in annual salary — 30 percent of the total — in the fiscal year starting Feb. 26, the company said in a securities filing.

CEO Brian E. Shore said he hoped to more closely “align” his compensation with that of hourly workers and signal he is “all in” as the company’s business moves away from making printed circuit board materials and toward aerospace composites.

Shore’s salary will be cut from $357,760 to $250,000 for fiscal 2019, according to the filing with the Securities and Exchange Commission, which was made public late Wednesday.

Melville-based Park Electrochemical makes printed circuit materials used in electronics equipment for telecommunications and internet infrastructure, and composite materials used to make antennas and heat shields, gas management devices and nozzle components used in rocket motors.

Shore previously took a voluntary salary cut in November 2014, when employees of the company’s units in Fullerton, California, and Tempe, Arizona, were forced to take reduced work hours in response to a weak market for printed circuit materials. At that time, Shore took a 20 percent salary cut and four other executives took 10 percent cuts. Work schedules at the sites were restored effective Jan. 5, 2015, and the executives’ salaries were restored.

This week’s salary disclosure comes on the heels of the company’s statement that it is considering the sale of its core business of printed circuit materials. But in a telephone interview, Shore said the latest salary reduction is not related to concerns about workers in the printed circuit materials business.

“The large majority of the workforce will be fine,” he said.

Instead, he said “it makes my pay more aligned with some of the hourly people in the company.”

Shore said he would not pass “judgment” on other companies, but “greed in this country has gotten a little out of hand.”

Shore’s total compensation, including option awards, was $357,760 in fiscal 2017, $482,360 in fiscal 2016 and $336,368 in fiscal 2015. He received option awards valued at $124,600 in fiscal 2016 and $284,900 in fiscal 2015.

Compensation for Shore and other top executives is set by a committee of the board of directors.

The CEO, whose father, Jerry Shore, co-founded Park Electrochemical, also owns 425,305 shares of company stock, according to a June filing.

No other executives were said to be taking pay cuts in 2018 in the SEC filing. Non-employee board directors are reducing their annual fees by $10,000; before the reduction, their fees ranged from $22,000 to $33,000.

Shares of Park climbed 2.3 percent to close Thursday at $21.71. The stock has risen about 18 percent in the past 12 months.

Last week Park said it had hired Manhattan investment bank Greenhill & Co. as part of a “strategic evaluation” of the printed circuit materials business, which accounted for 72 percent of sales in fiscal 2017.

The circuit materials unit, which has production and research facilities in Singapore; Lannemezan, France; Fullerton and Anaheim, California, and Tempe, Arizona, has faced stiff competition from Far East competitors.

If the unit is sold, the company would retain its aerospace manufacturing units in Singapore and Newton, Kansas, and its headquarters in Melville.

For the fiscal year ended Feb. 28, the company posted net sales of $145.9 million, down from $162.1 million in the previous year. Net income declined to $18 million from $20 million in the year-earlier period.

As of Feb. 26, Park had 426 employees, with 370 working in manufacturing and 56 in executive, sales and marketing, research and development and general administrative roles.

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