Park Electrochemical Corp. will award an executive a bonus equal to a year’s salary if its printed circuit materials business is sold by April 30, 2019, a government filing said.
Park president and chief operating officer Christopher T. Mastrogiacomo will get a one-time lump sum payment of $365,730 when “the company consummates the sale or other disposition of all or a majority” of the electronics business to a third party, according to the Securities and Exchange document filed Tuesday.
On Jan. 4, the Melville company announced that it is conducting a “strategic evaluation,” including a possible sale, of its printed circuit materials business.
Later that month, the 64-year-old company announced that chief executive Brian E. Shore will voluntarily forgo more than $100,000 in annual salary in the fiscal year starting Feb. 26.
Shore, whose salary will be cut from $357,760 to $250,000 for fiscal 2019, said that he hoped to more closely “align” his compensation with that of hourly workers and signal he is “all in” as the company seeks to refocus its business on aerospace composites.
Park’s printed circuit materials unit has production and research facilities in Singapore; Lannemezan, France; Fullerton and Anaheim, California; and Tempe, Arizona.
Its printed circuit materials, which are used in digital devices and microwave applications, accounted for $82.5 million, or 72 percent of total net sales worldwide, in fiscal 2017. But in its fiscal 2017 annual report, the company said the printed circuit business is “characterized by intense competition” from much larger companies and “ongoing consolidation.”
The company has said that if a sale were completed, it would retain its aerospace manufacturing units in Singapore and Newton, Kansas, and its headquarters in Melville.
The company’s aerospace unit sells composite materials used to produce antennas and heat shields, gas management devices and nozzle components used in rocket motors. That business generated $32.1 million, or 28 percent, of total net sales worldwide in fiscal 2017. The company estimates the aerospace business will generate sales of $50 million to $54 million in fiscal 2019.
In February 2017, Park had 426 employees, with 370 working in manufacturing and 56 in executive, sales and marketing, research and development and general administrative roles.
The company has hired Manhattan investment bank Greenhill & Co. in connection with the possible sale.