In redoing the bonus contracts for two of its executives, Enfield solar manufacturer STR Holdings said it is considering strategic alternatives for the company, including selling or liquidating the once-thriving firm.
On July 7, STR extended the bonus period for Alan Forman, senior vice president and general counsel, and Joseph Radziewicz, vice president and chief financial officer. The duo would have received bonuses if another company bought out STR by June 30, but now with the extension, Forman and Radziewicz will receive bonuses if they are still employed by the company and the sale occurs by Dec. 31.
The new agreement also changes the criteria for the awards, specifically saying Forman and Radziewicz will not receive the bonuses if “the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company.”
The bonuses would be $229,000 for Forman and $180,000 for Radziewicz.
STR was flying high with solar revenues in the early 2010s as worldwide demand for solar panels drastically increased sales of its encapsulants that protect the solar cells. At one point, STR was seeing solar sales at roughly $70 million quarterly and was named as one of the top technology firms in Connecticut by accountant Marcum in 2011.
Once the worldwide market was flooded with solar oversupply, STR sales plummeted; bottoming out after its top customer – California-based First Solar – dumped the company in January 2013. STR was forced to close its East Windsor facility, scrap expansion plans, and lay off 160 employees.
STR’s stock price was trading at $1.26 on Tuesday afternoon, near its all-time low. At its peak, the company’s stock was valued at nearly $26 in November 2011.
