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3D Systems Signs CEO on $23 Million Mega Contract

by • April 22, 2016 • No Comments

  • Vyomesh Joshi is the new CEO of 3D Systems and he may be set to earn additional than $23.3 Million over three years if he can turn this troubled firm around.

    The six-month search for a new CEO ended on April 1 (no joke…) with Joshi’s appointment. It is a return to business for the 62-year-old former Vice President of HP’s imaging and printing device group, who effectively retired in 2012 after 32 years with the innovation giant. He doubled the company’s printing profits after 11 years at the helm of that division, that means he comes with a solid track record.

    Vyomesh Joshi, former Hewlett-Packard Vice President of imaging and printing group, manufactures a point during the Reuters Technology Summit in San Francisco, California

    Vyomesh Joshi, former Hewlett-Packard Vice President of imaging and printing group

    3D Systems faces tough times

    It took an awe-inspiring box to tempt him back into business and take over at South Carolina-based 3D Systems. The company that has endured a few tough times of late thanks to rising costs, an acquisition-based strategy that involved buying 50 smaller in size firms in the space of four years, high end issues and a 72% decline in its stock value in 2015.

    Employees put the boot in, too, with a series of scathing Glassdoor reviews that created the business press. So the problems run deep.

    The company has solid products now, there is a fewthing to create on, at very least.

    Turning this ship around can take time and work

    It is yet going to take an experienced hand at the tiller to turn this ship around, yet. On the flip side, if Joshi accomplishes anything and so it may be seen as an improvement. If he does well, the rewards can be tremendous.

    His convoluted deal was announced in an SEC filing. Obviously there’s a lot going on in terms of bonuses, as his basic pay if $925,000 a year. A easy cash bonus of another $925,000 is just the begin, as and so it gets into the stock versions. For these to manufacture a worthwhile difference to his life and so Joshi can have to have a significant impact on the company’s stock price, so there are clear incentives to manufacture significant changes to the business.

    The stock versions get complicated

    Joshi gets the version to buy 250,000 at $15.85 and sell at $30 if the stock trades at additional than $30 for additional than 90 days. This comes with a $3.5 million valuation on its own and he in addition gets 50,000 restricted common stock versions that vest if the shares go above $30.

    That is worth $1.45 million and a additional 25,000 that vest if the stock price goes above $40. He gets a additional 150,000 restricted shares that can be worth $5.85 million if the shares breach the $40 barrier, too.

    Reichental got actually additional

    Now this may represent a huge turnaround for the company. Even if he accomplishes it, Joshi won’t bank as much as former CEO Avi Reichental, who was paid $24.5 million in his last three years at the helm. 3D Systems have learned a few valuable lessons, at very least, and have tied Joshi’s box to performance pretty than just his time at the helm.

    There are concerns of this box, as it may incentivise him to chase short-term gains to unlock the bonuses. He may, for instance, embark on an aggressive cost-cutting scheme that boosts the share price in the short-term, but leaves the company in poor shape for the next. His 32-year stint at HP suggests he does know the long game, yet, and Joshi is not one of those swift fix CEOs that jumps between jobs.

    First things initially

    This is all speculation, anyway, and Joshi just has to get 3D Systems’ house in order initially, that can inevitably mean streamlining the business and dealing with the fallout of the acquisition strategy.

    Once that is done, he can focus on growth and with 3D Systems begining of such a lowly position and so surely the just way is up for this embattled company.

    We can be watching with interest!


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