Power Integrations strengthens executive team with performance-based inducement equity grants
Power Integrations, Inc. (Nasdaq: POWI), a leading innovator in high-voltage integrated circuits for energy-efficient power conversion, has announced a series of inducement equity awards granted to several recently appointed senior executives as part of its strategy to attract and retain top leadership talent. The equity incentives, issued on February 2, 2026, were awarded under the company’s Amended and Restated 2025 Inducement Award Plan and align with Nasdaq Listing Rule 5635(c)(4), which allows equity compensation to be provided as a material inducement for new hires.
The company confirmed that the awards include a combination of restricted stock units (RSUs), performance stock units (PSUs), and long-term performance stock units (PRSUs). These equity incentives were granted to newly hired executives who joined Power Integrations over the past several months, reflecting the company’s continued investment in strengthening its leadership team as it navigates evolving market opportunities in the semiconductor and power electronics sectors.
Among the recipients is Nancy Erba, who began her tenure as chief financial officer in January 2026. As part of her inducement package, she received 64,487 RSUs, 9,136 PSUs, and 42,992 PRSUs at target levels. The company described the award as a key element of its compensation structure designed to align executive performance with long-term shareholder value creation. By tying a significant portion of compensation to equity-based incentives, Power Integrations aims to encourage strategic decision-making that supports sustainable growth and operational excellence.
In addition to the grant awarded to the CFO, the company issued equity incentives to Chris Jacobs, who joined Power Integrations as senior vice president for marketing and product strategy in January 2026. Jacobs received 42,131 RSUs, 6,019 PSUs, and 18,056 PRSUs at target. His role is expected to play a crucial part in shaping the company’s global marketing direction and product positioning, particularly as demand for advanced power-conversion solutions continues to grow across industries such as electric vehicles, renewable energy, and high-performance computing.
Julie Currie, who assumed the role of chief people and transformation officer in November 2025, also received an inducement grant consisting of 19,346 PRSUs at target. Power Integrations noted that Currie’s responsibilities include overseeing organizational transformation initiatives, talent development strategies, and workforce engagement programs designed to support the company’s long-term objectives. The equity award reflects the importance of leadership roles that extend beyond traditional technical and financial functions, highlighting the company’s emphasis on cultural and operational transformation.
According to the announcement, the RSUs granted to the executives will vest annually over a four-year period, contingent upon the recipients’ continued employment with the company through each vesting date. This structure is intended to promote retention while reinforcing long-term commitment to Power Integrations’ strategic vision. By spreading vesting schedules over multiple years, the company encourages leaders to remain focused on delivering consistent results rather than short-term gains.
The PSUs and PRSUs included in the inducement awards are performance-based equity incentives tied to specific company metrics. PSUs will vest based on performance results for the 2026 fiscal year, while PRSUs are linked to longer-term goals extending through 2028. The exact number of shares that ultimately vest will depend on the achievement of performance targets determined by the talent and compensation committee of Power Integrations’ board of directors. These targets are designed to measure financial performance, operational efficiency, and strategic milestones aligned with the company’s growth roadmap.
Notably, the structure of the awards allows for vesting outcomes of up to 200 percent of the target number of PSUs or PRSUs if performance metrics exceed expectations. This performance-based design underscores the company’s focus on rewarding exceptional results while maintaining accountability and alignment with shareholder interests. At the same time, vesting remains subject to continued service through December 31 of the applicable performance year, reinforcing the importance of leadership continuity.
Power Integrations emphasized that the inducement awards were granted in accordance with the terms and conditions outlined in the applicable RSU, PSU, and PRSU agreements, as well as the company’s Amended and Restated 2025 Inducement Award Plan. These agreements provide detailed guidelines governing vesting schedules, performance measurement criteria, and other conditions associated with the equity incentives.
The grants were reviewed and approved by the talent and compensation committee of the company’s board of directors, ensuring compliance with Nasdaq Listing Rule 5635(c)(4). This rule permits companies to issue equity awards outside of standard shareholder-approved compensation plans when such grants serve as a material inducement to employment for newly hired executives. By following this regulatory framework, Power Integrations maintains transparency and adherence to governance standards while supporting competitive recruitment practices.
Industry observers note that inducement equity awards have become increasingly common in the semiconductor sector, where competition for experienced leadership talent remains intense. Companies often use a combination of RSUs and performance-based stock units to attract executives capable of guiding innovation, managing complex supply chains, and navigating rapidly changing market conditions. Power Integrations’ latest grants reflect broader trends within the technology industry, where long-term incentives are viewed as essential tools for aligning executive priorities with corporate strategy.
The announcement also highlights the company’s ongoing commitment to strengthening its executive team during a period of significant transformation within the global electronics market. As demand grows for energy-efficient power solutions in applications ranging from consumer electronics to industrial automation, Power Integrations continues to expand its leadership capabilities to support product innovation and market expansion. Bringing in experienced executives with expertise in finance, marketing, and organizational development positions the company to capitalize on emerging opportunities while maintaining operational resilience.
Beyond individual compensation packages, the inducement awards signal a broader strategic focus on aligning leadership incentives with long-term performance metrics. By linking a substantial portion of executive compensation to company results, Power Integrations reinforces a culture of accountability and performance excellence. This approach also reflects evolving investor expectations, as shareholders increasingly prioritize governance practices that tie executive rewards to measurable outcomes.
Power Integrations’ decision to grant inducement awards shortly after the executives assumed their new roles underscores the importance of seamless leadership transitions. The company has emphasized that attracting high-caliber talent is critical to sustaining its competitive edge in the semiconductor industry, where innovation cycles are rapid and technological advancements drive market differentiation. Equity incentives help ensure that new leaders are fully invested in the company’s long-term success from the outset of their tenure.
As the semiconductor landscape continues to evolve, companies like Power Integrations are placing greater emphasis on strategic leadership appointments that support both technological innovation and operational efficiency. The inducement grants represent not only a compensation mechanism but also a reflection of the company’s confidence in its newly appointed executives and their ability to drive future growth.
With a combination of time-based and performance-based equity incentives, Power Integrations aims to balance retention, motivation, and shareholder alignment. The structure of the RSUs, PSUs, and PRSUs provides flexibility while ensuring that rewards are closely tied to the company’s financial and strategic achievements over the coming years. By adhering to Nasdaq guidelines and maintaining transparent governance practices, the company continues to demonstrate its commitment to responsible leadership and sustainable value creation.
Overall, the announcement highlights Power Integrations’ proactive approach to building a strong executive team capable of guiding the company through a dynamic and competitive market environment. As new leaders step into key roles across finance, marketing, and organizational transformation, the inducement equity awards serve as both an incentive and a statement of the company’s long-term vision for growth, innovation, and operational excellence.
Source link: https://www.businesswire.com
