ELMA, N.Y., Dec. 27, 2021 /PRNewswire/ -- Servotronics, Inc. (NYSE American - SVT) announced that Kenneth D. Trbovich has resigned as Chief Executive Officer and President and was removed as Chairman of the Board, after a nearly six-month-long internal investigation identified grounds for his termination.
While the Board of Directors conducts a search for a permanent replacement, the responsibilities of the CEO and President will continue to be carried out by other personnel, led by Chief Operating Officer James C. Takacs.
The Board's non-employee directors stated: "Our highly skilled workforce and experienced management team have ensured that Servotronics continues to deliver on its reputation for meeting and exceeding government, defense, commercial, consumer and other customers' high standards for quality and reliability, which has been built over more than six decades. This team has delivered sequential sales growth in the second and third quarters of this year, while continuing to invest in people, product development, and production capabilities that are designed to position Servotronics for the future. We look forward to providing Jim Takacs and his team with the resources they need to continue executing, while the Board conducts an active search for a new CEO."
Today's announcement follows a previously disclosed internal investigation, authorized by the Board on June 8 when Mr. Trbovich was placed on administrative leave, one day after a then-employee filed a civil complaint making allegations regarding the executive's conduct. The investigation was undertaken by independent, outside counsel.
On Dec. 1, Mr. Trbovich was informed that grounds for termination were identified during the investigation and a Dec. 22 meeting was scheduled for the Board to hear from the executive and consider the matter. On Dec. 21, Mr. Trbovich resigned as CEO and President. At its Dec. 22 meeting, the Board accepted his resignation, removed him as Chairman, and based on the findings of the investigation determined that he committed willful malfeasance that would have justified termination. The Company has not disclosed other findings of the investigation, as they relate to personnel matters.
While the former executive remains a director, the Company does not intend to renominate him for election to the Board at the 2022 annual meeting of shareholders.
ABOUT SERVOTRONICS
The Company is composed of two groups – the ATG and the CPG. The ATG primarily designs, develops and manufactures servo controls and other components for various commercial and government applications (i.e., aircraft, jet engines, missiles, manufacturing equipment, etc.). The CPG designs and manufactures cutlery, bayonets, pocket knives, machetes and combat knives, survival, sporting, agricultural knives and other edged products for both commercial and government applications.
FORWARD-LOOKING STATEMENTS
This news release contains statements that express the Company's opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties which may cause the actual results of the Company to be materially different from future results expressed or implied by such forward-looking statements. There are a number of factors that will influence the Company's future operations, including: uncertainties in today's global economy, including political risks, adverse changes in legal and regulatory environments, and difficulty in predicting defense appropriations, the introduction of new technologies and the impact of competitive products, the vitality of the commercial aviation industry and its ability to purchase new aircraft, the willingness and ability of the Company's customers to fund long-term purchase programs, and market demand and acceptance both for the Company's products and its customers' products which incorporate Company-made components, the Company's ability to accurately align capacity with demand, the availability of financing and changes in interest rates, the outcome of pending and potential litigation and the additional risks discussed in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date hereof. The Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise.
SERVOTRONICS, INC. (SVT) IS LISTED ON NYSE AMERICAN
Contact: svt@lambert.com
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SOURCE Servotronics, Inc.
