Somnigroup International Announces Scott Thompson's Contract Extension Until 2029
Somnigroup International Extends CEO Scott Thompson's Contract
In a significant move for Somnigroup International Inc. (NYSE: SGI), the company's Board of Directors has extended the employment contract of Scott Thompson, who serves as the Chairman, Chief Executive Officer, and President. This extension will now keep Thompson at the helm until December 31, 2029. The decision follows a recommendation from the Human Resources/Capital and Talent Committee, highlighting the board's confidence in Thompson's leadership.
Scott Thompson has been leading Somnigroup since September 2015. Under his guidance, the company's share price has soared by over 250%, outperforming key market indices including the SP 500 and the Russell 2000. Richard W. Neu, the Lead Director of Somnigroup's Board, expressed satisfaction in reaffirming their trust in Thompson, noting his ability to steer the company through a transformative era marked by significant growth and opportunity.
Under Thompson’s leadership, Somnigroup has not only strengthened its position in the global market but also successfully enacted several important domestic and international acquisitions. The company returned approximately $3 billion to shareholders through a mix of dividends and share repurchases, a testament to its financial health and robust strategy.
Thompson, reflecting on his extension, stated, "It is a privilege to continue leading Somnigroup. I am deeply grateful for the support from our employees, customers, and shareholders. Together, we will build on the momentum we have achieved so far, focusing on our long-term growth objectives."
As part of the agreement, Thompson will receive 1.2 million stock options in three equal tranches, each linked to progressively higher strike prices. The first tranche's strike price is set based on the company's stock price on June 23, 2025. Additionally, Thompson is set to receive a one-time transaction bonus of $10 million, recognizing his key role in the successful acquisition of Mattress Firm.
Somnigroup International stands as the largest bedding company globally, aiming to enhance lives through better sleep. The company boasts a robust supply chain capable of delivering innovative sleep solutions across more than 100 countries through its well-known brands, including Tempur-Pedic®, Sealy®, Stearns & Foster®, and Sleepy's®. With a committed omni-channel approach, they provide personalized experiences that cater to evolving consumer needs.
As the company moves forward, the focus will remain on executing its long-term growth strategy, capitalizing on market opportunities while ensuring shareholder satisfaction. With Thompson at the helm, both employees and the board appear optimistic about the bright future that lies ahead for Somnigroup International.
For further insights regarding the company's strategic moves and financial performance, Somnigroup encourages interested parties to reach out through their investor relations contact: Aubrey Moore at 800-805-3635 or [email protected]
With this contract extension, Somnigroup sets a strong precedent in the bedding industry, reinforcing the value of experienced leadership in navigating the complexities of business growth and shareholder engagement.