Compass Diversified Announces Amendments to Management Services Agreement Reducing Management Costs and Further Strengthening Shareholder Alignment
Compass Diversified announced a Ninth Amended and Restated Management Services Agreement, reducing the base management fee from 2.00% to 1.25% of Adjusted Net Assets effective January 1, 2027. The company expects total 2027 management fees to decline by $19 million to $22 million compared to the existing formula, with base fees capped at $30 million for the year.
Key figures
- Guidance
- Reaffirms previously issued full-year 2026 outlook
- Base fee new
- 1.25%
- Base fee old
- 2.00%
- Fee savings 2027
- $19 million to $22 million
- Base fee cap 2027
- $30 million
- Tsr target price 2027
- $17.25
- Share alignment award rate
- 0.125%
- Performance based award rate
- 0.125%
AI analysis
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