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.
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.
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.
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
SOURCE Servotronics, Inc.