Power Solutions International Names Nan (Richard) Hu as CEO Starting August 17, 2026

CEO Leadership Transition and Professional Background

Power Solutions International’s Board selected Nan (Richard) Hu following a comprehensive succession and search process assisted by Spencer Stuart. Mr. Hu’s appointment finalizes the Company’s careful search for its next CEO. His employment commencement is contingent upon customary pre-employment conditions outlined in his Employment Agreement.

Mr. Hu has significant expertise in automotive and powertrain industries. From 2020 to 2026, he served as Vice President and General Manager of the Americas Region for BorgWarner’s Turbo & Thermal Technology business unit, overseeing a multi-billion-dollar operation with full P&L responsibility. His leadership spanned manufacturing plants and technical centers in the U.S., Mexico, and Brazil, managing approximately 3,900 employees globally. Before BorgWarner, he was Senior Vice President and General Manager of Delphi Technologies’ Global Powertrain business unit and played a key role during its acquisition by BorgWarner in 2020.

Extensive Global Career and Operational Leadership

Mr. Hu’s career includes senior executive roles at Eberspächer as Vice President and Managing Director for Asia Pacific, and at Magna Steyr as General Manager for China and Korea. His tenure at Magneti Marelli further highlights his broad experience in global automotive supply chains and manufacturing operations.

With over 25 years of leadership across Asia, Europe, and the Americas, Mr. Hu’s expertise encompasses operations management, regional leadership, and multi-billion-dollar P&L oversight. The Board’s selection reflects a preference for candidates with deep automotive sector knowledge and proven success managing large, geographically diverse teams, aligning with Power Solutions International’s strategic goals.

Compensation Package and Salary Details

According to the Employment Agreement dated July 27, 2026, Mr. Hu will receive an annual base salary of $658,000, subject to annual review by the Compensation Committee. This salary forms the basis for his total compensation, including performance bonuses and long-term incentives.

He is eligible for an annual performance-based cash bonus targeting 70% of base salary, with a maximum payout of 140%, based on financial and strategic goals set yearly by the Compensation Committee. For 2026, the bonus will be prorated to reflect his August 17 start date.

Sign-On Bonus and Retention Incentives

Mr. Hu will receive a one-time cash sign-on bonus of $540,500, payable in two equal installments: the first within 30 days after his start date and the second within 30 days after the six-month anniversary. Repayment is required if he resigns without Good Reason or is terminated for Cause within 24 months, with 100% repayment if within 12 months and 50% if between 12 and 24 months.

Additionally, he will be granted a cash-settled phantom stock award valued at $1,129,326 at the March 2027 Board meeting, vesting ratably over three years. This staggered sign-on package encourages leadership continuity during Mr. Hu’s initial tenure.

Long-Term Incentive Awards and Equity Compensation

Starting in 2027, Mr. Hu will receive annual long-term incentive awards comprising two parts: a phantom stock grant at 80% of base salary vesting over three years, and a cash long-term incentive award targeting 40% of base salary, capped at 1.5 times the target, subject to performance metrics and vesting conditions set by the Compensation Committee.

For 2026, he will receive prorated phantom stock and cash LTI awards from August 17 through December 31, with the phantom stock grant issued on his start date, ensuring immediate participation in the incentive program.

Benefits, Relocation Support, and Executive Perks

Mr. Hu will participate in all health, welfare, retirement, and executive benefit plans on terms comparable to other senior executives. He will receive a $1,000 monthly automobile allowance. To support his relocation from the Detroit to Chicago metropolitan area, where the Company’s headquarters in Wood Dale, Illinois, are located, he will be provided up to $50,000 in relocation assistance.

The relocation assistance is subject to prorated repayment under certain conditions, similar to the sign-on bonus. These benefits illustrate the Company’s commitment to attracting and retaining experienced leadership while managing relocation logistics.

Severance and Termination Provisions

If terminated without Cause or if Mr. Hu resigns for Good Reason, he will receive 12 months of base salary continuation, a prorated annual KPI bonus based on actual performance, and 12 months of Company-subsidized COBRA health coverage. These severance benefits require execution of a general release and compliance with restrictive covenants and cooperation obligations.

Following a Change in Control, if Mr. Hu is terminated without Cause or resigns for Good Reason within 24 months, he will receive enhanced severance: a lump sum of 12 months’ base salary, lump sum payments equal to target KPI bonus and Cash LTI prorated for the termination year, and 12 months of COBRA coverage. No excise tax gross-up will be provided, and payments are subject to Section 280G limitations.

Restrictive Covenants and Corporate Governance

The Employment Agreement imposes 12-month post-termination non-compete and non-solicitation covenants, along with perpetual confidentiality and non-disparagement obligations. All incentive compensation is subject to the Company’s clawback policies under SEC Rule 10D-1 and Nasdaq listing standards.

Mr. Hu will enter into an indemnification agreement consistent with those provided to other directors and officers, and the Company will maintain directors and officers liability insurance throughout and after his employment as specified.

Interim CEO Transition and CFO Continuity

Upon Mr. Hu’s start on August 17, 2026, Xun (Kenneth) Li will step down as Interim CEO but continue as Chief Financial Officer, ensuring financial leadership continuity. On July 23, 2026, the Board approved cash compensation for Mr. Li’s interim CEO service effective May 12, 2026, although specific rates were not fully disclosed.

At-Will Employment and Independent Appointment

Mr. Hu’s employment is at-will with no fixed term, allowing the Company to terminate employment in accordance with applicable laws and the Employment Agreement’s provisions. He will report directly to the Board of Directors as the principal executive officer responsible for the Company’s strategy and operations.

The Board confirmed no family relationships or related person transactions exist between Mr. Hu and the Company requiring disclosure. His appointment resulted from an independent search process without arrangements or understandings with other parties.