POWER SOLUTIONS INTERNATIONAL, INC. 8-K

What Happened
Power Solutions International, Inc. (PSIX) filed an 8‑K reporting that CEO Constantine (“Dino”) Xykis resigned effective May 12, 2026. The company and Mr. Xykis entered into a Resignation Agreement and General Release providing certain payments and benefits (subject to non-revocation and compliance). The Board appointed Chief Financial Officer Xun (“Kenneth”) Li as Interim Chief Executive Officer effective May 12, 2026 while the Board’s Nominating and Corporate Governance Committee continues its search for a permanent CEO.

Key Details

• Resignation date: May 12, 2026. Mr. Xykis had served as CEO since April 24, 2023.
• Cash/compensation provided under the Resignation Agreement (subject to terms and withholdings):
  • 2025 Key Performance Indicator bonus: $945,611.91
  • Remaining 2025 Long-Term Incentive bonus: $312,462.09
  • Total of those previously approved 2025 bonuses: $1,258,074.00
• Equity/other benefits: full deemed exercise of 28,334 vested stock appreciation rights (SARs), to be settled in cash per the SARs Agreement and subject to post‑separation exercise rules and the company’s insider trading policy.
• Health coverage: partial reimbursement of COBRA premiums for up to 12 months if timely elected and compliant with reimbursement procedures.
• Release and covenants: the agreement includes a general release of claims by Mr. Xykis and states that payment is not an admission of liability by the company.
• Interim CEO: Xun (“Kenneth”) Li, CFO since August 26, 2022, will serve as Interim CEO in addition to his CFO role and will continue to receive his existing CFO compensation (no additional cash pay currently; Compensation Committee may later adjust).

Why It Matters
This 8‑K signals an immediate leadership change at PSIX with the CFO stepping in as Interim CEO, which is important for operational continuity and investor oversight. The company will incur cash outflows related to the approved 2025 bonuses (about $1.26 million) and a cash settlement for vested SARs (amount not specified). Investors should note the board is actively searching for a permanent CEO and that the Resignation Agreement contains customary release and post‑separation provisions that limit further claims.