CSP Inc. Announces Key Management Changes and New Director Appointment

LOWELL, MA – March 16, 2026 – CSP Inc. (NASDAQ: CSPI) has announced significant changes to its executive leadership team and Board of Directors, developments that hold meaningful implications for the company’s strategic direction and could potentially impact its share price.

Key Points from the Report

• Resignation of Chief Accounting Officer: Michael Newbanks, Vice President of Finance and Chief Accounting Officer, has tendered his resignation effective May 15, 2026.
• Succession Plan: Eric Sachs has been appointed as Vice President of Finance and Chief Accounting Officer, effective upon Mr. Newbanks’ departure.
• New Director Appointment: James J. LaBonty has been elected to the Board of Directors.
• Compensation and Incentives: Eric Sachs will receive a competitive compensation package, including a base salary, performance-based bonus opportunity, and a grant of restricted stock units that vest over four years.

Details of the Management Changes

Resignation of Michael Newbanks

On March 10, 2026, Michael Newbanks, who has served as CSP Inc.’s Vice President of Finance and Chief Accounting Officer since July 2017, notified the company of his decision to resign, citing a desire to spend more time with his family and pursue other opportunities. His resignation will become effective May 15, 2026. Importantly, the company disclosed that Mr. Newbanks’ resignation is not related to any disagreement with CSP Inc. or the Board regarding company operations, policies, or practices.

Mr. Newbanks will assist in the transition to his successor and is expected to provide consulting services to the company following his resignation date. His deep experience, including his prior role as Controller of CSP’s Modcomp subsidiary since 2003, marks the end of a significant tenure in CSP’s finance leadership.

Appointment of Eric Sachs as Chief Accounting Officer

CSP Inc. has named Eric Sachs as the incoming Vice President of Finance and Chief Accounting Officer. Mr. Sachs brings a strong background in finance, including recent roles as Chief Financial Officer of Advocator, Inc., a company supporting at-risk disabled populations, and as Director of Finance at Nicholas Financial, Inc. (NASDAQ-listed consumer finance firm).

• Credentials: Mr. Sachs is a licensed CPA, with a B.A. from Michigan State University and an MBA from Western Michigan University.
• Compensation Package:
  • Base Salary: \$195,000 per year
  • Annual Bonus Opportunity: Up to 30% of base salary, subject to achievement of company financial goals and individual KPIs
  • Equity Incentive: Grant of 8,000 shares of restricted stock, vesting over four years. This long-term incentive aligns Mr. Sachs’ interests with those of shareholders and could result in increased retention and performance focus.

Election of New Director: James J. LaBonty

CSP Inc. has also added James J. LaBonty to its Board of Directors. Mr. LaBonty is the Chief Executive Officer of OT Cyber Specialists, LLC, a consulting firm focused on cybersecurity for critical infrastructure in manufacturing, energy, utilities, and transportation. His prior experience includes a 12-year tenure at Pfizer Inc. as Director of Global Engineering, where he led Pfizer’s process automation group. His expertise in cybersecurity and automation is expected to bolster CSP’s strategic capabilities, particularly as the company continues to innovate in high-value technology markets.

Shareholder-Relevant and Potentially Price-Sensitive Information

• The departure of a long-serving Chief Accounting Officer, especially with a smooth transition and ongoing consulting, reduces execution risk but signals a meaningful leadership change in financial oversight.
• The recruitment of Eric Sachs, with a strong financial background and equity-linked compensation, indicates CSP’s focus on aligning management with shareholder interests and ensuring continuity in financial reporting and strategy.
• The addition of James J. LaBonty to the Board enhances the company’s expertise in cybersecurity and technology automation, areas critical to CSP’s future growth.
• The equity grant to Mr. Sachs may result in stock dilution over time as the restricted shares vest, but also signals confidence in future performance and retention of key talent.

Conclusion

These management and board changes at CSP Inc. are significant and may influence the company’s future strategy, operations, and potentially its market valuation. Investors should monitor upcoming communications for updates on the leadership transition and any strategic shifts the new appointees may drive.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult their own advisors and consider their individual circumstances before making any investment decisions. The information is based on the company’s March 2026 SEC 8-K filing and is believed to be accurate as of the date of publication but may be subject to change.

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