8-KLeadership Changes

COHERENT CORP. 8-K Report, Executive Changes (Aug 20, 2008)

Filed August 20, 2008For Securities:COHR

Summary

This Form 8-K filing by II-VI Incorporated (now Coherent Corp.) on August 20, 2008, primarily details the granting of Performance Share Awards to its named executive officers. These awards, under the Company's 2005 Omnibus Incentive Plan, are designed to incentivize performance over a 24-month period ending June 30, 2010. The awards are tied to the achievement of specific goals related to consolidated revenue and consolidated net cash provided by operating activities. Investors should note the performance-based nature of these awards, which aim to align executive compensation with the company's financial results. The structure allows for payouts ranging from 0% to 150% of target awards based on the degree of achievement of revenue and cash flow goals, with payouts for each metric being independent. The filing provides the target award amounts for key executives, including the CEO and CFO, offering transparency into their potential equity compensation tied to future company performance.

Key Highlights

  • 1II-VI Incorporated granted Performance Share Awards to named executive officers on August 16, 2008.
  • 2The awards are part of the 2005 Omnibus Incentive Plan and cover a 24-month performance period ending June 30, 2010.
  • 3Performance is measured against consolidated revenue and consolidated net cash provided by operating activities.
  • 4Payouts are structured to reward performance from 80% up to 150% of target award levels.
  • 5Achieving 100% of performance goals results in 100% of the target award.
  • 6Payouts for revenue and cash flow awards are independent of each other.
  • 7Specific target award amounts for key executives like the CEO and CFO are disclosed.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose the granting of Performance Share Awards to named executive officers of II-VI Incorporated. These awards are performance-based and are intended to incentivize executives to achieve specific financial goals over a defined period.

The Performance Share Awards are tied to two key financial metrics: consolidated revenue and consolidated net cash provided by operating activities. The achievement of pre-determined goals for these metrics over the 24-month performance period will determine the payout.

The payout structure is tiered. If performance goals are not met (below 80%), no award is earned. Achieving 80% to 99.99% of a goal earns between 50% and 99.99% of the target award. Reaching 100% of the goal earns 100% of the target award. Exceeding 100% of the goal, up to 120% or more, can result in payouts ranging from 100.01% up to 150% of the target award.

No, the payouts for the Revenue Awards and Cash Flow Awards are independent. This means that the achievement of revenue goals does not depend on the achievement of cash flow goals, and vice versa, allowing for separate incentives and potential payouts for each metric.