8-KOther Events

COHERENT CORP. 8-K Report, Corporate Update (Nov 24, 2015)

Filed November 24, 2015For Securities:COHR

Summary

This 8-K filing from II-VI Incorporated (formerly Coherent Corp.) on November 24, 2015, announces a significant revision to its Fiscal Year 2016 Executive Compensation Program. Responding to shareholder feedback, the Compensation Committee has eliminated the "June Award" and replaced it with a more traditional restricted share grant that cliff vests three years from the grant date. This change reflects an effort by the company to align executive compensation more closely with investor preferences and standard corporate governance practices. The new restricted share awards were granted on November 20, 2015, and represent approximately 30% of the total targeted equity award for each executive officer. The company indicates that it will continue to work with its compensation consultant to evaluate further potential adjustments for fiscal year 2017 and beyond, signaling a commitment to ongoing review and responsiveness to stakeholder input.

Key Highlights

  • 1II-VI Incorporated is revising its FY2016 executive compensation program.
  • 2The "June Award" has been eliminated from the compensation structure.
  • 3A new restricted share grant will replace the "June Award".
  • 4The new restricted shares will cliff vest three years from the grant date.
  • 5These restricted shares were awarded on November 20, 2015.
  • 6The value of the new award is approximately 30% of each executive's total targeted equity award.
  • 7The changes were made in response to shareholder feedback received before the November 6, 2015 annual meeting.

Frequently Asked Questions

The primary reason for the change is to respond to feedback received from the Company's shareholders during engagement efforts prior to the annual meeting on November 6, 2015. The Compensation Committee decided to eliminate the "June Award" and replace it with a more traditional restricted share grant structure.

The "June Award" was eliminated. It has been replaced by a grant of restricted shares that will cliff vest three years after the grant date. These grants were made on November 20, 2015.

For each executive officer who received this award, the grant has a value equal to approximately 30% of the total targeted equity award for that executive officer.

Yes, the Compensation Committee will continue to engage with its independent compensation consultant to determine if additional changes are necessary for fiscal year 2017 and future years.