8-KMaterial AgreementsExhibits & Filings

COPART INC 8-K Report, Material Agreement (Aug 3, 2006)

Filed August 3, 2006For Securities:CPRT

Summary

Copart, Inc. (CPRT) filed an 8-K on August 3, 2006, detailing the approval and subsequent payment of executive bonuses for the fiscal year ended July 31, 2006. Shareholders approved the Executive Bonus Plan on December 6, 2005, which allows the Compensation Committee to set performance targets and award bonuses based on metrics such as revenue, earnings per share, and return on equity. The plan includes a maximum payout of $2,000,000 per individual, with the Committee retaining discretion to adjust awards. Following the close of the fiscal year, the Compensation Committee approved specific cash bonus payments to key executive officers. Notably, CEO Willis J. Johnson received a bonus of $1,050,000, and President A. Jayson Adair received $800,000. Additional bonuses were also awarded to other executives, including James E. Meeks ($450,000), David L. Bauer ($250,000), and Vincent W. Mitz ($250,000). These payments, while substantial, were stated to be less than the amounts dictated by the bonus plan's formula.

Key Highlights

  • 1Shareholder approval of Copart's Executive Bonus Plan occurred on December 6, 2005.
  • 2The Bonus Plan allows for performance-based awards tied to various financial metrics like revenue, EPS, and ROE.
  • 3A maximum bonus payout of $2,000,000 per executive is stipulated in the plan.
  • 4The Compensation Committee has discretion to adjust bonus amounts.
  • 5For fiscal year 2006, the CEO and President were eligible for bonuses based on revenue targets.
  • 6Significant cash bonuses were approved on July 19, 2006, for the fiscal year ended July 31, 2006.
  • 7CEO Willis J. Johnson received a $1,050,000 bonus, and President A. Jayson Adair received $800,000.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report the entry into a material definitive agreement, specifically the approval of Copart's Executive Bonus Plan by its shareholders, and to disclose the subsequent payments of cash bonuses made to executive officers for the fiscal year ended July 31, 2006.

The Executive Bonus Plan allows performance goals to be based on objectives such as earnings per share, operating cash flow, operating income, profit after tax, profit before tax, return on assets, return on equity, return on sales, revenue, and total shareholder return, as defined within the plan.

The filing states that the approved cash bonus payments for fiscal year 2006 were less than the awards dictated by the bonus plan's formula, indicating the Compensation Committee exercised its discretion to reduce the amounts.

The largest bonus payments were made to CEO Willis J. Johnson, who received $1,050,000, and President A. Jayson Adair, who received $800,000.