8-KOther Events

CARPENTER TECHNOLOGY CORP 8-K Report, Corporate Update (Oct 15, 2008)

Filed October 15, 2008For Securities:CRS

Summary

Carpenter Technology Corp. (CRS) announced on October 15, 2008, a quarterly cash dividend of $0.18 per share, payable on December 4, 2008, to shareholders of record on October 28, 2008. This declaration demonstrates the company's continued commitment to returning capital to its shareholders, even amidst broader economic uncertainties in late 2008. Additionally, the company's Board of Directors approved fiscal year 2009 compensation for non-employee directors. While most annual retainers remained unchanged, there was a modest increase for the Audit/Finance Committee Chair. Director compensation also includes stock options, with the value of fiscal year 2009 grants being lower than those in fiscal year 2008, based on Black-Scholes-Merton valuation. The overall director compensation package is positioned within the 68th percentile of the company's peer group.

Key Highlights

  • 1Declaration of a quarterly cash dividend of $0.18 per share.
  • 2Dividend payment date set for December 4, 2008, with a record date of October 28, 2008.
  • 3Annual retainers for most non-employee directors remain unchanged for FY2009.
  • 4Annual retainer for the Audit/Finance Committee Chair increased by $5,000 to $15,000.
  • 5Each non-employee director granted options to purchase 8,000 shares at an exercise price of $22.35.
  • 6The aggregate value of FY2009 director stock option grants is lower than FY2008 grants.
  • 7FY2009 director compensation package is within the 68th percentile of the company's peer group.

Frequently Asked Questions

The quarterly cash dividend of $0.18 per share will be payable on December 4, 2008, to shareholders of record on October 28, 2008.

Non-employee director compensation for FY2009 includes annual retainers (part cash, part stock units), additional retainers for committee chairs, and stock options. While most retainers are unchanged, the Audit/Finance Committee Chair's retainer increased. Each director also received options to purchase 8,000 shares.

Yes, the aggregate value of stock options granted to directors for fiscal year 2009, as valued by the Black-Scholes-Merton methodology, is lower compared to the options granted in fiscal year 2008.

The overall compensation package for Carpenter Technology's non-employee directors in fiscal year 2009 is positioned within the 68th percentile of the company's peer group, indicating it is competitive but not at the highest end.