8-KLeadership Changes

CARPENTER TECHNOLOGY CORP 8-K Report, Executive Changes (Aug 4, 2010)

Filed August 4, 2010For Securities:CRS

Summary

This Form 8-K filing by Carpenter Technology Corporation (CRS) on August 4, 2010, primarily concerns the Human Resources Committee's finalization of fiscal year 2011 executive compensation packages. The report details base salaries, potential incentive cash compensation, and long-term incentive awards, including performance stock units and stock options for key executives, including the CEO. Investors should note that the compensation structures are designed to align executive pay with both individual and company performance, utilizing metrics such as operating income, return on net assets, revenue, on-time delivery, safety objectives, total shareholder return (TSR), and earnings per share (EPS). The filing provides specific targets and potential payouts, offering transparency into how executive remuneration will be determined for the upcoming fiscal year.

Key Highlights

  • 1Fiscal year 2011 executive compensation packages finalized for NEOs, including CEO.
  • 2Base salaries for FY2011 are detailed, with some continuity from FY2010 and specific adjustments for CFO.
  • 3Incentive cash compensation is tied to corporate performance goals: operating income, RONA, revenue, on-time delivery, and safety.
  • 4Potential cash bonuses for FY2011 range from 20%-100% of base salary at threshold/target to 160%-200% at maximum performance.
  • 5Long-term incentives include performance stock units based on three-year TSR (Category 1) and one-year EPS (Category 2).
  • 6Stock options were granted to NEOs with an exercise price of $34.95, the closing price on the grant date.
  • 7The compensation committee considered individual and company performance, responsibilities, and market data in setting compensation.

Frequently Asked Questions

The main purpose of this 8-K filing is to report the finalization of fiscal year 2011 executive compensation packages for Carpenter Technology Corporation's Named Executive Officers (NEOs) by the Human Resources Committee of the Board of Directors.

Executive bonuses for FY2011 will be determined based on corporate performance goals including operating income, return on net assets (RONA), revenue, on-time delivery, and safety objectives.

Long-term compensation includes performance stock units with goals based on three-year total shareholder return (TSR) and one-year earnings per share (EPS). Additionally, stock options were granted to executives.

The stock options were granted with an exercise price of $34.95 per share, which was the closing price of Carpenter Technology Corporation's stock on the date of the grant.