8-KLeadership Changes

CARPENTER TECHNOLOGY CORP 8-K Report, Executive Changes (Sep 3, 2010)

Filed September 3, 2010For Securities:CRS

Summary

Carpenter Technology Corp (CRS) filed an 8-K on September 3, 2010, to report a key executive transition. Michael L. Shor, Senior Vice President—AMO & PAO, announced his intention to retire in June 2011, transitioning to a non-executive Special Advisor role. This announcement signals a planned leadership change and the company's strategy for ensuring a smooth handover of responsibilities. In conjunction with this retirement announcement, the company promoted David L. Strobel to Senior Vice President—Global Operations. Mr. Strobel, with extensive experience at Carpenter Technology, will assume significant operational leadership. His compensation package includes a base salary, bonus potential, participation in deferred compensation plans, and significant equity-based incentives, including stock options and performance units tied to corporate and Total Shareholder Return (TSR) objectives. This promotion and compensation structure reflect the company's investment in experienced leadership for critical operational roles.

Key Highlights

  • 1Michael L. Shor, Senior Vice President—AMO & PAO, announced his retirement effective June 2011, with a transition to a Special Advisor role.
  • 2David L. Strobel has been promoted to Senior Vice President—Global Operations.
  • 3Mr. Strobel's compensation package includes a $250,000 annual base salary and a target annual bonus of 80% of base salary.
  • 4Mr. Strobel received a stock option grant valued at $37,500, vesting over three years.
  • 5He also received an additional stock option grant valued at $37,512 in July 2010.
  • 6A one-year performance unit opportunity was granted, tied to fiscal year 2011 corporate performance objectives.
  • 7A three-year performance unit opportunity was granted, tied to Total Shareholder Return (TSR) objectives through June 30, 2013.

Frequently Asked Questions

This 8-K filing is primarily to announce the upcoming retirement of a key executive, Michael L. Shor, and the promotion of David L. Strobel to a new executive leadership position, detailing his compensation and incentive structure.

David L. Strobel has been promoted to Senior Vice President—Global Operations. His compensation includes a $250,000 base salary, an executive bonus plan with an 80% target, participation in deferred compensation plans, stock options, and performance-based unit opportunities linked to corporate and TSR performance.

Key incentives include stock options with a grant date fair value of $37,500 vesting over three years, a one-year performance unit opportunity tied to fiscal year 2011 corporate objectives, and a three-year performance unit opportunity tied to Total Shareholder Return (TSR) performance.

Michael L. Shor will retire in June 2011. During the transition period, he will serve in a non-executive capacity as a Special Advisor to the CEO, William Wulfsohn, to ensure a smooth handover of his responsibilities.