Summary
Cintas Corporation (CTAS) filed an 8-K on July 27, 2006, reporting an amendment to the compensation structure for its non-employee directors, effective July 24, 2006. The key change involves an increase in the annual retainer for these directors from an unspecified previous amount to $40,000. While meeting fees for board and committee sessions, as well as compensation for telephonic meetings, remain unchanged, the adjustment to the annual retainer signals a renewed investment in attracting and retaining qualified independent board members. The annual stock option grant for directors also remains consistent at 1,000 shares.
Key Highlights
- 1Annual retainer for non-employee directors increased to $40,000.
- 2Board and Committee meeting fees remain unchanged at $2,750 and $1,200 per meeting, respectively.
- 3Compensation for telephonic meetings is set at 50% of in-person meeting fees.
- 4Fees for Committee Chairmen are unchanged: $8,000 for Audit Committee Chairman and $5,000 for other Chairpersons.
- 5Annual stock option grants for directors remain at 1,000 shares.
Frequently Asked Questions
The primary change is the increase in the annual retainer for non-employee directors to $40,000.
No, the fees for attending board and committee meetings remain the same at $2,750 and $1,200 per meeting, respectively. Telephonic meeting compensation is 50% of these amounts.
The compensation for Committee Chairmen remains unchanged: $8,000 for the Audit Committee Chairman and $5,000 for other Committee Chairpersons.
No, the number of shares covered by the annual stock option grant for directors remains at 1,000.