What is the primary goal of Flextronics' executive compensation strategy?

The primary goal is to attract superior executive talent, retain and motivate them, reward past performance, provide incentives for future performance, and align the executives' interests with those of the shareholders, ultimately enhancing shareholder value.

How is executive compensation structured to ensure performance alignment?

Compensation is structured with key features like annual and long-term cash bonuses that are earned only upon achieving pre-established earnings per share (EPS) and revenue growth targets. Stock-based compensation directly aligns executives with shareholders, and deferred compensation elements vest over time to promote retention. A substantial majority of compensation is designed to be performance-based and at-risk.

Does Flextronics have employment agreements or severance packages for its executive officers?

No, Flextronics generally does not enter into employment or severance agreements with its executive officers. This provides the board with flexibility to remove an executive if it's in the company's best interest. Separation or severance arrangements are approved by the Compensation Committee based on specific circumstances.

How does Flextronics determine executive compensation levels compared to the market?

For the CEO and CFO, the Compensation Committee reviews compensation levels against industry and high-technology peer groups, aiming for compensation at or above the 75th percentile of a composite of these groups and broader survey data. For other executives, compensation is structured based on responsibilities and market data from broad industry and technology surveys, also targeting the 75th percentile.

FLEX 10-K FY2007 Annual Report — Revenue, Net Income, EPS

Summary

This filing details the executive compensation for Flextronics International Ltd. (FLEX) for the fiscal year ended March 31, 2007. The company's compensation philosophy aims to attract and retain top talent by aligning executive interests with shareholder value through performance-based incentives, stock awards, and long-term retention plans. A significant portion of compensation is performance-based and at-risk, with base salaries, annual and long-term cash bonuses, and stock-based compensation forming the core components. The company also utilizes deferred compensation plans to promote executive retention and provide long-term savings opportunities.

Key Highlights

1Executive compensation is structured around attracting, retaining, and motivating executives while aligning their interests with shareholders.
2A substantial portion of executive pay is performance-based and 'at-risk,' including annual and long-term cash bonuses tied to EPS and revenue growth targets.
3Stock-based compensation, including stock options and share bonus awards, is a key component to align executive and shareholder interests.
4Deferred compensation plans are utilized to promote executive retention, with vesting over several years or contingent on specific performance metrics.
5The Compensation Committee engages independent consultants (Pearl Meyer & Partners) to advise on executive compensation matters.
6Named executive officers do not have employment or severance agreements, allowing the board flexibility.
7Executive compensation is benchmarked against peer groups in the industry and broader high-technology sectors, targeting compensation at or above the 75th percentile.

FLEX LTD. Annual Report (Amendment), Year Ended Mar 31, 2007

Summary

Key Highlights

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