8-KMaterial Agreements

FLEX LTD. 8-K Report, Material Agreement (Aug 27, 2004)

Filed August 27, 2004For Securities:FLEX

Summary

This 8-K filing from Flextronics International Ltd. (FLEX) on August 27, 2004, reports a material definitive agreement related to executive compensation. Specifically, on August 23, 2004, the Board of Directors granted stock options to CEO Michael E. Marks. These options, totaling 1,375,000 ordinary shares, were granted at an exercise price of $11.53 per share, reflecting the closing market price on the grant date. The options are intended to recognize Flextronics' financial and operating performance and Mr. Marks' contributions. The vesting schedules for these options are detailed, with a significant portion vesting over time, indicating a long-term incentive structure tied to continued company performance and executive tenure.

Key Highlights

  • 1CEO Michael E. Marks granted 1,375,000 stock options on August 23, 2004.
  • 2The exercise price for the options is $11.53 per share, equal to the closing market price on the grant date.
  • 3The grant acknowledges Flextronics' financial and operating performance and the CEO's contributions.
  • 4A portion of the options vests one year after the grant date, with the remainder vesting monthly thereafter.
  • 5The vesting schedule is structured to incentivize long-term executive commitment and performance.
  • 6The filing is made pursuant to Item 1.01 of Form 8-K, concerning entry into a material definitive agreement.

Frequently Asked Questions

The primary purpose of this Form 8-K filing is to disclose a material definitive agreement, specifically the grant of stock options to Flextronics' CEO, Michael E. Marks, by the Board of Directors.

Michael E. Marks was granted an aggregate of 1,375,000 stock options at an exercise price of $11.53 per ordinary share.

The options have staggered vesting. For 1,000,000 shares, 50% vest one year after the grant date, and the remaining shares vest monthly thereafter. For the other options, 25% vest one year after the grant date, and the remainder vest monthly over the subsequent period.

The stock options were granted in recognition of Flextronics' financial and operating performance, as well as the CEO's contribution to that performance.