Summary
This 8-K filing by Flextronics International Ltd. (FLEX) on August 24, 2006, announces the establishment of performance-based bonus awards for several Named Executive Officers, including Werner Widmann, Peter Tan, Michael McNamara, Thomas Smach, and Nicholas Brathwaite. The compensation structure includes both a one-year bonus program for fiscal year 2007 and a three-year bonus program extending to fiscal year 2009. These bonus awards are tied to the achievement of specific revenue and Earnings Per Share (EPS) growth targets. The one-year bonus is set at $250,000, contingent upon meeting 2007 fiscal year targets, while the three-year bonus can be either $1,000,000 or $750,000, depending on performance over the three-year period ending in fiscal year 2009. Importantly, no payments will be made if the stipulated performance targets are not met, emphasizing a performance-driven compensation approach for key executives.
Key Highlights
- 1Flextronics International Ltd. established performance-based bonus awards for key Named Executive Officers.
- 2Bonuses are contingent upon the achievement of specific revenue and EPS growth targets.
- 3A one-year bonus program is in place for fiscal year 2007, with a potential payout of $250,000.
- 4A three-year bonus program is established for the period ending fiscal year 2009, with potential payouts of $1,000,000 or $750,000.
- 5Executive officers eligible include Werner Widmann, Peter Tan, Michael McNamara, Thomas Smach, and Nicholas Brathwaite.
- 6No bonus payments will be made if performance targets are not met, aligning executive compensation with company performance.