8-KMaterial AgreementsExhibits & Filings

FLEX LTD. 8-K Report, Material Agreement (Aug 24, 2006)

Filed August 24, 2006For Securities:FLEX

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.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report the establishment of performance-based bonus awards for Flextronics International Ltd.'s Named Executive Officers. This is considered an entry into a material definitive agreement.

The eligible executive officers are Werner Widmann, Peter Tan, Michael McNamara, Thomas Smach, and Nicholas Brathwaite. Werner Widmann and Peter Tan are eligible for both the one-year and three-year programs, while the others are eligible for the three-year program.

The bonuses are tied to the achievement of specific revenue and Earnings Per Share (EPS) growth targets. The exact targets are not detailed in this filing but are conditions for payment.

The one-year bonus program, covering fiscal year 2007, provides for a one-time payment of $250,000, provided the revenue and EPS growth targets for that fiscal year are met.

The three-year bonus program, covering the period ending with fiscal year 2009, offers a one-time payment of either $1,000,000 or $750,000, depending on the achievement of revenue and EPS growth targets over that three-year period.