8-KMaterial Agreements

FLEX LTD. 8-K Report, Material Agreement (Nov 7, 2006)

Filed November 7, 2006For Securities:FLEX

Summary

This Form 8-K filing by Flextronics International Ltd. (FLEX) on November 7, 2006, primarily discloses a material definitive agreement concerning the deferred compensation plan of a Named Executive Officer, Werner Widmann. The Compensation Committee approved a one-time discretionary contribution of approximately US$2.3 million to Mr. Widmann's deferred compensation plan, to be funded in Euros. This event is significant as it details a substantial executive compensation award and changes to the plan's structure and vesting schedule.

Key Highlights

  • 1Flextronics International Ltd. filed a Form 8-K on November 7, 2006, reporting an event on November 1, 2006.
  • 2The Compensation Committee approved a one-time discretionary contribution of approximately US$2.3 million to Werner Widmann's deferred compensation plan.
  • 3The contribution will be funded in Euros at the prevailing exchange rate on the funding date.
  • 4Amendments were made to Mr. Widmann's deferred compensation plan.
  • 5Eligibility for future yearly salary-based contributions to Mr. Widmann's deferred compensation account has been eliminated.
  • 6A new, phased vesting schedule for the deferred compensation account has been implemented, with portions vesting annually from July 1, 2007, to July 1, 2011.
  • 7Vesting is contingent upon Mr. Widmann's continued employment with a subsidiary of the Company.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose a material definitive agreement regarding executive compensation, specifically a one-time discretionary contribution and amendments to the deferred compensation plan for Named Executive Officer Werner Widmann.

The Compensation Committee approved a one-time discretionary contribution of approximately US$2,300,000. This amount will be funded in Euros.

The vesting schedule has been amended to a phased approach: 10% on July 1, 2007, 15% on July 1, 2008, 20% on July 1, 2009, 25% on July 1, 2010, and the remaining balance on July 1, 2011. Vesting is conditional on continued employment with a subsidiary.

Yes, Mr. Widmann's eligibility for yearly contributions to his deferred compensation account based on a percentage of his salary has been eliminated under the amended plan.