Summary
This 8-K filing from Flextronics International Ltd. (FLEX) reports on the departure of a key executive, Peter Tan, who retired as President and Managing Director of Flextronics Asia, effective March 31, 2007. While Mr. Tan is no longer an executive officer, he will remain employed through June 30, 2007, to ensure a smooth transition. His retirement package includes continued salary, benefits, and eligibility for performance bonuses. Notably, the vesting of a previously awarded deferred bonus of $3.2 million, plus earnings, will be accelerated under specific conditions.
Key Highlights
- 1Peter Tan, a named executive officer and President and Managing Director of Flextronics Asia, retired effective March 31, 2007.
- 2Mr. Tan will continue employment until June 30, 2007, for transition purposes.
- 3A deferred bonus of $3.2 million, plus approximately $250,000 in earnings, will have its vesting accelerated.
- 4Acceleration of the deferred bonus is contingent upon Mr. Tan's compliance with non-solicitation and non-competition covenants.
- 5Flextronics will incur an additional unrecognized compensation expense of approximately $1.6 million related to this deferred bonus agreement.
- 6The company recognized $1.6 million in cumulative compensation expense related to the deferred bonus prior to this filing.