Summary
This 8-K filing by Flextronics International Ltd. (FLEX) on June 5, 2008, primarily discloses changes in executive compensation and the establishment of a new incentive plan. The Board of Directors approved Mr. Michael McNamara's annual base salary of $1,250,000 for fiscal year 2009, along with a special performance bonus of $1,200,000 for fiscal year 2008. These adjustments reflect the company's focus on retaining and incentivizing key leadership. Furthermore, the company introduced a three-year cash incentive bonus plan designed to reward executive officers based on achieving specific compounded annual EPS growth rates by fiscal year 2011. The plan outlines potential maximum bonuses for the CEO, CFO, and other senior executives, contingent on continued employment and meeting performance thresholds. The use of adjusted, non-GAAP diluted EPS for performance measurement is a key detail for investors evaluating these incentives.
Key Highlights
- 1Flextronics CEO Michael McNamara's annual base salary for FY2009 set at $1,250,000.
- 2CEO Michael McNamara awarded a special performance bonus of $1,200,000 for FY2008.
- 3Company Board approved a new three-year cash incentive bonus plan for executive officers.
- 4Incentive plan tied to achieving compounded annual EPS growth rates over three years (ending FY2011).
- 5Maximum potential bonuses range from $4,000,000 for the CEO to $500,000/$625,000 for other executives.
- 6Bonuses are contingent on continued employment through the payout period and meeting performance thresholds.
- 7Performance targets for the bonus plan are based on adjusted, non-GAAP diluted earnings per share.