8-KLeadership ChangesOther EventsExhibits & Filings

FLEX LTD. 8-K Report, Executive Changes (Jul 14, 2009)

Filed July 14, 2009For Securities:FLEX

Summary

Flex Ltd. (FLEX) filed an 8-K on July 14, 2009, reporting on an extraordinary general meeting of shareholders held on July 13, 2009. The primary outcome of this meeting was the shareholder approval to amend several of the Company's existing equity incentive plans. These amendments are specifically designed to facilitate a one-time stock option exchange program. The stock option exchange program is intended for eligible employees of Flex Ltd. and its subsidiaries, notably excluding members of the board of directors and executive officers. This initiative aims to provide flexibility in managing outstanding stock options, potentially to align employee incentives with company performance or to address specific market conditions during that period. The approved amendments cover a range of previously established plans, including those from acquired entities, underscoring a consolidated approach to equity compensation.

Key Highlights

  • 1Shareholders approved amendments to multiple equity incentive plans on July 13, 2009.
  • 2The amendments enable a one-time stock option exchange program for eligible employees.
  • 3The program excludes directors and executive officers.
  • 4Several legacy and existing Flex Ltd. equity plans were amended, including those from acquired companies (Solectron, Chatham Technologies, Dii Group).
  • 5The amended plans include the 2001 Equity Incentive Plan, 2002 Interim Incentive Plan, 2004 Award Plan for New Employees, 1993 Share Option Plan, and others.
  • 6This action is considered a corporate event related to compensation and governance.
  • 7The filing incorporates these amendments by reference as exhibits.

Frequently Asked Questions

The main purpose was for shareholders to approve amendments to several of Flex Ltd.'s equity incentive plans. These amendments were necessary to allow for a one-time stock option exchange program for eligible employees.

The program is for eligible employees of Flex Ltd. and its subsidiaries. However, members of the Company's board of directors and its executive officers are explicitly excluded from participating.

The amendments covered several plans, including the Flextronics International Ltd. 2001 Equity Incentive Plan, 2002 Interim Incentive Plan, 2004 Award Plan for New Employees, 1993 Share Option Plan, and also plans from acquired companies: Solectron Corporation 2002 Stock Plan, Chatham Technologies, Inc. 1997 Stock Option Plan, and The Dii Group, Inc. 1994 Stock Incentive Plan.

Companies often implement stock option exchange programs to manage outstanding stock options. This can be done to offer employees new options with potentially better terms (e.g., lower strike price if the stock price has fallen), to reduce dilution, to re-align incentives with current market conditions, or to retain key employees during challenging economic periods.