Summary
This 8-K filing by Flex Ltd. (FLEX) on September 3, 2010, details significant changes to the compensation and benefits for Francois Barbier, President of Global Operations. The primary focus is Mr. Barbier's relocation to the company's Milpitas facility and the associated financial adjustments approved by the Compensation Committee. Key changes include a $50,000 increase in his annual base salary, retroactive to July 1, 2010, bringing his new salary to $600,000. Additionally, the company will reimburse various relocation expenses, such as a monthly housing allowance, a furnishing allowance, and education expenses for a dependent, with all reimbursements grossed up for taxes. These adjustments underscore the company's commitment to retaining key executive talent, particularly during international relocations, and highlight the financial implications associated with such moves.
Key Highlights
- 1Francois Barbier, President of Global Operations, has relocated to the company's Milpitas facility as of August 30, 2010.
- 2Mr. Barbier's annual base salary has been increased by $50,000, from $550,000 to $600,000.
- 3The salary increase is retroactive to July 1, 2010.
- 4Flex Ltd. will reimburse Mr. Barbier for specific relocation expenses, including a $6,000 monthly housing allowance.
- 5A one-time furnishing allowance of up to $50,000 and a miscellaneous expenditure allowance of up to $8,000 are also covered.
- 6The company will cover one year of education expenses for one dependent.
- 7All reimbursed relocation expenses will be grossed up for applicable taxes.
- 8Mr. Barbier has agreed to repay a pro-rated portion of relocation expenses if his employment terminates within two years of his relocation.