Who is Michael D. Capellas and why was he appointed to the board?

Michael D. Capellas was appointed as an independent director to Flextronics International Ltd.'s Board of Directors. While the filing does not detail his specific background, board appointments of independent directors typically aim to bring diverse experience, enhance corporate governance, and provide objective oversight.

What is the compensation for the new director?

Mr. Capellas is entitled to annual cash compensation of $95,000, payable quarterly. He will also receive a pro-rated share of the annual restricted stock unit (RSU) award upon appointment and an annual RSU award following each annual general meeting, with an aggregate fair market value of $150,000 per year. This compensation structure aims to align his interests with those of the company's shareholders.

What are the protections offered to the new director?

The company's Articles of Association and indemnification agreements provide that directors will be indemnified against costs, charges, losses, expenses, and liabilities incurred in the execution of their duties, to the maximum extent permitted by law. Additionally, Flextronics has obtained a directors' and officers' liability insurance policy to cover defense costs, settlements, and judgments.

FLEX 8-K: Leadership Changes

Summary

This Form 8-K filing by Flextronics International Ltd. (FLEX) on March 24, 2014, primarily announces the appointment of Mr. Michael D. Capellas to the Company's Board of Directors, effective March 20, 2014. Mr. Capellas will serve as an independent director and has been appointed to the Compensation Committee. This appointment brings new expertise to the board and indicates a step towards strengthening corporate governance and oversight. Investors should note the compensation package for Mr. Capellas, which includes annual cash compensation and restricted stock units, aligning his interests with shareholders. The filing also reaffirms the company's commitment to director indemnification and liability insurance, providing standard protections for its board members.

Key Highlights

1Flextronics International Ltd. appointed Michael D. Capellas to its Board of Directors on March 20, 2014.
2Mr. Capellas will serve as an independent director.
3He has been appointed as a member of the Board's Compensation Committee.
4Mr. Capellas' compensation includes $95,000 in annual cash compensation.
5He will also receive pro-rated and annual restricted stock unit awards with an aggregate fair market value of $150,000.
6The company provides standard indemnification and directors' and officers' liability insurance for its directors.

FLEX LTD. 8-K Report, Executive Changes (Mar 24, 2014)

Summary

Key Highlights

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