Summary
This 8-K filing from FLEX LTD. (FLEX) on June 10, 2019, details the company's Annual Incentive Bonus Plan for Fiscal Year 2020, approved by the Board on June 4, 2019. The plan outlines the structure and performance metrics for executive bonuses, aiming to align executive compensation with key company financial and operational objectives. The plan allows for annual cash bonuses based on pre-established goals for revenue growth, earnings per share (EPS), operating profit, and free cash flow at the company level. Specific business unit targets will also be considered for certain executives. The structure includes defined target award percentages of base salary for different executive roles, with maximum payout opportunities significantly exceeding targets, contingent on strong performance.
Key Highlights
- 1FLEX LTD. Board approved the Annual Incentive Bonus Plan for Fiscal Year 2020 on June 4, 2019.
- 2Executive bonuses are tied to achievement of pre-established performance goals, including company-level revenue growth, EPS, operating profit, and free cash flow.
- 3Business unit-specific targets will also be a factor for certain executives, such as revenue growth, new business wins, and operating profit.
- 4Target bonus opportunities are set as a percentage of base salary: 150% for CEO, 110% for CFO, and 90%-110% for other named executive officers.
- 5Actual bonus payouts can range from 50% of target (threshold) to a maximum of 250% of target, depending on performance against metrics.
- 6No payout is awarded for a specific performance measure if the threshold level is not achieved.
- 7The plan utilizes adjusted, non-GAAP measures for determining achievement of award opportunities.