Why is the CFO changing, and what will the outgoing CFO do?

Christopher Collier is resigning as CFO for personal reasons, effective September 1, 2020. He will transition to a Senior Advisor role to the CEO, Revathi Advaithi, until March 31, 2021. This role is intended to ensure a smooth transition of CFO duties and leverage his expertise on key business initiatives.

What is the compensation package for the new CFO, Paul R. Lundstrom?

Mr. Lundstrom's compensation includes an annual base salary of $700,000. For fiscal year 2021, he is set to receive an equity award valued at $2,000,000 (50% RSUs, 50% PSUs). Additionally, he receives make-whole grants totaling $3,000,000 ($2.5M in RSUs and $500K cash bonus) to compensate for incentives forfeited at his prior employer, relocation assistance, and is eligible for the Deferred Compensation Plan and Executive Severance Plan.

Are there any conditions attached to the new CFO's make-whole payments?

Yes, the $500,000 sign-on cash bonus is repayable by Mr. Lundstrom if he voluntarily terminates his employment (other than for Good Reason) or if the Company terminates his employment for Cause within 24 months of his start date. The make-whole RSU grant vests over three years, subject to continued employment.

What are the terms of the outgoing CFO's transition agreement?

Christopher Collier will continue to receive his base salary during the Transition Period (September 1, 2020 - March 31, 2021) as a Senior Advisor. His outstanding equity awards will continue to vest during this period, but he will not be eligible for an annual bonus for fiscal year 2021. He will be subject to perpetual confidentiality and non-disparagement covenants and provides a general release and cooperation provision. He is not eligible for separation payments under the standard Executive Severance Plan.

FLEX 8-K: Leadership Changes & Regulation FD

Summary

Flex Ltd. (FLEX) has announced a significant change in its financial leadership with the appointment of Paul R. Lundstrom as the new Chief Financial Officer (CFO), effective September 1, 2020. This appointment follows the resignation of Christopher Collier, who served as CFO for seven years and will transition to a senior advisor role to the CEO until March 31, 2021. Mr. Lundstrom brings extensive financial experience from his previous roles at Aerojet Rocketdyne Holdings, Inc. and United Technologies Corporation, including significant experience in investor relations and financial leadership across various divisions and international markets. The company has detailed Mr. Lundstrom's compensation package, which includes a base salary of $700,000, substantial equity awards (RSUs and PSUs) valued at $2,000,000 for fiscal year 2021, and additional make-whole grants and a sign-on bonus totaling $3,000,000 to compensate for forfeited incentives from his prior employer. This package also includes a relocation reimbursement and eligibility for the company's Deferred Compensation Plan and Executive Severance Plan. The transition of Mr. Collier to a senior advisor role aims to ensure a smooth handover and leverage his expertise on key initiatives.

Key Highlights

1Appointment of Paul R. Lundstrom as Chief Financial Officer (CFO) effective September 1, 2020.
2Resignation of current CFO, Christopher Collier, effective September 1, 2020, for personal reasons.
3Christopher Collier to serve as Senior Advisor to the CEO until March 31, 2021, to ensure a smooth transition and assist with key initiatives.
4Paul R. Lundstrom's compensation includes a $700,000 base salary and a $2,000,000 target value equity award for FY21.
5Significant make-whole provisions for Mr. Lundstrom, including $2,500,000 in RSUs and a $500,000 cash bonus, to offset forfeited compensation from his previous employer.
6Mr. Lundstrom eligible for Flex's Executive Severance Plan and relocation assistance.
7Filing includes a press release detailing the CFO transition and is incorporated by reference.

FLEX LTD. 8-K Report, Executive Changes (Aug 7, 2020)

Summary

Key Highlights

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