Summary
Corning Incorporated (GLW) filed an 8-K report on February 6, 2006, detailing actions taken by its Compensation Committee on February 1, 2006, regarding executive compensation for the 2006 fiscal year. The key focus of this filing is the adoption of performance metrics for both the company's Variable Compensation Plan and its Incentive Stock Plan, which impact a significant portion of the employee base and executive leadership. For the Variable Compensation Plan, covering over 3,000 employees and nearly all 26,000 employees through goalsharing plans, the primary corporate performance metric for 2006 is adjusted net profit after taxes. For the top five named executive officers, variable compensation is solely based on this corporate metric, with awards ranging from 0% to 10% of base salary. The Incentive Stock Plan, which awards performance shares (restricted stock) to approximately 186 employees including executives, will have its 2006 performance metrics based on adjusted earnings per share and operating cash flow. Shares earned under this plan will be subject to restrictions and potential forfeiture until February 1, 2009.
Key Highlights
- 1Corning's Compensation Committee established performance metrics for 2006 variable compensation and incentive stock awards on February 1, 2006.
- 2The Variable Compensation Plan, covering a broad base of employees, will primarily use adjusted net profit after taxes as the key performance metric for 2006.
- 3Executive officers' variable compensation is exclusively tied to the corporate performance factor of adjusted net profit after taxes.
- 4The Incentive Stock Plan for 2006 performance shares will be measured against adjusted earnings per share and operating cash flow.
- 5Approximately 186 employees, including executive officers, participate in the Incentive Stock Plan.
- 6Performance shares awarded under the Incentive Stock Plan for 2006 results will be restricted and subject to forfeiture until February 1, 2009.
- 7Specific award amounts for named executive officers under the Incentive Stock Plan at target level were disclosed.