Summary
Corning Incorporated (GLW) filed an 8-K on February 9, 2010, detailing actions taken by its Compensation Committee on February 3, 2010. The primary focus of this filing is the adoption of corporate performance metrics for the 2010 cash performance units awarded under the Company's 2005 Employee Equity Participation Program. These metrics are crucial for determining the compensation of approximately 190 employees, including executive officers, based on the company's 2010 financial performance. Specifically, the equally weighted performance metrics for 2010 are adjusted earnings per share (EPS) and adjusted operating cash flow. The actual payout opportunity for participants can range from 0% to 150% of their target award, contingent on achieving the set goals. Importantly, any earned, unearned, or forfeited cash performance units related to 2010 performance will remain subject to transfer restrictions and potential forfeiture until February 1, 2013, with the final determination of earned units to be made by the Compensation Committee in February 2011.
Key Highlights
- 1Adoption of corporate performance metrics for 2010 cash performance units under the 2005 Employee Equity Participation Program.
- 2Approximately 190 employees, including executive officers, are eligible to receive these performance units.
- 3The key performance metrics for 2010 are adjusted earnings per share (EPS) and adjusted operating cash flow.
- 4Award opportunities for participants can range from 0% to 150% of the target award, based on actual performance against goals.
- 5Cash performance units earned, unearned, or forfeited based on 2010 performance will be restricted until February 1, 2013.
- 6The Compensation Committee will determine the number of earned units in February 2011 based on 2010 financial results.
- 7Corporate performance metrics for 2010 Variable Compensation were established to be consistent with the previous year.