What is the primary purpose of the 2011 Non-Employee Directors' Equity Incentive Plan?

The primary purpose of the 2011 Plan is to strengthen the commitment of Garmin's non-employee directors to the company's success, align their interests with those of Garmin's shareholders, and assist in attracting and retaining experienced individuals to serve as non-employee directors by providing them with equity-based compensation.

How many shares are available for awards under the new 2011 Plan?

No new shares are being authorized. The 2011 Plan will use shares that were previously available under the 2000 Plan. As of June 3, 2011, there were 122,592 shares available for issuance under the 2000 Plan, and all of these will be available for issuance under the 2011 Plan.

What types of equity awards can be granted under the 2011 Plan?

The 2011 Plan allows for the grant of several types of equity awards, including nonqualified stock options, restricted shares, restricted stock units (RSUs), bonus shares, stock appreciation rights (SARs), performance units, and performance shares.

What were the other key shareholder approvals at the Annual General Meeting?

Besides the 2011 Plan, shareholders approved the 2010 Annual Report and financial statements, discharged directors and officers from liability for fiscal year 2010, elected two directors, ratified the appointment of Ernst & Young LLP as auditors, and approved a $2.00 per share cash dividend payable in four installments. They also approved an advisory resolution on executive compensation and indicated a preference for an annual advisory vote on the matter.

GRMN 8-K: Material Agreements & Shareholder Matters

Summary

Garmin Ltd. (GRMN) filed an 8-K on June 6, 2011, detailing the approval of its 2011 Non-Employee Directors' Equity Incentive Plan (the "2011 Plan") at the Annual General Meeting on June 3, 2011. This plan aims to align the interests of non-employee directors with shareholders by providing them with various equity awards, including stock options, restricted shares, and restricted stock units. No new shares will be authorized; instead, the plan will utilize the remaining shares available under the previous 2000 Plan, with 122,592 shares available as of June 3, 2011. The plan allows for flexibility in award structures and performance metrics, with a minimum two-year vesting schedule for Restricted Stock Units and Restricted Shares. In addition to the equity plan, the filing confirms shareholder approval of the company's 2010 Annual Report, the election of two directors (Donald H. Eller and Clifton A. Pemble), the ratification of Ernst & Young LLP as independent auditors, and an advisory vote on executive compensation frequency, with shareholders favoring an annual vote. Notably, the shareholders also approved a cash dividend of $2.00 per share, payable in four installments throughout the year, reflecting a commitment to returning capital to shareholders.

Key Highlights

1Garmin Ltd. shareholders approved the 2011 Non-Employee Directors' Equity Incentive Plan, designed to align director and shareholder interests.
2The plan allows for various equity awards, including stock options, restricted shares, restricted stock units, and performance-based awards.
3No new shares will be issued under the 2011 Plan; it will utilize the 122,592 shares remaining from the 2000 Plan.
4The 2011 Plan aims to attract and retain experienced non-employee directors.
5Shareholders approved the 2010 Annual Report and financial statements.
6A cash dividend of $2.00 per share, payable in four installments, was approved.
7The company will hold an annual advisory vote on executive compensation, as supported by shareholder vote.

GARMIN LTD 8-K Report, Material Agreement (Jun 6, 2011)

Summary

Key Highlights

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