Summary
IDEXX LABORATORIES INC /DE (IDXX) filed an 8-K on March 1, 2010, to report a change in its board of directors and related compensation adjustments for non-employee directors. Joseph V. Vumbacco was elected as a new director, filling a vacancy and impacting the board's class structure. This appointment is subject to stockholder approval at the upcoming 2010 annual meeting. Key compensation changes include an increase in annual cash fees for non-employee directors to $50,000, effective April 1, 2010, representing a $5,000 rise. Conversely, the value of annual deferred stock unit (DSU) grants decreased from approximately $45,000 to $27,500, while the Black-Scholes value of annual stock option grants significantly increased from $45,000 to $82,500. These changes reflect a strategic shift in how the company compensates its directors, with a greater emphasis on stock options.
Key Highlights
- 1Joseph V. Vumbacco appointed as a new director to the Board of Directors on February 24, 2010.
- 2Director Vumbacco's election will fill a vacancy and is subject to stockholder approval at the 2010 Annual Meeting.
- 3Board size and class composition adjusted to accommodate the new director.
- 4Annual cash compensation for non-employee directors increased by $5,000 to $50,000, effective April 1, 2010.
- 5Value of annual Deferred Stock Unit (DSU) grants to directors decreased from approximately $45,000 to $27,500.
- 6Black-Scholes value of annual stock option grants to directors increased significantly from $45,000 to $82,500.