Summary
KLA Corporation (KLAC) filed an 8-K on October 3, 2006, detailing the establishment of performance goals for its 2007 fiscal year under two executive bonus plans: the Performance Bonus Plan and the Outstanding Corporate Performance Bonus Plan. These plans are designed to incentivize executive performance based on key financial metrics including operating income, pre-tax profit, and operating margin. The Compensation Committee has set specific threshold, target, and maximum bonus potentials for several executive officers, ensuring that bonuses are contingent upon achieving defined performance levels. No bonuses will be paid if the threshold performance is not met, aligning executive compensation with company success.
Key Highlights
- 1KLA-Tencor Corporation established performance goals for the 2007 fiscal year under its Performance Bonus Plan and Outstanding Corporate Performance Bonus Plan.
- 2Performance goals are tied to key financial metrics such as operating income, pre-tax profit, and operating margin for fiscal year 2007.
- 3Executive bonus potentials are set at threshold, target, and maximum levels for each participating executive officer.
- 4Specific executive officers, including Kenneth Levy, Richard P. Wallace, John H. Kispert, Lance Glasser, and Jeffrey L. Hall, are participants in these plans.
- 5Bonus payouts are contingent upon the company achieving at least the threshold level of performance; no bonus is awarded if the threshold is not met.
- 6Actual bonus amounts will be determined by the Compensation Committee after the close of fiscal year 2007 and are expected to be paid within 90 days.
- 7The plans are administered in conformity with Section 162(m) of the Internal Revenue Code.