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.
Frequently Asked Questions
The primary purpose of this 8-K filing is to disclose the establishment of performance goals and bonus potentials for KLA Corporation's executive officers for the 2007 fiscal year under two incentive bonus plans.
Executive compensation through these bonus plans is directly tied to the company's financial performance. Bonuses will only be awarded if KLA-Tencor achieves specific performance goals related to operating income, pre-tax profit, and operating margin for fiscal year 2007. The payout amounts vary based on whether threshold, target, or maximum performance levels are met.
Actual bonus payouts, if any, will be determined by the Compensation Committee after the close of the 2007 fiscal year. The company expects these payments to be made within ninety days following the end of the fiscal year.
Yes, the plans specify maximum dollar award amounts for each executive officer. Furthermore, no executive officer will receive any bonus award under these plans if the threshold level of company performance is not attained.