Summary
KLA Corporation (KLAC) filed an 8-K on September 25, 2007, to report an amendment to its Executive Severance Plan. The amendment, approved by the independent members of the Board of Directors on September 20, 2007, rectifies an error in the calculation of the "Prorated Annual Incentive." Previously, the calculation incorrectly used the calendar year instead of the fiscal year for proration. This change ensures that any prorated annual incentive payments due to eligible executives upon specific termination events will be accurately calculated based on the elapsed days within the company's fiscal year. This is primarily a technical correction to align the plan's wording with the intended operational basis for bonus calculations, offering clarity and accuracy for executive compensation in the event of qualifying terminations.
Key Highlights
- 1Amendment to KLA-Tencor Corporation's Executive Severance Plan approved by the Board.
- 2Correction addresses the calculation of "Prorated Annual Incentive" for plan participants.
- 3The error involved using the calendar year instead of the fiscal year for proration calculations.
- 4The amendment replaces "calendar year" with "fiscal year" in the definition of "Prorated Annual Incentive."
- 5This change ensures accurate bonus calculations based on the elapsed days of the company's fiscal year.
- 6The correction is effective for specified termination events.
- 7The filing was made on September 25, 2007, with the earliest event reported on September 20, 2007.