Summary
KLA Corporation (KLAC) filed an 8-K on August 4, 2011, reporting two key events. First, the company's independent Board of Directors approved an increase in CEO Richard P. Wallace's annual base salary from $800,000 to $900,000, effective August 29, 2011. This salary adjustment also impacts his potential cash bonus target under the Performance Bonus Plan, as the bonus is calculated as a percentage of base salary and tied to company operating margin and strategic objectives. Second, the Board declared a quarterly cash dividend of $0.35 per share, payable on September 1, 2011, to shareholders of record on August 15, 2011. This dividend declaration indicates a continued commitment to returning capital to shareholders. Investors should note that the salary increase for the CEO is subject to performance metrics, aligning executive compensation with company performance.
Key Highlights
- 1CEO Richard P. Wallace's annual base salary increased from $800,000 to $900,000, effective August 29, 2011.
- 2The CEO's salary increase will also raise his annual cash bonus target under the Performance Bonus Plan.
- 3The Performance Bonus Plan is tied to the company's operating margin and a balanced scorecard of strategic objectives.
- 4KLA-Tencor's Board of Directors declared a cash dividend of $0.35 per share.
- 5The dividend is payable on September 1, 2011.
- 6Shareholders of record as of August 15, 2011, will receive the dividend.
- 7The company filed a press release detailing these announcements as an exhibit.