8-KLeadership Changes

KLA CORP 8-K Report, Executive Changes (Aug 7, 2015)

Filed August 7, 2015For Securities:KLAC

Summary

KLA Corp (KLAC) filed an 8-K on August 6, 2015, reporting two key events. Firstly, Robert T. Bond, a long-standing director and member of the Audit and Nominating and Governance Committees, has decided not to seek re-election at the upcoming 2015 annual meeting. His departure is amicable and not due to any disagreements with management, concluding 15 years of service. Secondly, the Compensation Committee approved a salary increase for Bren D. Higgins, Executive Vice President and Chief Financial Officer. Effective August 24, 2015, Mr. Higgins' annual base salary will rise from $400,000 to $450,000. This adjustment will also increase his target annual cash bonus under the Fiscal Year 2016 Executive Incentive Plan, as bonus payouts are calculated as a percentage of base salary and are contingent upon company performance metrics for FY16.

Key Highlights

  • 1Robert T. Bond will not stand for re-election to the Board of Directors at the 2015 annual meeting after 15 years of service.
  • 2Mr. Bond's decision not to seek re-election is not a result of any disagreement with management.
  • 3Bren D. Higgins, EVP and CFO, will receive an increase in his annual base salary.
  • 4Mr. Higgins' base salary will increase from $400,000 to $450,000, effective August 24, 2015.
  • 5The CFO's annual cash bonus target will increase as a direct result of the base salary raise.
  • 6Bonus payouts are performance-based, tied to KLA's operating margin and strategic objectives for Fiscal Year 2016.

Frequently Asked Questions

Robert T. Bond has decided not to stand for re-election to the Board of Directors at the Company's 2015 annual meeting. This decision is not a result of any disagreement with management, and the Board has expressed gratitude for his 15 years of service.

Mr. Bond will continue to serve until the annual meeting. His departure marks the end of a long tenure and will necessitate the Board filling his positions on the Audit Committee and Nominating and Governance Committee following the annual meeting.

Bren D. Higgins, the Executive Vice President and Chief Financial Officer, will have his annual base salary increased from $400,000 to $450,000, effective August 24, 2015.

The increase in base salary will also increase Mr. Higgins' target annual cash bonus. Bonus payouts under the Fiscal Year 2016 Executive Incentive Plan are calculated as a percentage of base salary and are dependent on the company's performance against specific metrics for FY16.