Summary
LAM RESEARCH CORP (LRCX) filed an 8-K on March 13, 2009, detailing the adoption of performance goals for its 2009 Annual Incentive Program (AIP). This program is designed to incentivize key executive officers by linking a portion of their compensation to specific performance metrics for the upcoming calendar year. The primary performance drivers for the 2009 AIP are ongoing operational cash flow and business unit performance. The weighting of these factors varies slightly among executives, with the CEO and COO having a balanced 50/50 split, while other officers have additional organization-specific metrics. Payouts are determined based on the achievement of these targets, with the potential for awards to be delivered in cash, stock, or a combination thereof, at the Compensation Committee's discretion. Maximum payout percentages of base salary are set for each named executive officer, indicating the company's focus on aligning executive rewards with company and divisional success.
Key Highlights
- 1LAM RESEARCH CORP (LRCX) established performance goals for its 2009 Annual Incentive Program (AIP) for key executive officers.
- 2The 2009 AIP performance metrics include ongoing operational cash flow and specific business unit performance.
- 3Compensation payouts under the 2009 AIP are tied to the achievement of these specified performance factors.
- 4Awards can be paid in cash, Company stock, or a combination, at the discretion of the Compensation Committee.
- 5Maximum payout potential under the 2009 AIP is set as a percentage of each executive's 2009 base salary.
- 6The filing specifically names Martin B. Anstice, Richard A. Gottscho, Abdi Hariri, and Ernest E. Maddock as participants, with Stephen G. Newberry also included.
- 7Performance factors are weighted differently for executives, with some having additional organization-specific metrics.