Summary
Lam Research Corporation (LRCX) filed an 8-K/A amendment on December 10, 2018, to correct a specific detail within a previously filed report regarding executive compensation. The amendment clarifies the formula used to determine the number of shares covered by stock options granted to certain officers. This correction ensures the accurate calculation of equity awards, which is crucial for understanding the total compensation package and potential dilution for shareholders.
Key Highlights
- 1Amendment corrects a formula for calculating stock option grants for certain officers.
- 2The correction relates to the number of shares determined by the nominal value of an equity award.
- 3Options will expire seven years from the grant date.
- 4The calculation involves dividing 50% of the nominal value by the average closing stock price over 30 trading days prior to the grant date.
- 5The result is then multiplied by approximately 4.2 and rounded down to the nearest whole share.
- 6The corrected formula yields 71,430 shares for the specific award mentioned.
Frequently Asked Questions
The primary purpose of this 8-K/A filing is to amend a previous report and correct an error in the formula used to calculate the number of shares for stock options granted to certain officers. It ensures the accuracy of executive compensation disclosures.
While this is a technical correction, it ensures transparency and accuracy in executive compensation. Shareholders can be confident that the disclosed equity awards are calculated according to the corrected formula, which is important for assessing potential dilution and the overall compensation structure.
The corrected formula specifies that the number of shares for a stock option is determined by dividing 50% of the equity award's nominal value by the average stock price over the preceding 30 trading days, multiplying by approximately 4.2, and rounding down to the nearest whole share. These options will expire seven years from their grant date.