8-KMaterial Agreements

MONOLITHIC POWER SYSTEMS INC 8-K Report, Material Agreement (Sep 16, 2005)

Filed September 16, 2005For Securities:MPWR

Summary

Monolithic Power Systems, Inc. (MPWR) filed an 8-K on September 16, 2005, reporting key executive compensation adjustments made on September 12, 2005. The Compensation Committee of the Board of Directors amended the base salaries and maximum performance cash bonuses for its Section 16 officers for fiscal years 2005 and 2006. These changes reflect adjustments to executive compensation structures, with some base salaries effective retroactively from July 1, 2005. The filing also disclosed the ratification of cash performance bonus disbursements made earlier in 2005 to these officers. Investors should note that these are standard disclosures related to executive compensation and do not appear to indicate any significant new business developments or material changes in the company's operational or financial performance as of the reporting date. The information provides transparency into how the company is compensating its top leadership and the structure of incentive-based pay for the upcoming fiscal years.

Key Highlights

  • 1Amendment to base salaries and maximum performance cash bonuses for Section 16 officers for fiscal years 2005 and 2006.
  • 2Some base salary adjustments for fiscal year 2005 were effective retroactively from July 1, 2005.
  • 3Richard Neely, Jr. had a later start date of September 6, 2005, impacting his salary pro-rata.
  • 4Maximum performance bonuses are contingent upon the achievement of specific company and/or individual goals.
  • 5Ratification of cash performance bonus payments made to Section 16 officers in January 2005 and July 2005.
  • 6Key officers receiving bonus payments include Michael R. Hsing, Tim Christofferson, Deming Xiao, Jim Moyer, and Saria Tseng.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose amendments made to the base salaries and maximum performance cash bonuses for Monolithic Power Systems, Inc.'s Section 16 officers for the fiscal years 2005 and 2006, as well as to ratify previous bonus payments.

For fiscal year 2005, the amended base salaries were effective as of July 1, 2005, for most officers. Richard Neely, Jr.'s salary became effective on his start date of September 6, 2005. The 2006 salaries and bonuses would be effective for that fiscal year.

The cash performance bonus amounts are based on the achievement of certain company and/or individual goals, as determined by the Compensation Committee.

This filing specifically relates to executive compensation adjustments and does not report on new financial performance, operational changes, or strategic shifts for the company. It is a routine disclosure regarding executive pay structures.