Summary
PACCAR Inc (PCAR) filed an 8-K on May 1, 2006, reporting key stockholder approvals and subsequent executive compensation actions taken on April 25, 2006. The primary focus of this filing is the approval and implementation of amendments to the company's Long Term Incentive Plan (LTIP) and the Senior Executive Yearly Incentive Compensation Plan. These approvals allow for the granting of performance-based restricted stock awards to named executive officers and a matching program for executive stock purchases. Specifically, the stockholder approval of the amended LTIP enabled the Compensation Committee to award restricted stock. Furthermore, a special share match program was authorized, allowing the Chairman and CEO to receive performance-based restricted stock matching their personal purchases of PCAR common stock, up to certain limits. These actions are part of PACCAR's executive compensation strategy designed to align management's interests with those of shareholders.
Key Highlights
- 1Stockholder approval obtained for the amendment and restatement of the PACCAR Inc Long Term Incentive Plan (LTIP) on April 25, 2006.
- 2Stockholder approval obtained for the amendment and restatement of the Senior Executive Yearly Incentive Compensation Plan on April 25, 2006.
- 3Following stockholder approval, the Compensation Committee awarded performance-based restricted stock to named executive officers under the LTIP.
- 4A share match program was authorized for the Chairman and CEO, matching personal stock purchases with performance-based restricted stock.
- 5The share match program has a maximum limit of 250,000 shares and an annual limit of 100,000 shares per calendar year.
- 6The filing includes forms of the Restricted Stock Award Agreement and the Share Match Restricted Stock Award Agreement as exhibits.