Summary
This filing is an amendment (Amendment No. 2) to a previous Current Report on Form 8-K for Parker-Hannifin Corporation. The primary purpose of this amendment is to adjust the effective retirement date of John D. Myslenski, a named executive officer and Executive Vice President – Sales, Marketing and Operations Support. His retirement date has been moved from March 31, 2008, to May 2, 2008. In addition to the retirement date change, the filing details the compensation arrangements approved by the Human Resources and Compensation Committee on August 15, 2007. These include grants of stock options with tandem stock appreciation rights (SARs) to executive officers, as well as various bonus awards under the Corporation’s Performance Bonus Plan. These bonus awards encompass annual cash incentives based on fiscal year 2008 free cash flow margin and return on net assets (RONA), and long-term incentive (LTI) awards tied to revenue growth, earnings per share growth, and return on invested capital over a three-year period. These compensation details provide insight into how the company incentivizes its senior leadership.
Key Highlights
- 1Amendment No. 2 to Form 8-K filed to update the retirement date of Executive Vice President John D. Myslenski.
- 2John D. Myslenski's retirement date has been postponed from March 31, 2008, to May 2, 2008.
- 3The Human Resources and Compensation Committee approved stock option grants with tandem Stock Appreciation Rights (SARs) to executive officers on August 15, 2007.
- 4Named executive officers received target bonus awards for fiscal year 2008 based on free cash flow margin.
- 5Long-Term Incentive (LTI) awards for the 2008-2010 performance period were granted to executive officers.
- 6LTI awards are based on corporate performance metrics: revenue growth, EPS growth, and return on invested capital.
- 7Return on Net Asset (RONA) bonus awards for fiscal year 2008 were also approved for certain named executive officers.