Summary
Seagate Technology Holdings plc filed an 8-K report on September 27, 2016, detailing the vesting of performance share units (PSUs) granted in 2013 under its 2012 Equity Incentive Plan. These PSUs were subject to a three-year performance period ending July 1, 2016, with vesting contingent on achieving average annual return on invested capital (ROIC) and relative total shareholder return (TSR) against a peer group. The Compensation Committee certified the performance metrics on September 26, 2016. The PSUs will vest at 98% of the target level, based on a three-year average annual ROIC of 54% and a relative TSR at the 18th percentile. This report provides transparency to investors regarding executive compensation outcomes tied to company performance.
Key Highlights
- 1Seagate Technology Holdings plc announced the vesting of Performance Share Units (PSUs) for certain executive officers.
- 2The PSUs were granted on September 9 and September 20, 2013, under the 2012 Equity Incentive Plan.
- 3The performance period for these PSUs concluded on July 1, 2016.
- 4Vesting is based on achieving specific financial performance metrics: average annual Return on Invested Capital (ROIC) and relative Total Shareholder Return (TSR).
- 5The Compensation Committee certified that the PSUs will vest at 98% of the target level.
- 6The achieved three-year average annual ROIC was 54%.
- 7The relative TSR was at the 18th percentile compared to a selected peer group.