8-KLeadership Changes

TE Connectivity plc 8-K Report, Executive Changes (Nov 16, 2012)

Filed November 16, 2012For Securities:TEL

Summary

TE Connectivity Ltd. (TEL) filed an 8-K on November 16, 2012, to report the grant of performance stock units (PSUs) to its named executive officers on November 12, 2012. These PSUs are part of the company's long-term equity incentive program and are administered under the TE Connectivity Ltd. 2007 Stock and Incentive Plan. This filing marks the initial award of PSUs to key executives, including the CEO, CFO, and other principal officers, underscoring a commitment to aligning executive compensation with company performance over an extended period. The performance metrics for these PSUs are tied to the company's earnings per share (EPS) growth relative to the Standard & Poor's 500 Non-Financial Companies Index over a three-year performance cycle. The structure allows for earning up to 200% of a target amount based on relative EPS performance, with a minimum threshold required for any PSUs to vest. This compensation structure aims to incentivize and reward executives for achieving specific growth targets and enhancing shareholder value.

Key Highlights

  • 1TE Connectivity granted Performance Stock Units (PSUs) to named executive officers on November 12, 2012.
  • 2The PSU grants are part of the company's long-term equity incentive program under the 2007 Stock and Incentive Plan.
  • 3This marks the first PSU award to principal executive, financial, and other named executive officers.
  • 4PSU awards are performance-based, linked to the company's Earnings Per Share (EPS) growth.
  • 5Performance is measured against the Standard & Poor's 500 Non-Financial Companies Index over a three-year cycle.
  • 6Executives can earn between 0% and 200% of target PSUs annually, with vesting at the end of the three-year cycle.
  • 7Dividend equivalent stock units will be awarded commensurate with earned and vested PSUs.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose the grant of Performance Stock Units (PSUs) by TE Connectivity Ltd. to its named executive officers on November 12, 2012, as part of its long-term equity incentive program.

The PSUs will be earned based on TE Connectivity's Earnings Per Share (EPS) growth relative to the Standard & Poor's 500 Non-Financial Companies Index over a three-year performance cycle. A minimum EPS growth threshold must be met each year for any PSUs to be awarded, with the potential to earn up to 200% of the annual target amount based on performance.

The PSUs that are earned and reserved based on the performance criteria will vest at the end of the three-year performance cycle.

Yes, named executive officers will receive dividend equivalent stock units that are commensurate with the portion of the PSUs that are reserved and vested.