Business Context and Reporting Period
Company: Cohu, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: December 29, 2009
Subject: Executive Officer Base Salary Increases and Compensation of Non-Management Directors.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. The document focuses exclusively on executive compensation adjustments.
Material Changes
The Compensation Committee restored the base salaries of five named executive officers to pre-2008 levels, reversing reductions made in response to the global economic downturn. The changes are effective with the first full pay period in fiscal 2010.
- James A. Donahue (CEO): Salary restored to $505,003 (previously reduced by 20%).
- Jeffrey D. Jones (CFO): Salary restored to $225,014 (previously reduced by 10%).
- James G. McFarlane (SVP, Delta Design): Salary restored to $218,504 (previously reduced by 10%).
- James P. Walsh (VP, Manufacturing): Salary restored to $215,010 (previously reduced by 10%).
- Roger J. Hopkins (VP, Sales and Service): Salary restored to $180,024 (previously reduced by 10%).
Additionally, the Committee approved a Deferred Stock Agreement allowing non-management directors to defer cash fees in exchange for Deferred Stock awards under the 2005 Equity Incentive Plan.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or discussion of risks and contingencies. The restoration of salaries implies management's view that the economic conditions necessitating the 2008 cuts have improved sufficiently to warrant the reversal.
Investor Verification Checklist
- Verify the exact effective date of the salary increases within the first full pay period of fiscal 2010.
- Review the 2005 Equity Incentive Plan terms regarding the Deferred Stock Agreement for directors.
- Confirm the total annual compensation impact of these salary restorations on the company's operating expenses.
- Check subsequent filings for any performance metrics tied to these executive roles.