Business Context and Reporting Period
Company: The Eastern Company (EASTERN CO)
Filing Type: Form 8-K (Current Report)
Date of Report: February 8, 2012
Reporting Period: Single event date (February 8, 2012)
This filing reports the entry into a material definitive agreement regarding executive compensation. The Compensation Committee of the Board of Directors approved the 2012 Executive Incentive Program for the company's Named Executive Officers.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on the approval of an executive compensation plan rather than financial performance results.
Material Changes
Executive Compensation Structure: The company established the 2012 Executive Incentive Plan for Leonard F. Leganza (Chairman, President, and CEO) and John L. Sullivan III (Vice President and CFO). Key terms include:
- Performance Metrics: Incentives are based on Division Earnings (75% weight) and Working Capital (25% weight).
- Payout Potential: Executives can earn up to 100% of their salary based on achieving the specified targets.
Guidance, Outlook, and Risks
The filing does not contain financial guidance, forward-looking outlook statements, or specific risk factors beyond the standard disclosure of the compensation agreement. The document serves to disclose the terms of the incentive plan approved on the report date.
Investor Verification Checklist
- Verify the specific salary bases for Mr. Leganza and Mr. Sullivan to calculate maximum potential payout values.
- Review the definition of "Division Earnings" and "Working Capital" within the full Executive Incentive Plan to understand the performance hurdles.
- Check subsequent filings (e.g., 10-K or 10-Q) to determine if the 2012 targets were met and the actual compensation paid.