Business Context and Reporting Period
Company: The Eastern Company (Eastern Co)
Filing Type: Form 8-K (Current Report)
Date of Report: February 9, 2010
Event Date: February 9, 2010
This filing reports the approval of the 2010 Executive Incentive Program by the Compensation Committee of the Board of Directors.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses on corporate governance and executive compensation rather than financial performance results.
Material Changes
Item 1.01 - Entry into a Material Definitive Agreement:
- The Company approved the 2010 Executive Incentive Program under the existing Executive Incentive Plan.
- The program applies to Named Executive Officers: Leonard F. Leganza (Chairman, President, CEO) and John L. Sullivan III (Vice President, CFO).
- Performance Metrics: Incentives are based on Division Earnings (75% weight) and Working Capital (25% weight).
- Payout Structure: Executives can earn incentives up to 100% of their salary upon achieving targets.
Guidance, Outlook, and Risks
The filing text does not provide financial guidance, outlook, management commentary on market conditions, or specific risk factors beyond the standard disclosure of the incentive plan structure.
Investor Verification Checklist
- Verify the specific Division Earnings and Working Capital targets set for the 2010 fiscal year.
- Review the base salaries of Mr. Leganza and Mr. Sullivan to calculate maximum potential incentive payouts.
- Confirm if the Executive Incentive Plan requires shareholder approval or if it falls under existing board authority.
- Check subsequent filings for actual performance results against the 75/25 metric split.