Business Context and Reporting Period
This Form 8-K Current Report was filed by Energy Recovery, Inc. on June 22, 2016, regarding an event that occurred on June 20, 2016. The filing reports the appointment of a new executive officer.
Key Financial Metrics
The filing does not provide financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation details:
- Base Salary: $260,000 annually.
- Equity Grant: Options to purchase $250,000 of Company shares.
- Annual Bonus: Eligible for up to 45% of annual salary based on performance goals and Company financial targets.
- Guaranteed Bonus: A prorated bonus from his previous employer, payable in 2017.
Material Changes
The Board of Directors approved the appointment of Mr. William Yeung as General Counsel, effective June 20, 2016. Mr. Yeung brings over 16 years of legal experience, having previously served as General Counsel for SharesPost, Inc., and held roles at Thomas Weisel Partners Group, Socialutions, Inc., Cleary Gottlieb Steen & Hamilton, and Morrison & Foerster.
Outlook, Risks, and Contingencies
Mr. Yeung is designated as a participant in the Company's Change of Control Plan and is eligible for severance benefits if terminated without cause, except in connection with a Change in Control. The filing explicitly states there are no reportable related party transactions with Mr. Yeung under Item 5.02 of Form 8-K or Item 404(a) of Regulation S-K.
Investor Verification Checklist
- Verify the terms of the Change of Control Plan referenced in the filing.
- Confirm the specific performance goals required to trigger the 45% annual bonus.
- Review the Offer Letter (Exhibit 99.1) for additional compensation details not summarized in the text.