Business Context and Reporting Period
This Form 8-K Current Report from Avery Dennison Corporation covers events occurring at the annual meeting of stockholders held on April 24, 2008. The filing details corporate governance actions, including director elections, auditor ratification, and the approval of a new equity incentive plan.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on corporate governance and executive compensation arrangements rather than financial performance results.
Material Changes
- Stock Plan Approval: Stockholders approved the amended and restated Stock Option and Incentive Plan ("Stock Plan").
- Plan Rescission: Effective April 24, 2008, the Company rescinded authority to issue new equity awards under the former Paxar Corporation stock option plan.
- Executive Compensation: The Compensation and Executive Personnel Committee awarded Performance Units to named executive officers under the new Stock Plan.
Guidance, Outlook, and Management Commentary
The filing outlines the structure of the newly awarded Performance Units for the 2008-2010 performance period:
- Performance Period: January 1, 2008, through December 31, 2010.
- Vesting Conditions: Actual shares issued will range from 0% to 200% of the target amount based on three equally weighted metrics: relative total stockholder return versus the S&P 500, sales, and cumulative economic value added.
- Award Targets (assuming 100% performance):
- Dean A. Scarborough (CEO): 18,000 units
- Daniel R. O'Bryant (CFO): 8,138 units
- Robert G. van Schoonenberg (EVP/Secretary): 8,459 units
- Robert M. Malchione (SVP): 6,965 units
Investor Verification Checklist
- Verify the specific terms and vesting schedules in Exhibit 10.19.6 (Forms of Equity Awards under Stock Plan).
- Confirm the final number of shares issued in 2011 based on the three-year performance metrics.
- Review the impact of the rescinded Paxar Corporation plan on future equity dilution.
- Check subsequent filings for the ratification of PricewaterhouseCoopers as independent auditors for fiscal year 2008.