Fabrinet 8-K Summary: Executive Compensation Adjustments
Business Context and Reporting Period
This Form 8-K was filed on October 19, 2014, by Fabrinet, a company incorporated in the Cayman Islands. The report details actions taken by the Compensation Committee of the Board of Directors regarding the compensation of named executive officers.
Key Financial Metrics
The filing does not provide financial performance metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation adjustments.
Material Changes
The Compensation Committee approved increases to the annual base salaries of four named executive officers, effective retroactively as of July 1, 2014. Additionally, two executives received approval for a "Foreign Service Premium Pay."
| Executive Name | Title | Previous Annual Base Salary | Current Annual Base Salary | Additional Compensation |
|---|---|---|---|---|
| David T. Mitchell | CEO and Chairman | $650,000 | $700,000 | None |
| Dr. Harpal Gill | President and COO | $650,000 | $750,000 | 20% of base salary (Foreign Service Premium Pay) |
| Toh-Seng Ng | EVP and CFO | $425,000 | $500,000 | 20% of base salary (Foreign Service Premium Pay) |
| John Marchetti | EVP and Chief Strategy Officer | $375,000 | $425,000 | None |
The Foreign Service Premium Pay is designed to incentivize Dr. Gill and Mr. Ng to continue working in Thailand while their families remain in the United States. This payment is determined and payable bi-monthly with a tax gross-up and continues as long as the executives are required to reside and work in Thailand.
Guidance, Outlook, and Risks
The filing contains no guidance, outlook, management commentary on business performance, risks, contingencies, or unusual items beyond the compensation adjustments described.
Key Facts for Investor Verification
- Salary increases for four executives are effective retroactively to July 1, 2014.
- Dr. Harpal Gill and Toh-Seng Ng receive an additional 20% of their base salary as a Foreign Service Premium Pay due to their temporary residence in Thailand.
- The Foreign Service Premium Pay includes a tax gross-up and is contingent on the executives' continued work in Thailand.
- The filing does not disclose any changes to the company's financial position or operational outlook.