SEC Filing Summary: SYNNEX CORPORATION (8-K)
Business Context and Reporting Period
This Form 8-K was filed on October 29, 2010, by SYNNEX Corporation (Delaware). The report discloses amendments to compensatory arrangements for specific officers effective as of the filing date.
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 executive compensation adjustments rather than financial performance data.
Material Changes
The primary material change is the amendment of Restricted Stock Unit (RSU) awards granted on April 29, 2010, to:
- Dennis Polk, Chief Operating Officer
- Peter Larocque, President, U.S. Distribution
The amendments introduce performance-based vesting conditions tied to Earnings Before Income and Taxes (EBIT) growth.
Guidance, Outlook, and Management Commentary
The amended RSU agreements establish the following performance targets for vesting:
- Fourth Anniversary Vesting: Requires a cumulative 5% Compound Annual Growth Rate (CAGR) in EBIT from continuing operations for fiscal years ending November 30, 2011 through 2013.
- Fifth Anniversary Vesting: Requires a cumulative 5% CAGR in EBIT from continuing operations for fiscal years ending November 30, 2011 through 2014.
Standard vesting continues for a portion of the RSUs based solely on continuous employment. In the event of an officer's death prior to the fifth anniversary, shares that would have vested on an annual basis will be transferred to the officer's estate.
Investor Verification Checklist
- Verify the specific number of RSUs granted to Dennis Polk and Peter Larocque on April 29, 2010.
- Confirm the exact split between time-based vesting and performance-based vesting within the amended agreements.
- Review future 10-K and 10-Q filings to track SYNNEX's EBIT performance against the 5% CAGR targets for fiscal years 2011 through 2014.
- Examine Exhibit 10.1 (Form of Stock Unit Agreement) for detailed forfeiture clauses and other conditions not summarized in the 8-K text.