Business Context and Reporting Period
This Form 8-K was filed by Fabrinet on August 13, 2015. The report details the adoption of the Fiscal 2016 Executive Incentive Plan and the announced departure of a named executive officer.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures. It focuses exclusively on executive compensation structures and personnel changes.
Material Changes
- Executive Departure: John Marchetti, Executive Vice President and Chief Strategy Officer of Fabrinet USA, Inc., will resign effective December 31, 2015.
- Compensation Plan Adoption: The Compensation Committee adopted the Fiscal 2016 Executive Incentive Plan (Bonus Plan) for executive officers.
Guidance, Outlook, and Management Commentary
The filing outlines the performance metrics tied to the new Bonus Plan for fiscal year 2016 (ending June 27, 2016). Bonus payouts are determined by:
- 20% based on individual performance objectives.
- 40% based on fiscal 2016 revenue targets.
- 40% based on fiscal 2016 non-GAAP earnings per share targets.
Payout Structure:
- 90% achievement of a financial target results in 50% of the target bonus for that component.
- 100% achievement results in 100% of the target bonus.
- 105% achievement results in 200% of the target bonus (maximum).
- Performance between thresholds is scaled linearly.
Target Bonus Percentages (of Base Salary):
| Executive Officer | Title | Target Bonus | Maximum Bonus |
|---|---|---|---|
| David T. Mitchell | CEO and Chairman | 120% | 240% |
| Dr. Harpal Gill | President and COO | 95% | 190% |
| Toh-Seng Ng | EVP and CFO | 80% | 160% |
| John Marchetti | EVP and Chief Strategy Officer | 40% | 80% |
Investor Verification Checklist
- Verify the effective date of John Marchetti's resignation (December 31, 2015) and any succession plans for the Chief Strategy Officer role.
- Confirm the specific revenue and non-GAAP EPS targets for fiscal 2016, as these are not disclosed in this filing but determine executive payouts.
- Review the impact of the executive departure on the company's strategic initiatives.