Business Context and Reporting Period
This Form 8-K Current Report was filed by NetApp, Inc. on May 7, 2010. The filing discloses Item 5.02(e) regarding the approval of compensatory arrangements for senior executives for fiscal year 2011.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margins, debt, or liquidity figures. It focuses exclusively on executive compensation structures.
Material Changes Versus Prior Period
The Compensation Committee approved modest salary increases for three named executive officers for fiscal year 2011 compared to fiscal year 2010, while salaries for two others remained unchanged. Target incentive compensation percentages remained unchanged for all officers.
- Thomas Georgens (CEO): Base salary increased from $825,000 to $875,000.
- Robert E. Salmon (EVP, Field Operations): Base salary increased from $530,000 to $560,000.
- Steven J. Gomo (CFO): Base salary increased from $500,000 to $530,000.
- Daniel J. Warmenhoven (Executive Chairman): Base salary remained at $450,000.
- Thomas F. Mendoza (Vice Chairman): Base salary remained at $600,000.
Guidance, Outlook, and Management Commentary
The filing outlines the performance metrics for the fiscal year 2011 bonus pool. Funding is based on actual achievement against annual targets, weighted as follows:
- Revenue: 1/3 weight
- Operating Profit: 2/3 weight
New base salaries are effective August 2, 2010. Target incentive compensation awards are effective for the fiscal year beginning May 1, 2010.
Important Facts for Investor Verification
- Verify the specific performance targets for revenue and operating profit required to trigger the 2011 bonus pool.
- Confirm the total equity or long-term incentive components not detailed in this specific 8-K summary.
- Review the full Executive Compensation Plan filed as an exhibit to the August 20, 2009 Proxy Statement for detailed payout terms.