Business Context and Reporting Period
Company: COHU INC
Filing Type: Form 8-K (Current Report)
Date of Report: March 21, 2008
Reporting Period: Fiscal year ending December 27, 2008
This filing reports the entry into a material definitive agreement regarding executive compensation performance goals for the fiscal year 2008.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on the structure of executive bonus plans rather than financial performance results.
Material Changes
On March 21, 2008, the Compensation Committee approved specific performance goals for executive officers for the fiscal year ending December 27, 2008. This represents a formalization of compensation criteria rather than a change in financial status.
Guidance, Outlook, and Management Commentary
- Performance Goals:
- CEO and CFO: Revenue, pretax income, margin improvement, and strategic growth/business development.
- Other Executive Officers (Delta Design, Inc.): Revenue, pretax income, customer satisfaction, cost reduction, margin improvement, and functional performance measures.
- Bonus Structure:
- Target Bonus: 100% of base salary for the CEO; 50% of base salary for other Executive Officers.
- Maximum Bonus: 100% to 200% of base salary, subject to limitations of the 2005 Equity Incentive Plan.
- Executive Officers Identified: James A. Donahue (CEO), Jeffrey D. Jones (CFO), James G. McFarlane (SVP), Colin P. Scholefield (SVP Sales and Service), and James P. Walsh (VP Manufacturing).
Investor Verification Checklist
- Verify the specific quantitative targets for revenue and pretax income required to trigger the bonus awards.
- Review the Cohu, Inc. 2005 Equity Incentive Plan to understand the specific limitations on maximum bonus awards.
- Confirm the base salary figures for the named executive officers to calculate potential payout amounts.
- Monitor subsequent filings for actual performance results against the established fiscal 2008 goals.