Business Context and Reporting Period
Company: First Advantage Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: March 31, 2006
Subject: Entry into a Material Definitive Agreement regarding the adoption of a senior executive annual incentive program for fiscal year 2006.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation structure.
Material Changes
The Compensation Committee recommended the adoption of the "2006 Incentive Program" on March 31, 2006. This program establishes performance measurement criteria for determining bonus eligibility for senior executives. Key structural elements include:
- Eligibility: Named executive officers (CEO, President, CFO, COO) and certain senior executives (CIO, General Counsel, Division Presidents).
- Threshold Requirement: No bonuses will be awarded if threshold quantitative measurements related to corporate financial goals are not met.
- Payment Timing: Cash bonuses will be calculated based on audited financial results at the end of the fiscal year and paid in the first quarter of 2007.
Guidance, Outlook, and Management Commentary
The filing details the specific bonus structures and performance weights for key personnel:
- CEO and President: Eligible for a cash bonus up to 125% of base salary and an equity bonus, contingent on corporate financial goals.
- CFO, COO, and Division Presidents: Maximum cash bonus of 125% of base salary. Performance is weighted between corporate goals and individual qualitative measurements.
- CIO and General Counsel: Maximum cash bonus of 100% of base salary.
The plan is effective for fiscal 2006 and may be modified at the discretion of the Committee and Board. A summary will be filed upon formal Board adoption.
Investor Verification Checklist
- Verify the formal adoption of the 2006 Incentive Plan by the Board of Directors.
- Review the specific quantitative corporate financial goals required to trigger any bonus payments.
- Monitor the first quarter of 2007 for the actual payout of bonuses based on audited 2006 results.
- Check for subsequent filings (amendments) detailing the final Board-approved plan summary.