Business Context and Reporting Period
Company: Fox Factory Holding Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: May 7, 2021
Event Reported: Adoption of a Deferred Compensation Plan effective June 30, 2021.
Key Financial Metrics
This filing does not contain financial performance data. The document does not provide values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes
The material change reported is the establishment of the Fox Factory Holding Corp. Deferred Compensation Plan. Key features include:
- Eligibility: A select group of management, employees, and non-employee directors.
- Deferral Options: Participants may defer base salary, bonus compensation, or director fees.
- Vesting: Deferrals are 100% vested at all times. Discretionary credits vest per a schedule but immediately vest upon a change in control.
- Structure: The plan is unfunded for tax purposes and under Title I of ERISA. A "rabbi trust" was authorized to accumulate assets, though these assets remain subject to creditor claims.
Guidance, Outlook, and Risks
Management Commentary: The Company intends for the Plan to comply with Section 409A of the Code.
Risks and Contingencies: Participants are unsecured general creditors of the Company regarding benefits under the Plan. Assets in the rabbi trust are not protected from the Company's creditors.
Investor Verification Checklist
- Confirm the effective date of the Deferred Compensation Plan (June 30, 2021).
- Verify the specific vesting schedules for discretionary credits as set by the Plan Committee.
- Review the Company's overall debt levels to assess the risk exposure of participants as unsecured creditors.
- Check for subsequent filings regarding the appointment of the Plan Committee.