Business Context and Reporting Period
This Form 8-K Current Report was filed by Avery Dennison Corporation on December 23, 2008, covering events occurring on December 18, 2008. The filing addresses corporate governance and executive compensation matters rather than operational or financial performance results.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report is strictly administrative regarding executive compensation plans and contains no financial statement data.
Material Changes
The primary material change reported is the ratification by the Board of Directors of amendments to the Supplemental Executive Retirement Plan ("SERP") and associated Letters of Grant. These changes were implemented to ensure compliance with Section 409A of the Internal Revenue Code, which governs nonqualified deferred compensation arrangements. The amendments affect deferral elections and the timing and form of payments.
Guidance, Outlook, and Risks
The filing does not contain guidance, outlook, or management commentary regarding future business performance. The specific risk addressed is regulatory compliance with Section 409A of the Internal Revenue Code. The unusual item is the specific amendment of executive retirement benefits for three key officers: Dean A. Scarborough (CEO), Robert G. van Schoonenberg (Chief Legal Officer), and Daniel R. O'Bryant (CFO).
Investor Verification Checklist
- Verify the specific terms of the amended SERP and Letters of Grant in Exhibits 10.11.1 through 10.11.4.1.
- Confirm that the amendments fully satisfy Section 409A requirements to avoid adverse tax consequences for the executives.
- Note that this filing does not impact the company's reported financial results for the period.