Business Context and Reporting Period
This Form 8-K Current Report was filed by Avery Dennison Corporation on February 22, 2006. The report details actions taken by the Compensation and Executive Personnel Committee of the Board of Directors regarding executive compensation plans for the 2006 fiscal year and the 2006-2008 cycle.
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 establishment of performance metrics for compensation rather than reporting financial results.
Material Changes
The material change reported is the formal establishment of performance measures for executive compensation plans:
- Annual Bonus Plan (2006): Performance measures include earnings per share (EPS) and return on total capital for company-wide participants. Business unit participants are measured on sales, economic value added (EVA), and net income, or EVA and net income depending on the unit.
- Long-Term Incentive Plan (2006-2008): Performance measures include EPS, EVA, and total stockholder return for company-wide participants. Business unit participants are measured on sales, EVA, and net income.
Guidance, Outlook, and Risks
The filing does not contain financial guidance, outlook, or specific risk factors. It notes that bonuses are calculated as a percentage of base salary in effect at the end of the year or cycle and are contingent upon meeting threshold, target, or maximum performance objectives.
Key Facts for Investor Verification
- Compensation for 2006 and the 2006-2008 cycle is tied to specific metrics including EPS, EVA, and total stockholder return.
- Bonus eligibility is contingent on meeting defined performance thresholds at the company or business unit level.
- The filing does not disclose the specific target values for these metrics or the potential payout percentages.