Business Context and Reporting Period
This Form 8-K was filed by E. I. du Pont de Nemours and Company on February 3, 2006. The report details the approval of executive compensation awards by the Compensation Committee of the Board of Directors on January 31, 2006, effective February 1, 2006.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margins, debt, or liquidity metrics. It focuses exclusively on executive compensation awards for the 2005 fiscal year and grants effective for the 2006-2008 performance period.
Material Changes and Executive Compensation
The Board approved variable compensation awards and equity grants for five named executive officers. The variable compensation reflects corporate results for 2005. The equity grants include stock options, time-vested restricted stock units (RSUs), and performance-based RSUs.
| Executive Officer | Title | Variable Compensation ($) | Stock Options | Time-Vested RSUs | Performance-Based RSUs |
|---|---|---|---|---|---|
| T. M. Connelly, Jr. | SVP & Chief Science & Technology Officer | 481,000 | 67,000 | 12,900 | 12,900 |
| R. R. Goodmanson | EVP & Chief Operating Officer | 682,000 | 94,300 | 18,100 | 19,000 |
| J. C. Hodgson | Senior Vice President | 388,000 | 44,400 | 8,500 | 10,000 |
| S. J. Mobley | SVP, Chief Administrative Officer & General Counsel | 458,000 | 67,000 | 12,900 | 12,900 |
| G. M. Pfeiffer | SVP & Chief Financial Officer | 458,000 | 67,000 | 12,900 | 12,900 |
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, outlook, or discussion of risks and contingencies. It notes that the performance period for the performance-based RSUs is 2006 to 2008 and that the awards are subject to the terms of the Company's Variable Compensation Plan and Stock Performance Plan.
Investor Verification Checklist
- Verify the specific performance metrics tied to the 2006-2008 performance-based RSUs in the Stock Performance Plan.
- Review the Variable Compensation Plan (Exhibit 10.5 to the 2004 10-K) to understand the criteria for the 2005 variable compensation awards.
- Confirm the vesting schedules and exercise prices for the granted stock options and time-vested RSUs.
- Check subsequent filings for the actual payout of the variable compensation and the vesting status of the equity awards.