FLUOR CORP - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Fluor Corporation on February 9, 2006. The report details the establishment of performance measures and award levels for executive compensation plans for fiscal year 2006 and the 2006-2007 cycle.
Key Financial Metrics
The filing does not provide specific financial results such as revenue, profit, cash flow, margins, debt, or liquidity figures. It references these metrics only as performance criteria for executive compensation.
Material Changes and Compensation Plans
- Annual Incentive Plan (Fiscal 2006): The Organization and Compensation Committee established targets for executives. Named Executive Officers (NEOs) have targets ranging from 60% to 70% of base salary, with a payout range of 0% to 200%. The CEO, Alan Boeckmann, has a target of 100% of base salary.
- Performance Criteria: Incentives are tied to net earnings, return on operating assets employed, debt levels, safety, and workforce diversity. The CEO's evaluation also includes individually tailored criteria.
- Long Term Incentive Program (VDI Plan): Award levels were set for the two-year cycle of fiscal years 2006 and 2007. NEO targets range from $210,000 to $1,767,000.
- VDI Performance Goals: 75% weighted on new awards gross margin and 25% on new awards gross margin percentage for the 2006-2007 period. Payouts are split 50% in early 2008 and 50% in early 2009.
Guidance, Outlook, and Risks
The filing contains no forward-looking financial guidance, market outlook, or discussion of general business risks. The primary contingency noted is that executive payouts are conditional upon meeting specific performance thresholds related to earnings, asset returns, and debt levels.
Key Facts for Investor Verification
- Executive compensation targets for fiscal 2006 are now formally established, with CEO incentives tied to a 100% base salary target.
- Long-term incentives for the 2006-2007 cycle are heavily weighted (75%) toward gross margin performance on new awards.
- Actual financial performance data (revenue, earnings, debt) referenced as criteria is not disclosed in this specific filing and must be verified in the company's 10-K or 10-Q reports.
- The filing confirms the continued operation of the 2003 Executive Performance Incentive Plan.