Business Context and Reporting Period
Company: Cohu, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: March 17, 2006
Reporting Period: The filing addresses the approval of performance goals for the fiscal year ending December 30, 2006.
Key Financial Metrics
This filing does not report specific financial results such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation structures.
Material Changes
The material event reported is the entry into a definitive agreement regarding executive compensation. On March 17, 2006, the Compensation Committee approved specific performance goals for Executive Officers for the 2006 fiscal year. No changes to financial performance or operational status are detailed in this report.
Guidance, Outlook, and Management Commentary
Executive Compensation Structure:
- Performance Goals: Goals for the CEO and CFO include revenue, pretax income, strategic business development, customer satisfaction, and new product development. Other Executive Officers (employees of Delta Design, Inc.) have goals including revenue, pretax income, customer satisfaction, and new product development.
- Target Bonus Percentages: 100% of base salary for the CEO; 50% to 75% of base salary for other Executive Officers.
- Maximum Bonus Awards: 100% to 200% of base salary, subject to limitations under the Cohu, Inc. 2005 Equity Incentive Plan.
- Plan Authority: Awards are paid pursuant to the 2005 Equity Incentive Plan, approved by stockholders on May 10, 2005.
- James A. Donahue (President and CEO)
- John H. Allen (VP Finance and CFO)
- Thomas A. Lightner (VP Manufacturing)
- James G. McFarlane (Senior VP)
- Colin P. Scholefield (Senior VP, Sales and Service)
Investor Verification Checklist
- Verify the specific performance metrics (revenue, pretax income targets) set for 2006 in subsequent filings or proxy statements.
- Review the Cohu, Inc. 2005 Equity Incentive Plan to understand the specific limitations on maximum bonus awards.
- Confirm the base salaries of the named Executive Officers to calculate potential bonus liabilities.
- Monitor future 8-K filings or quarterly reports for actual achievement of the 2006 performance goals.