Business Context and Reporting Period
Company: The Eastern Company
Filing Type: Form 8-K (Current Report)
Date of Report: February 9, 2011
Reporting Period: Specific event date (February 9, 2011)
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on corporate governance and executive compensation.
Material Changes
The primary material event reported is the entry into a Material Definitive Agreement regarding executive compensation:
- Approval Date: February 9, 2011
- Subject: 2011 Executive Incentive Program under the Company's Executive Incentive Plan.
- Applicable Officers: Leonard F. Leganza (Chairman, President, CEO) and John L. Sullivan III (Vice President, CFO).
- Performance Metrics: Incentives are based on Division Earnings (75% weight) and Working Capital (25% weight).
- Payout Potential: Officers can earn up to 100% of their salary based on target achievement.
Guidance, Outlook, and Risks
The filing text does not provide financial guidance, outlook, management commentary on market conditions, or specific risk factors. The document is limited to the disclosure of the approved incentive plan structure.
Investor Verification Checklist
- Verify the specific Division Earnings and Working Capital targets set for the 2011 fiscal year.
- Review the base salaries of the Named Executive Officers to calculate maximum potential payout values.
- Confirm if this plan supersedes or modifies previous incentive structures.
- Check subsequent filings for actual performance results against the 75/25 metric split.