Business Context and Reporting Period
This Form 8-K Current Report was filed by MagnaChip Semiconductor LLC on November 3, 2006, covering events occurring on November 1, 2006. The filing addresses Item 5.02 regarding the appointment of a principal officer.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on executive compensation and appointment details.
Material Changes
Effective November 1, 2006, Margaret Sakai was appointed as Senior Vice President and Corporate Controller. Prior to this role, she served as Vice President of Photronics, Inc. and Executive Vice President and CFO of PKL Corporation.
Management Commentary and Compensation Details
- Base Salary: $250,000 per year.
- Incentive Bonus: Target annual opportunity of 50% of base salary.
- Equity Grant: Options to purchase 75,000 common units at $3.00 per unit. Vesting begins at 25% on the first anniversary, followed by 6.25% every three months thereafter.
- Benefits: Includes customary employee benefits, expatriate benefits (school tuition, tax equalization), company car with driver, and housing accommodations.
- Termination Provisions: Employment is at-will. Termination without cause entitles Ms. Sakai to six months of base salary, a prorated bonus, and six months of continued benefit participation.
Investor Verification Checklist
- Verify the vesting schedule and exercise price of the 75,000 stock options granted to the new Corporate Controller.
- Confirm the total annualized compensation cost including the target bonus and expatriate benefits.
- Review the company's recent financial statements to assess the impact of this new executive compensation package on operating expenses.