Flex Ltd.
16/08/2024 | Press release | Distributed by Public on 17/08/2024 03:07
Management Change/Compensation Form 8 K
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
(e) Executive Compensation
As previously announced, Mr. Jaime Martinez began serving as the Interim Chief Financial Officer of Flex Ltd. (the "Company") effective August 1, 2024, upon the resignation of the Company's former Chief Financial Officer effective July 31, 2024. On August 15, 2024, the Company's Board of Directors (the "Board"), upon the recommendation of its Compensation and People Committee (the "Committee"), approved a new compensatory arrangement for Mr. Martinez in connection with his service as Interim Chief Financial Officer. Under this arrangement, Mr. Martinez has received a one-time service-based restricted share unit ("RSU") award with a grant date fair value of $300,000, which will vest, subject to Mr. Martinez's continued employment with the Company, in two equal installments on the first two anniversaries of the grant date. Additionally, under this arrangement, as long as he remains in the role of Interim Chief Financial Officer, Mr. Martinez will receive a monthly cash payment incremental to his base salary of $50,000.
In addition, on August 15, 2024, the Board, upon the Committee's recommendation, approved a base salary increase for Mr. Hooi Tan, the Company's President, Global Operations and Components, from $700,000 to $735,000, with such increase being retroactive to August 1, 2024, in connection with Mr. Tan's assumption of additional responsibilities.
Finally, on August 15, 2024, the Board, upon the Committee's recommendation, approved the following compensation changes for Mr. Michael P. Hartung in connection with his promotion to the role of Chief Commercial Officer: (i) an increase in the annual incentive bonus target from 100% to 110% of Mr. Hartung's base salary, and (ii) a $500,000 increase in the anticipated value of his long-term incentive award value for the 2025 fiscal year from $1.8 million to $2.3 million. Mr. Hartung has received the above increase in long-term equity award value via a service-based RSU award with a grant date fair value of $500,000, which will vest, subject to Mr. Hartung's continued employment with the Company, in three equal installments on the first three anniversaries of the grant date.
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