FLEXSTEEL INDUSTRIES, INC. (NASDAQ:FLXS) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On June 7, 2020, the Flexsteel Industries, Inc. (the “Company”) Compensation Committee (“Committee”) approved the terms of certain awards under the Company’s Cash Incentive Plan and Long-Term Incentive Plan. The Committee’s actions are designed to address the near-term economic uncertainty due to the COVID-19 pandemic and continued global trade tensions while ensuring executive compensation plans promote long-term shareholder value creation at an acceptable level of risk.
Under the Cash Incentive Plan, the awards for the fiscal year ended June 30, 2021 will be based on two six-month performance periods, July 1, 2020 to December 31, 2020 and January 1, 2021 to June 30, 2021. The Committee has established performance objectives for the first six-month period and any awards will be paid after the release of the second fiscal quarter results. The performance objectives for the second six-month period will be set in January 2021 and any related awards will be paid upon the release of the fiscal 2021 year-end results.
For awards under the Long-Term Incentive Plan for the three-year period ended June 30, 2022, participants may earn 1/3 of the award in each of the three years based on meeting performance objectives for that year. The cumulative award payout for all three years is made after the end of the third year. The performance objectives for the second and third years were to be based on a set growth rate of the performance objectives over the previous year’s financial results. Because of the adverse impact of the COVID-19 pandemic and continued global trade tensions on the Company’s financial results for the period ending June 30, 2020, the calculation of the performance objectives for the second year using the established growth rates in the plan would have resulted in financial goals that are not aligned to long-term shareholder value creation. As a result, performance objectives for the second year of the three-year award period ending June 30, 2022 were modified.
Under the Long-Term Incentive Plan for the three-year period ended June 30, 2023, participants may earn 1/3 of the award each of the three years based on meeting the performance objectives for that year. The cumulative award payout for all three years is made after the end of the third year. Specific performance objectives for the first year of the three-year award period have been set by the Committee. The performance objectives for years two and three will be based on set financial improvement goals over the previous year’s actual results of the performance objectives.
About FLEXSTEEL INDUSTRIES, INC. (NASDAQ:FLXS)
Flexsteel Industries, Inc. is a manufacturer, importer, marketer and distributor of residential and commercial upholstered and wood furniture products in the United States. The Company offers its products for contract under categories, such as hospitality, healthcare, senior living, government and commercial office. It offers furniture for common areas, guest rooms, dining areas, patient rooms, resident rooms, work spaces, reception areas, administrative and collaborative spaces. Its range of offering includes chairs, sofas, benches, ottomans, pillows, barstools, tables, headboards, group seating, desks & hutches, causeway collection, presentation boards, bookcases, recliners and storage. It also offers sectionals, reclining furniture, lift reclining furniture, media consoles, night stands and side tables, among others, for home. It offers various products for recreation, such as bucket seats, fold-n-tumble, dinette seating, helm seating and modular sectionals.