HAYNES INTERNATIONAL,INC. (NASDAQ:HAYN) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

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HAYNES INTERNATIONAL,INC. (NASDAQ:HAYN) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Establishment of Deferred Compensation Plan

On November20, 2017, the Board of Directors of Haynes International,Inc. (the “Company”) established the Haynes International,Inc. Deferred Compensation Plan (the “Deferred Compensation Plan”) in order to permit certain non-employee directors of the Company and certain management and highly compensated employees of the Company (including the named executive officers identified below) to make deferrals of (a)all or a portion of their future awards granted in the form of restricted stock grants, and (b)to the extent later expressly permitted by a deferral election form provided by the plan administrator, future annual board and committee cash retainers (in the case of non-employee directors) and future base salary (generally up to 80% of such salary), annual incentive compensation and other awards under the Company’s 2016 Incentive Compensation Plan or relevant successor plans (in the case of employees) and, in the case of employees that have made the maximum pre-tax and/or Roth contributions to such individuals 401(k), to receive match amounts with respect to certain of such deferrals.

Under the Deferred Compensation Plan, the Company will be obligated to issue securities granted under the Company’s 2016 Incentive Compensation Plan or relevant successor plans subject to deferral and make payment at a future date of deferred cash compensation credited to the plan participant’s bookkeeping account, adjusted, where applicable, for any gains or losses attributable to the investments selected by the plan participant. Distributions under the Deferred Compensation Plan will be made according to a plan participant’s elections and the provisions of the Deferred Compensation Plan. The deferred compensation obligations will be general unsecured obligations of the Company.

The Company may amend or terminate the Deferred Compensation Plan in any manner and at any time, provided however, that an amendment or termination may not generally detrimentally impact the rights of participants, former participants or relevant beneficiaries thereof with respect to prior deferrals. The foregoing description of the Deferred Compensation Plan is qualified in its entirety by reference to the full text of the plan document, a copy of which is filed as Exhibit10.1 hereto and is incorporated herein by reference.

Adoption of Management Incentive Plan

On November21, 2017, the Board of Directors of the Company, upon the Compensation Committee’s recommendation, approved the fiscal 2018 Management Incentive Plan (the “Plan”). Under the Plan, certain employees of the Company are eligible for cash awards based on Company performance, including, but not limited to, Mark Comerford, the President and Chief Executive Officer, and the other named executive officers as set forth in the Company’s Definitive Proxy Statement on Form14A for the fiscal year ended September30, 2016, who are Daniel W. Maudlin, Vice President – Finance and Chief Financial Officer; Marlin C. Losch III, Vice President — Sales and Distribution; Scott R. Pinkham, Vice President — Manufacturing and Venkat R. Ishwar, Vice President — Marketing and Technology (Messrs.Comerford, Maudlin, Losch, Pinkham and Ishwar are herein referred to collectively as the “named executive officers”).

If the Company meets certain specific targets for net income established by the Compensation Committee for fiscal 2018 (the “Financial Target”), then each named executive officer is eligible for a cash payment under the Plan based on their respective fiscal 2018 base salaries.

· If the Company’s performance meets the minimum Financial Target, then the cash payments under the Plan would be 40% of fiscal 2018 base salary for Mr.Comerford, 30% of fiscal 2018 base salary for Messr. Maudlin and Pinkham, and 25% of fiscal 2018 base salary for Messrs.Losch and Ishwar.

· If the Company’s performance meets the mid-level Financial Target, then the cash payments under the Plan would be 80% of fiscal 2018 base salary for Mr.Comerford, 60% of fiscal 2018 base salary for Messrs.Maudlin and Pinkham, and 50% of fiscal 2018 base salary for Messrs.Losch and Ishwar.

· If the Company’s performance meets the maximum Financial Target, then the cash payments under the Plan would be 120% of fiscal 2018 base salary for Mr.Comerford, 90% of fiscal 2018 base salary for Messrs.Maudlin and Pinkham, and 75% of fiscal 2018 base salary for Messrs.Losch and Ishwar.

The Board of Directors has full discretion to eliminate, delay or change any awards or payouts and may choose to pay awards at any level of performance. All payments under the Plan must be approved by the Board of Directors.

Equity Grants

Also on November21, 2017, the Board of Directors granted shares of restricted stock, performance shares and stock options to the named executive officers, with a grant date of November21, 2017.

Restricted shares were granted subject to time-based vesting. The restricted shares will vest on the third anniversary of the date of grant, provided that the grantee is still employed by the Company on such date, and are also subject to the terms of the Company’s 2016 Incentive Compensation Plan. The performance shares will be settled in shares of the Company’s common stock on the third anniversary of their grant date, provided that (a)the named executive officer is still employed by the Company and (b)the Company has met at least a threshold relative total shareholder return target (relative to a comparator group of the Company). The number of performance shares earned will vary based on the Company’s percentile of total shareholder return as compared to the comparator group and the awards are subject to the terms and conditions of the Company’s 2016 Incentive Compensation Plan.

The stock options vest in three equal annual installments beginning on the anniversary of the date of grant and are also subject to the terms and conditions of the Company’s 2016 Incentive Compensation Plan. The total value of stock options, restricted shares and target performance shares for Mr.Comerford was approximately 126% of his fiscal 2018 base salary, for Mr.Maudlin was approximately 81% of his fiscal 2018 base salary and for Messrs.Losch and Ishwar was approximately 71% of their respective base salaries for fiscal 2018, and for Mr.Pinkham was approximately 70% of his respective base salary for fiscal 2018.

Grants were made to the named executive officers in the following amounts:

NamedExecutive Officer

Target Performance

Shares(1)

Restricted Shares

StockOptions

Mark M. Comerford

8,600

9,800

20,000

Daniel W. Maudlin

2,500

2,850

5,800

Marlin C. Losch

2,100

2,400

4,850

Scott R. Pinkham

2,150

2,450

5,000

Venkat R. Ishwar

2,150

2,500

5,050

(1)[Represents shares earned if relative total shareholder return amounts to at least the 50thpercentile of the comparator group.] Actual shares earned would range based on performance beginning at the 30thpercentile of the comparator group to top performance within the group.

Item 9.01. Financial Statement and Exhibits.


HAYNES INTERNATIONAL INC Exhibit
EX-10.1 2 a17-27585_1ex10d1.htm EX-10.1 Exhibit 10.1   HAYNES INTERNATIONAL,…
To view the full exhibit click here

About HAYNES INTERNATIONAL,INC. (NASDAQ:HAYN)

Haynes International, Inc. (Haynes) is a producer of nickel- and cobalt-based alloys in flat product forms, such as sheet, coil and plate forms. The Company also produces its products as seamless and welded tubulars, and in slab, bar, billet and wire forms. It focuses on developing, manufacturing, marketing and distributing alloys, which are sold in the aerospace, chemical processing and industrial gas turbine industries. Its products consist of high-temperature resistant alloys (HTA) products and corrosion-resistant alloys (CRA) products. Its HTA products are used in manufacturing components for the hot sections of gas turbine engines. Its CRA products are used in a range of applications, such as chemical processing, power plant emissions control, hazardous waste treatment, sour gas production and pharmaceutical vessels. The Company has a four-high Steckel rolling mill used in hot rolling high-performance alloys. The Company has operations in the United States, Europe and China.