TE CONNECTIVITY LTD. (NYSE:TEL) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
TE Connectivity Ltd. (the “Company”) previously reported that on March8, 2017, Terrence Curtin succeeded Thomas Lynch as Chief Executive Officer of the Company and Mr.Lynch would thereafter serve as the Executive Chairman of the Company. On November13, 2017, the Company approved an increase in Mr.Curtin’s base salary to $1,150,000, effective December25, 2017, and increased his annual bonus target to 150% of base salary in accordance with the annual bonus plan then in effect for executive officers of the Company.
On November13, 2017, in connection with the Company’s annual equity award program, the Company (i)granted to Mr.Curtin non-qualified stock options to purchase 189,350 common shares and performance stock units (“PSUs”) representing 35,980 shares at target level, (ii)granted to Mr.Lynch in recognition of his service as Executive Chairman non-qualified stock options to purchase 43,700 common shares and PSUs representing 8,300 shares at target level. The foregoing equity awards were granted under the terms of the Company’s 2007 Stock and Incentive Plan.
The stock options granted have an exercise price of $93.36, vest in equal installments over four years starting on the first anniversary of the grant date and expire on the tenth anniversary of the grant date.
The PSUs granted provide the opportunity to earn shares of the Company’s stock based on the Company’s earnings per share (“EPS”) growth relative to the Standard& Poor’s 500 Non-Financial Companies Index over a three-year performance cycle which concludes at the end of Fiscal-Year 2020. A three-year average EPS growth metric will be used to determine relative performance and calculate earned shares at the end of the three-year performance period. Target shares, or 50%, will only be earned for EPS growth at the 50th percentile. Maximum payout is 200% and is earned for EPS growth at the 75th percentile of the index. In order to earn any shares under the program a minimum threshold must be achieved. Specifically, EPS growth must be at the 25th percentile of the index. PSUs will be paid in the form of the Company’s common stock, together with dividend equivalent stock units that accrued commensurate with the portion of the PSUs that are vested.