UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 28, 2008
Advanced Energy Industries, Inc.
(Exact name of registrant as specified in its charter)
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Delaware
(State or other jurisdiction
of incorporation)
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000-26966
(Commission
File Number)
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84-0846841
(IRS Employer
Identification No.) |
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1625 Sharp Point Drive, Fort Collins, Colorado
(Address of principal executive offices)
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80525
(Zip Code) |
Registrant’s telephone number, including area code: (970) 221-4670
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 5.02(e) Compensatory Arrangements of Certain Officers
Leadership Corporate Incentive Plan
On October 28, 2008, the Compensation Committee (the “Committee”) of the Board of Directors of
Advanced Energy Industries, Inc. approved the Leadership Corporate Incentive Plan (the “Leadership
Plan”), which provides the company’s executive officers and other key leaders with the opportunity
to earn cash bonuses based on achievement of corporate and individual performance criteria.
Beginning with the fiscal year 2009, the Leadership Plan replaces the company’s Leadership
Performance Incentive Plan. Advanced Energy also maintains a separate employee corporate incentive
plan (the “Employee Plan”). Participants in the Leadership Plan do not participate in the Employee
Plan.
Pursuant to the Leadership Plan and Employee Plan, the company will fund a bonus pool equal to 10%
of the company’s annual operating income, to be shared among participants in both plans. Individual
bonuses under the Leadership Plan will be awarded only if specified corporate performance
thresholds with respect to annual revenue and operating income are met. The amount of any
individual bonus under the Leadership Plan will be based upon such participant’s pre-established
target bonus, performance review and accomplishment of individual performance objectives determined
by management, subject to consideration of the total size of the bonus pool and the limitation that
no participant in the Leadership Plan shall receive a bonus greater than 150% of such participant’s
target bonus.
The target bonuses for executive officers under the Leadership Plan, expressed as a percentage of
base salary, are 90% of base salary for Hans Georg Betz, Chief Executive Officer and 60% of base
salary for each of Lawrence D. Firestone, Executive Vice President and Chief Financial Officer, and
Yuval Wasserman, Executive Vice President, Sales, Marketing and Service
The individual performance objectives applicable to the participants in the Leadership Plan relate
to profitability, growth, quality and other key metrics set forth in the company’s annual operating
plan that is approved annually by the Board of Directors.