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Spansion board group approves executive, employee incentive plans
By Caroline Salls
Pittsburgh, Aug. 28 - Spansion Inc.'s board of directors compensation committee has approved a key employee incentive plan under which some of the company's vice presidents will receive performance-based cash bonuses, according to an 8-K filed with the Securities and Exchange Commission.
The plan excludes the company's chief executive officer.
Under the incentive plan, the executives will receive up to 35% of their respective base salaries if Spansion achieves cash and EBITDA objectives by Oct. 1; 35% of their respective base salaries if the company achieves other EBITDA objectives by April 1, 2010; and up to an additional 30% of their respective base salaries if the company exceeds EBITDA objectives by April 1, 2010.
In addition, Spansion said the committee has approved a retention plan, a sales incentive plan and award programs for employees not participating in the executive incentive plan.
Under the retention plan, employees may receive bonuses of between 2% and 30% of their respective base salaries if they remain employed by Spansion as of specified dates in fiscal 2009 and 2010.
Under the sales incentive plan, employees directly responsible for the sale of products may receive bonuses between 15% and 50% of their respective base salaries if they achieve individual and corporate performance objectives.
Under the award programs, the company's management may provide discretionary cash bonuses to individual employees for their contributions to Spansion.
Spansion, a Sunnyvale, Calif.-based maker of flash memory products, filed for bankruptcy on March 1 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-10690.
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