Finisar Corp. (FNSR, Financial) filed Amended Annual Report for the period ended 2009-04-30.
FINISAR CORP. is a provider of fiber optic subsystems and network test and monitoring systems which enable high-speed data communications over local area networks or LANs storage area networks or SANs and metropolitan access networks or MANs. They are focused on the application of digital fiber optics to provide aline of high-performance reliable value-added optical subsystems for data networking and storage equipment manufacturers. Finisar Corp. has a market cap of $429.2 million; its shares were traded at around $0.8846 with a P/E ratio of 17.7 and P/S ratio of 0.7.
In February 2008, in light of deteriorating global market conditions and their effect on our then current and prospective operating results and financial condition, the Compensation Committee determined to temporarily reduce the base salaries of our Chairman, Chief Executive Officer and all other executive officers by 10%. This determination was not based on individual performance, but was made as part of a broad-based 10% reduction in base salary that affected all of our U.S.-based employees (provided that no base salary was reduced below $50,000). This 10% reduction remains in effect and is subject to periodic review by the Compensation Committee.
The Compensation Committee also established the methodology for the calculation of individual bonuses. Under this methodology, the bonus for each executive officer, other than the Chairman and the Chief Executive Officer, was to be based: 70% on the achievement of goals to improve Finisars cash balance as of the end of fiscal 2009 and 30% on the achievement of individual performance goals established by the Chairman and the Chief Executive Officer. The bonuses for the Chairman and the Chief Executive Officer were to be based: 70% on the achievement of goals to improve Finisars cash balance as of the end of fiscal 2009 and 30% on such other considerations as the Compensation Committee, in its discretion, shall determine. The Compensation Committee subsequently determined that the portion of the fiscal 2009 target bonuses to be based on improvement in the Companys cash position would be based on the year-to-year improvement in the
Companys annual cash flow, with any percentage improvement multiplied by 0.70 and the resulting fraction multiplied by the amount of the target bonus. These target bonuses were equal to 100% of each executive officers base salary for fiscal 2009 and represented increases of between 4.4% and 4.6% over the target bonuses for these executive officers in fiscal 2008 and increases of between 344% and 658% over the bonuses they were actually awarded for their services in fiscal 2008. The Compensation Committee determined that the increased target bonuses and revised methodology were appropriate to better align our executive compensation package with those of our peer companies and our financial priorities for fiscal 2009.
Read the The complete ReportFNSR is in the portfolios of Charles Brandes of Brandes Investment.
FINISAR CORP. is a provider of fiber optic subsystems and network test and monitoring systems which enable high-speed data communications over local area networks or LANs storage area networks or SANs and metropolitan access networks or MANs. They are focused on the application of digital fiber optics to provide aline of high-performance reliable value-added optical subsystems for data networking and storage equipment manufacturers. Finisar Corp. has a market cap of $429.2 million; its shares were traded at around $0.8846 with a P/E ratio of 17.7 and P/S ratio of 0.7.
Highlight of Business Operations:
In December 2008, the Compensation Committee established base salaries for fiscal 2009. Our Chairman received a 4.5% increase in his annual base salary, our Chief Executive Officer received a 9.9% increase in his annual base salary, and our other named executive officers received increases in base salary which ranged between 4.4% and 4.6%, all effective as of July 15, 2008.In February 2008, in light of deteriorating global market conditions and their effect on our then current and prospective operating results and financial condition, the Compensation Committee determined to temporarily reduce the base salaries of our Chairman, Chief Executive Officer and all other executive officers by 10%. This determination was not based on individual performance, but was made as part of a broad-based 10% reduction in base salary that affected all of our U.S.-based employees (provided that no base salary was reduced below $50,000). This 10% reduction remains in effect and is subject to periodic review by the Compensation Committee.
The Compensation Committee also established the methodology for the calculation of individual bonuses. Under this methodology, the bonus for each executive officer, other than the Chairman and the Chief Executive Officer, was to be based: 70% on the achievement of goals to improve Finisars cash balance as of the end of fiscal 2009 and 30% on the achievement of individual performance goals established by the Chairman and the Chief Executive Officer. The bonuses for the Chairman and the Chief Executive Officer were to be based: 70% on the achievement of goals to improve Finisars cash balance as of the end of fiscal 2009 and 30% on such other considerations as the Compensation Committee, in its discretion, shall determine. The Compensation Committee subsequently determined that the portion of the fiscal 2009 target bonuses to be based on improvement in the Companys cash position would be based on the year-to-year improvement in the
Companys annual cash flow, with any percentage improvement multiplied by 0.70 and the resulting fraction multiplied by the amount of the target bonus. These target bonuses were equal to 100% of each executive officers base salary for fiscal 2009 and represented increases of between 4.4% and 4.6% over the target bonuses for these executive officers in fiscal 2008 and increases of between 344% and 658% over the bonuses they were actually awarded for their services in fiscal 2008. The Compensation Committee determined that the increased target bonuses and revised methodology were appropriate to better align our executive compensation package with those of our peer companies and our financial priorities for fiscal 2009.
Read the The complete ReportFNSR is in the portfolios of Charles Brandes of Brandes Investment.
