Coherent Corp Grants RSUs and PSUs to CEO

Coherent Corp. (NYSE: COHR) has announced the grant of restricted stock units (RSUs) and performance stock units (PSUs) to its new Chief Executive Officer, James R. Anderson, effective June 3, 2024. The RSUs cover 147,214 shares of the company's common stock and will vest in three substantially equal installments on the first three anniversaries of the grant date, subject to Mr. Anderson's continued employment. On the other hand, the PSUs cover a target of 694,007 shares of the company's common stock and will vest based on the company’s total shareholder return (TSR) for the period beginning on the grant date and ending on June 30, 2027, relative to returns on the S&P Composite 1500—Electronic Equipment, Instruments & Components for that performance period.

The performance metrics for the PSUs are clearly outlined: performance below the 25th percentile results in no payout, performance at the 25th percentile results in a 50% payout, performance at the 55th percentile results in a 100% payout, and performance at or above the 75th percentile results in a 250% payout. However, the payout for performance above target is capped at 100% if the company’s absolute TSR for the performance period is negative. Mr. Anderson is also required to remain employed with the company through the end of the performance period for the PSUs to vest.

Furthermore, the press release mentioned that the RSUs and PSUs include vesting treatment on termination of employment or "change in control" consistent with the company’s standard terms for executive officers. It was also noted that each award was granted as a material inducement to employment in accordance with the NYSE Listed Company Manual Rule 303a.08.

These inducement grants were made as part of the company’s efforts to attract and retain top talent, with the aim of driving the company's performance and success in the coming years. As a result of these announcements, the company's shares have moved -0.5% on the market, and are now trading at a price of $66.42. For more information, read the company's full 8-K submission here.

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