Fabrinet (NYSE:FN), a manufacturer specializing in precision optical, electro-mechanical, and electronic manufacturing services, has announced an amendment to the employment agreement with its President and Chief Operating Officer, Dr. Harpal Gill. The updated terms were disclosed in a Form 8-K filing with the Securities and Exchange Commission today.
According to the filing, the amended agreement, dated December 19, 2024, reconfirms Dr. Gill's annual base salary of $1.1 million, alongside an annual cash bonus opportunity of at least 95% of his base salary. The bonus is contingent on the achievement of performance objectives evaluated by the company's Compensation Committee.
Furthermore, the amended offer outlines provisions for Dr. Gill's role in the event of the appointment of a new COO. Should another individual be appointed COO while Dr. Gill remains employed, he will continue serving as President.
His responsibilities will extend to recruiting and training a successor COO, who is expected to commence by December 31, 2027, or within six months following the initiation of a defined notice period.
The terms of termination are also specified, allowing either party to end the employment with a one-year notice period. However, the company retains the right to terminate employment immediately for cause. During the notice period or after the appointment of a successor COO, the company may adjust Dr. Gill's duties, with the assurance that his compensation will remain unchanged.
In the event of termination without cause or if Dr. Gill terminates his employment for any reason, he is entitled to severance benefits, including a lump sum payment, continuation of certain benefits, and acceleration of equity awards, subject to the conditions outlined in the agreement.
The amended employment terms aim to ensure a smooth leadership transition and are contingent upon the execution of a separation agreement and release of claims in favor of Fabrinet. The details of the amended offer letter are available as an exhibit to the Form 8-K filed by the company.
This announcement is based on information provided in the SEC filing by Fabrinet and does not include any speculative or subjective assessment.
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