This excerpt taken from the MOLX DEF 14A filed Sep 10, 2007.
The following table provides information on the estimated possible payouts under the merit bonus arrangements for fiscal year 2007, based on certain assumptions about the achievement of performance objectives for Molex and the individual Named Executive Officer at various levels. Since Molexs operating performance bonus thresholds were not met in fiscal year 2007, the Named Executive Officers did not receive a cash merit bonus.
The table also provides information on stock awards and stock options to acquire shares of Molex Class A Common Stock granted in fiscal year 2007 to each of the Named Executive Officers. There can be no assurance that the amounts in the Grant Date Fair Value of Stock and Option Awards column will ever be realized.
2000 Molex Long-Term Stock Plan
Stock awards and stock options are granted to executive officers under the 2000 Molex Long-Term Stock Plan. Stock awards vest ratably over four years beginning on the first anniversary of the grant date. There is no dividend or other ownership rights in the shares of Class A Common Stock subject to the award unless and until the award vests and the shares are issued. Stock options are granted at 100% of the closing price of the stock on the grant date and vest ratably over four years beginning on the first anniversary of the grant date and expire on the fifth anniversary of the grant date. In 2006, the Board adopted equity grant procedures that provide that the annual equity award to executive officers will be granted each year effective August 15th or the next trading day if markets are closed on August 15th.
The vesting of stock awards and stock options is accelerated upon the executives death, disability or qualified retirement. A qualified retirement is one where the executive has reached age 59 1/2, was employed at least 15 consecutive years, and the Compensation Committee approves the accelerated vesting. Once accelerated, stock awards are distributed and stock options are immediately exercisable and expire at the earliest of the date of expiration set when the option was granted or six years after death, disability or qualified retirement. Stock awards and stock options terminate immediately upon the executives voluntary or involuntary termination of employment (other than death, disability or qualified retirement). Stock awards and stock options are not transferable.