Coherent Announces New Employee Inducement Grants Under NYSE Rule 303A.08

Rhea-AI Summary

Coherent Corp. (NYSE: COHR), a global leader in materials, networking, and lasers, has announced new employee inducement grants for its recently appointed Chief Financial Officer and Treasurer, Sherri R. Luther. The awards, effective from her start date on October 11, 2024, include:

1. 15,902 Restricted Stock Units (RSUs) vesting in three equal installments over three years.

2. 63,154 RSUs vesting in two equal installments over two years.

3. 118,583 Performance Stock Units (PSUs) vesting based on the company's total shareholder return (TSR) relative to the S&P Composite 1500—Electronic Equipment, Instruments & Components index from the grant date to June 30, 2027.

These grants were made as a material inducement to Ms. Luther joining the company, in accordance with NYSE Listed Company Manual Rule 303A.08.

Positive

• Appointment of a new Chief Financial Officer and Treasurer
• Implementation of performance-based incentives for key executive
• Alignment of executive compensation with shareholder returns through TSR-based PSUs

Negative

• Potential dilution of existing shareholders due to new stock grants

News Market Reaction

+0.98%

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+0.98% News Effect

On the day this news was published, COHR gained 0.98%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

PITTSBURGH, Oct. 16, 2024 (GLOBE NEWSWIRE) -- Coherent Corp. (the “Company”) (NYSE: COHR), a global leader in materials, networking, and lasers, today announced that the Company made awards of restricted stock units (“RSUs”) and performance stock units (“PSUs”) to its new Chief Financial Officer and Treasurer, Sherri R. Luther, effective on her start date, October 11, 2024. The awards were made pursuant to the Company’s previously announced offer letter agreement with Ms. Luther, and as a material inducement to her joining the Company as its Chief Financial Officer and Treasurer.

The material terms of the awards are as follows:

• The first award of RSUs covers 15,902 shares of the Company’s common stock and becomes vested in three substantially equal installments on the first three anniversaries of the grant date subject to Ms. Luther’s continued employment through each vesting date, except as noted below.
  
• The second award of RSUs covers 63,154 shares of the Company’s common stock and becomes vested in two substantially equal installments on the first two anniversaries of the grant date subject to Ms. Luther’s continued employment through each vesting date, except as noted below.
  
• The PSUs cover a target of 118,583 shares of the Company’s common stock and become vested 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. Performance below the 25^th percentile results in no payout; performance at the 25^th percentile (threshold) results in a 50% payout; performance at the 50^th percentile (target) results in a 100% payout; and performance at or above the 75^th percentile (max) results in a 200% payout. However, the payout for performance above target is capped at 100% if the Company’s absolute TSR for the performance period is negative. Ms. Luther also must remain employed with the Company through the end of the performance period, except as noted below.
  
• The RSUs and PSUs include vesting treatment on termination of employment or “change in control” (as defined in the Company’s Omnibus Incentive Plan) consistent with the Company’s standard terms for executive officers, including in accordance with the terms of the Company’s Revised Executive Severance Plan and the standard form of Participation Agreement executed by Ms. Luther under the Revised Executive Severance Plan.

Each award was granted as a material inducement to employment in accordance with the NYSE Listed Company Manual Rule 303A.08.

About Coherent

Coherent empowers market innovators to define the future through breakthrough technologies, from materials to systems. We deliver innovations that resonate with our customers in diversified applications for the industrial, communications, electronics, and instrumentation markets. Coherent has research and development, manufacturing, sales, service, and distribution facilities worldwide. For more information, please visit us at coherent.com.

Media Contact:

Amy Wilson
Corporate Communications & Investor Relations
corporate.communications@coherent.com

FAQ

What stock grants did Coherent (COHR) award to its new CFO?

Coherent awarded its new CFO, Sherri R. Luther, 15,902 RSUs vesting over three years, 63,154 RSUs vesting over two years, and 118,583 PSUs vesting based on total shareholder return performance through June 30, 2027.

When did Sherri R. Luther start as Coherent's (COHR) CFO?

Sherri R. Luther started as Coherent's Chief Financial Officer and Treasurer on October 11, 2024.

How are the Performance Stock Units (PSUs) for Coherent's (COHR) new CFO structured?

The PSUs vest based on Coherent's total shareholder return relative to the S&P Composite 1500—Electronic Equipment, Instruments & Components index from the grant date to June 30, 2027, with payouts ranging from 0% to 200% depending on performance.

Under what NYSE rule did Coherent (COHR) grant these inducement awards?

Coherent granted these inducement awards in accordance with NYSE Listed Company Manual Rule 303A.08.