GSI Technology (NASDAQ: GSIT) adopts 2027 performance-linked executive bonus plan
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
GSI Technology, Inc. has adopted a new 2027 Variable Compensation Plan for its executive officers and certain key employees. The plan provides cash bonus opportunities tied to company performance for the fiscal year ending March 31, 2027, focusing on SRAM net revenue and Associative Processing Unit (APU) net revenue and/or related research and development funding.
Under the plan, CEO Lee-Lean Shu has a target bonus of $275,000, while each other executive officer has a target bonus of $137,500. Actual payouts can reach up to 2x these target amounts if performance goals are exceeded. Awards vest over three years: 60% on the last business day of April 2027 and 20% on the last business day of April in each of the following two years, encouraging both performance and retention.
Positive
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Negative
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8-K Event Classification
2 items: 5.02, 9.01
2 items
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
CEO target bonus: $275,000
Other executives’ target bonus: $137,500
Maximum payout multiple: 2x target bonus
+3 more
6 metrics
CEO target bonus
$275,000
Target cash bonus for Lee-Lean Shu under 2027 Plan
Other executives’ target bonus
$137,500
Target cash bonus for each other executive officer
Maximum payout multiple
2x target bonus
If target performance goals are exceeded
Initial vesting portion
60%
Vests and is payable last business day of April 2027
Subsequent vesting portions
20% + 20%
Vests on last business day of April in following two years
Performance period end
March 31, 2027
Fiscal year end for 2027 Plan performance measurement
Key Terms
2027 Variable Compensation Plan, SRAM net revenue, Associative Processing Unit (APU), research and development funding, +1 more
5 terms
2027 Variable Compensation Plan financial
"adopted the Company's 2027 Variable Compensation Plan (the "2027 Plan")"
SRAM net revenue financial
"achievement of performance criteria based on SRAM net revenue and Associative Processing Unit"
Associative Processing Unit (APU) technical
"Associative Processing Unit (APU) net revenue and/or research and development funding"
An associative processing unit (APU) is a specialized chip designed to find and match patterns across large datasets by comparing entries in parallel rather than one-by-one, like spotting a familiar face in a crowd all at once. For investors, APUs matter because they can dramatically speed up tasks such as artificial intelligence, real-time analytics, or genome searches, which can lower operating costs, enable new products, and give companies a competitive edge in data-driven markets.
research and development funding financial
"research and development funding recorded as offset to research and development expense"
Inline XBRL technical
"Cover Page Interactive Data File (embedded within the Inline XBRL document)"
Inline XBRL is a file format for financial filings that embeds machine-readable data tags directly inside the human-readable report, so the same document can be read by people and parsed by software. For investors it makes extracting, comparing and verifying financial numbers faster and more reliable—like a grocery list where each item also has a barcode—reducing manual errors and speeding up analysis.
FAQ
What did GSI Technology (GSIT) announce in this 8-K filing?
GSI Technology adopted its 2027 Variable Compensation Plan for executives and key employees. The plan offers cash bonuses based on fiscal 2027 performance, primarily tied to SRAM and APU-related revenue metrics and research and development funding.
How are executive bonuses structured under GSI Technology’s 2027 Plan?
Each participant has a fixed target bonus, with payments adjusted by performance. CEO Lee-Lean Shu’s target is $275,000, while other executive officers each have a $137,500 target, subject to increases or decreases based on revenue-based performance criteria.
Which performance metrics drive payouts in GSI Technology’s 2027 Plan?
Payouts depend on achievement of performance criteria based on SRAM net revenue and APU net revenue and/or research and development funding recorded as an offset to research and development expense for APU products during fiscal year ending March 31, 2027.
Can bonuses under GSI Technology’s 2027 Plan exceed target amounts?
Yes. If target performance goals are exceeded, actual bonus awards under the 2027 Plan may be up to two times each participant’s target bonus. Awards also decrease if overall net revenue and APU net revenue targets are not reached.
How do bonuses vest under GSI Technology’s 2027 Variable Compensation Plan?
Bonus awards vest over three years, contingent on continued employment. Sixty percent becomes vested and payable on the last business day of April 2027, and twenty percent vests on the last business day of April in each of the next two years.
Who is eligible to participate in GSI Technology’s 2027 Plan?
All executive officers of GSI Technology are eligible to participate in the 2027 Plan. In addition, certain other non-executive officers and key employees may also participate, aligning broader leadership incentives with company performance.