Key Tronic (KTCC) updates 2027 pay plans and RSU awards
Rhea-AI Filing Summary
Key Tronic Corporation (KTCC) reported Board actions updating executive and director compensation plans for fiscal 2027 and for the 2027–2029 long-term period. For the 2027 Incentive Compensation Plan, payouts depend on achieving minimum profit goals, with three performance tiers and a bonus pool of 35% of profit above the overachievement level.
For fiscal 2027, potential ICP payments for President and CEO Brett R. Larsen range from 10% to 150% of base salary; for CFO Anthony G. Voorhees and EVP Philip S. Hochberg, from 7% to 105%. Participants must be employed at payment time. The Board also granted RSU awards under the 2024 Incentive Plan: 67,023 RSUs to Mr. Larsen, 36,192 RSUs to Mr. Voorhees, and 33,512 RSUs to Mr. Hochberg, each vesting over three years with specified time-based and EBITDA-based performance vesting splits, plus 10,724 RSUs to each non-employee director vesting after one year.
For fiscal years 2027–2029, long-term incentives are tied to sales growth versus the industry and return on invested capital. If expected targets are met, cash awards after fiscal 2029 are $400,000 for Mr. Larsen, $190,000 for Mr. Voorhees, $150,000 for Mr. Hochberg, and $35,000 for each non-employee director, with actual payouts ranging from $0 to 150% above target.
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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, or exhibit attachments filed with this report.
Key Figures
Overachievement bonus pool percentage: 35% of profit goal performance achieved in excess of overachievement level
CEO ICP payout range: 10%–150% of base salary
CFO and EVP ICP payout range: 7%–105% of base salary
+5 more
8 metrics
Overachievement bonus pool percentage
35% of profit goal performance achieved in excess of overachievement level
Applies to fiscal year 2027 Incentive Compensation Plan
CEO ICP payout range
10%–150% of base salary
Potential 2027 ICP payment range for Brett R. Larsen
CFO and EVP ICP payout range
7%–105% of base salary
Potential 2027 ICP payment range for Anthony G. Voorhees and Philip S. Hochberg
RSUs granted to CEO
67,023 RSUs
Granted August 20, 2026 under the 2024 Incentive Plan
RSUs granted to CFO
36,192 RSUs
Granted August 20, 2026 under the 2024 Incentive Plan
RSUs granted to EVP Hochberg
33,512 RSUs
Granted August 20, 2026 under the 2024 Incentive Plan
Long-term target award for CEO
$400,000
Cash payment after fiscal 2029 if 2027–2029 targets are achieved
Long-term target award for non-employee directors
$35,000
Cash payment after fiscal 2029 if 2027–2029 targets are achieved
Key Terms
Incentive Compensation Plan, restricted stock unit, EBITDA, return on invested capital, +1 more
5 terms
Incentive Compensation Plan financial
"established the performance goals and target payment percentages for each participant in the incentive compensation plan"
An incentive compensation plan is a formal program that rewards employees and executives with bonuses, stock, or other payments tied to specific performance goals—such as revenue, profit, productivity, or long‑term share price. Investors watch these plans because they shape how leaders make decisions and take risks; like paying a coach by wins rather than effort, well‑designed plans can drive sustainable growth while poor designs can encourage short‑term behaviors that harm shareholder value.
restricted stock unit financial
"granted restricted stock unit (“RSU”) awards under the Company’s 2024 Incentive Plan"
A restricted stock unit is a promise from a company to give an employee shares of stock after certain conditions are met, like staying with the company for a set amount of time. It’s like earning a bonus that turns into company stock once you’ve proven your commitment, making it a way to motivate and reward employees.
EBITDA financial
"subject to performance-based vesting only to the extent the Company’s annual EBITDA in such year meets"
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.
return on invested capital financial
"based on a combination of sales growth targets compared to the industry and return on invested capital targets"
A percentage that shows how effectively a company turns the money invested in its business—both borrowed funds and shareholders’ equity—into operating profit after taxes. It tells investors whether a company earns more from its core operations than it costs to fund those operations; think of it like the annual return you’d expect from renovating a rental property—higher percentages mean the company uses capital more efficiently and is more likely to create value for shareholders.
long term incentive plan financial
"established long term incentive plan performance measures for the three fiscal year period 2027 through 2029"
A long term incentive plan is a company program that awards executives and key employees bonuses—often in stock, options, or cash—only if the business meets multi-year performance goals. It links management pay to company results—like tying a coach’s bonus to a team’s multi-season record—so investors monitor it for how leaders are motivated, potential share dilution, and signals about the company’s long-term priorities.
FAQ
What changes did KTCC make to its 2027 Incentive Compensation Plan?
Key Tronic set 2027 ICP payouts based on three profit performance levels with a minimum profit threshold. CEO Brett Larsen’s potential payout ranges from 10% to 150% of base salary; CFO Anthony Voorhees and EVP Philip Hochberg can earn 7% to 105%, contingent on results and continued employment.
How does the overachievement bonus pool work for KTCC’s 2027 ICP?
If profit exceeds the overachievement level, participants share a bonus pool equal to 35% of profit achieved above that overachievement level. This pool is in addition to payouts tied to the three profit performance tiers, and payments are made after fiscal 2027 ends.
What RSU awards did KTCC grant to executives on August 20, 2026?
On August 20, 2026, Key Tronic granted 67,023 RSUs to CEO Brett Larsen, 36,192 RSUs to CFO Anthony Voorhees, and 33,512 RSUs to EVP Philip Hochberg. These vest in equal annual installments over three years, with portions subject to time-based and EBITDA-based performance vesting.
What RSUs did KTCC’s non-employee directors receive?
Each non-employee director received an award of 10,724 RSUs under the 2024 Incentive Plan. These RSUs vest on the first anniversary of the grant date, providing a one-year vesting schedule aligned with director service.
How is KTCC’s 2027–2029 long-term incentive plan structured?
For fiscal years 2027–2029, long-term incentives are based on sales growth targets versus the industry and return on invested capital. If expected target performance is achieved, cash awards after fiscal 2029 are $400,000 for the CEO, $190,000 for the CFO, and $150,000 for the EVP.
What are the potential long-term cash awards for KTCC non-employee directors?
For the 2027–2029 performance period, each non-employee director may receive $35,000 in cash after fiscal 2029 if expected target performance measures are achieved. Actual payouts can range from $0 to 150% above these target amounts based on Company performance.
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