UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) February 18, 2005
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BRIGHTPOINT, INC.
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(Exact Name of Registrant as Specified in Its Charter)
Indiana
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(State or Other Jurisdiction of Incorporation)
0-23494 35-1778566
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(Commission File Number) (IRS Employer Identification No.)
501 Airtech Parkway, Plainfield, Indiana 46168
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(Address of Principal Executive Offices) (Zip Code)
(317) 707-2355
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(Registrant's Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On February 18, 2005 the Compensation and Human Resources Committee (the
"Committee") of the Board of Directors of Brightpoint, Inc. (the "Company"),
took the following actions regarding its executive officers', including its
Chief Executive Officer's, compensation for fiscal 2004 and 2005:
A. Award of 2004 Bonuses
Bonuses for the second half ("Unit 2") of 2004 for the Company's executive
officers, including the Chief Executive Officer, were awarded, in part, based on
the Company achieving certain predetermined profitability targets and metrics
for Unit 2 and the full year established by the Committee earlier in the year
relating to (i) income from continuing operations, (ii) return on invested
capital, and (iii) certain strategic objectives. In addition, the Committee
awarded to the executive officers, including the Chief Executive Officer,
additional ("Discretionary") bonuses based on the Company's performance. The
following table demonstrates the Unit 2 and Discretionary bonuses that were
granted, as well as each individual's total bonus for 2004:
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EXECUTIVE OFFICER Unit 2 Discretionary Total Bonus for Fiscal 2004(1)
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Robert J. Laikin, Chairman of the Board $268,000 $170,000 $ 672,500
and Chief Executive Officer
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J. Mark Howell, President, Brightpoint, $ 82,000 $ 75,000 $ 228,750
Inc. and Brightpoint North America
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Frank Terence, Executive Vice President, $ 82,000 $ 50,000 $ 203,750
Chief Financial Officer and Treasurer
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Steven E. Fivel, Executive Vice $ 67,000 $ 45,000 $ 170,625
President, General Counsel and Secretary
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Lisa M. Kelley, Senior Vice President, $ 41,800 $ 65,000 $ 143,375
Chief Accounting Officer and Controller
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(1) The total bonus figure includes amounts received by the executive officers
with respect to the first half of 2004 (Unit 1).
B. Approval of Salary Increases for 2005.
The Committee approved the following Base Salary increases for the fiscal year
ending December 31, 2005, effective as of January 1, 2005:
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EXECUTIVE OFFICER NEW BASE SALARY FOR FISCAL 2005
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Robert J. Laikin, Chairman of the Board and Chief $705,000
Executive Officer
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Frank Terence, Executive Vice President, Chief Financial $410,000
Officer and Treasurer
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Steven E. Fivel, Executive Vice President, General Counsel $350,000
and Secretary
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J. Mark Howell, President, Brightpoint, Inc. and $420,000
Brightpoint North America
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Lisa M. Kelley, Senior Vice President, Chief Accounting $225,000
Officer and Controller
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C. Executive Equity Program.
In connection with its administration of the Company's 2004 Long-Term Incentive
Plan (the "Plan"), and in furtherance of the goals of the Plan, the Committee
adopted a program (the "Executive Equity Program") pursuant to which the
Company's executive officers, including its Chief Executive Officer, were
granted options and other stock based awards in the form of restricted stock
units ("RSUs") under, and in accordance with, the Plan. The number of options
and RSUs granted to each executive officer was based on a target percentage of
that executive's base salary, as follows:
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Position Target Equity Award (Up to % of Base Salary)
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Chief Executive Officer 125%
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Chief Financial Officer 100%
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General Counsel 100%
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President -- Americas 100%
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Chief Accounting Officer 50%
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The Plan grants made pursuant to the Executive Equity Program are subject to
forfeiture, in whole or in part, prior to the first anniversary of the grant if
the Company does not achieve certain performance goals weighted as follows: (i)
income from continuing operations (up to 50%), (ii) return on invested capital
(up to 20%) and (iii) strategic milestones (up to 30%). If any or all of the
performance goals are not achieved, then the corresponding percentage of the
options and RSUs granted would be forfeited. Those options and RSUs no longer
subject to forfeiture vest in three
equal annual installments beginning with the first anniversary of the grant,
subject to, and in accordance with the Plan and the option and RSU agreements
entered into between the Company and the grantee.
The following is a list of the options and other stock based awards in the form
of RSUs the Committee awarded to the Company's executive officers, including its
Chief Executive Officer under the Plan in connection with the Executive Equity
Program:
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EXECUTIVE OFFICER OPTIONS RSUs
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Robert J. Laikin, Chairman of the 51,300 18,700
Board and Chief Executive Officer
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Frank Terence, Chief Financial Officer 25,100 9,200
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Steven E. Fivel, Executive Vice 21,500 8,200
President, General Counsel and
Secretary
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J. Mark Howell, President, 25,700 9,300
Brightpoint, Inc. and Brightpoint
North America
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Lisa Kelley, Senior Vice President, 6,900 2,600
Chief Accounting Officer and Controller
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The Committee granted certain officers of the Company the authority to execute
option and RSU agreements in accordance with the terms of the Plan in connection
with each of the grants above. A form of the executive option agreement is
annexed hereto as Exhibit 10.1, and incorporated herein by reference. A form of
the executive RSU agreement is annexed hereto as Exhibit 10.2, and incorporated
herein by reference.
D. Approval of the 2005 Bonus Program
The Committee also established a 2005 bonus program for the Company's executive
officers, including its Chief Executive Officer, which is based upon certain
pre-established targets for: (i) income from continuing operations (up to 50%),
(ii) return on investment capital (up to 20%), and (iii) certain strategic
objectives approved by the Committee (up to 30%). If all of these targets are
reached, Mr. Laikin, the Company's Chief Executive Officer, will receive a cash
bonus equal to 100% of his base salary and each of the other executive officers
will receive a cash bonus equal to 50% of their respective base salaries as a
bonus. If only certain of the targets are reached then the executive officers,
including the Chief Executive Officer, would be entitled to receive the
corresponding percentage of their potential bonus under the program. The
Committee retains discretion to increase an award based on individual and
Company performance.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
10.1 Form of Executive Option Agreement with forfeiture provision
10.2 Form of Executive Restricted Stock Unit Agreement with
forfeiture provision
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BRIGHTPOINT, Inc.
(Registrant)
By: /s/ Steven E. Fivel
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Steven E. Fivel
Executive Vice President and General Counsel
Date: February 25, 2005