Form 4: Flex Ltd. Director Charles K. Stevens III Awarded Restricted Share Units

Director Charles K. Stevens III receives 6,889 restricted share units in Flex Ltd., with adjustments made due to the Nextracker spin-off.

Summary

• Charles K. Stevens III, a director at Flex Ltd., was awarded 6,889 restricted share units (RSUs) on August 8, 2024.
• These RSUs were granted as part of the annual equity award for Non-Employee Directors under the company's 2017 Equity Incentive Plan.
• Each RSU represents a contingent right to receive one unrestricted share of Flex Ltd.
• The RSUs will vest in full immediately prior to the date of Flex Ltd.'s 2025 annual general meeting.
• The number of RSUs was adjusted to include an additional 2,183 RSUs due to the spin-off of Nextracker Inc. to preserve their economic value post-Spin-Off.
• This adjustment is exempt from Section 16 of the Securities Exchange Act of 1934.
• Stevens also has a power of attorney designating Paul R. Lundstrom, Daniel Wendler, Scott Offer, Kristine Murphy, Joy Bartolome and Donald T. Rozak, Jr. to handle SEC filings on his behalf.

Sentiment

Score: 7

Explanation: The document reflects a standard director compensation practice, indicating stability and alignment of interests. The adjustment for the Nextracker spin-off is a neutral event.

Positives

• The award of RSUs aligns the director's interests with those of the shareholders.
• The adjustment of RSUs due to the Nextracker spin-off ensures that the economic value of the award is maintained.

Future Outlook

The RSUs will vest in full immediately prior to the date of Issuer's 2025 annual general meeting.

Industry Context

Equity compensation is a common practice for directors of publicly traded companies to align their interests with shareholders and incentivize performance.

Comparison to Industry Standards

• Director compensation packages, including equity awards, are common across the technology and manufacturing sectors.
• Companies like Jabil and Sanmina also utilize equity-based compensation for their board members.
• The specific number of RSUs awarded is likely determined by factors such as company size, performance, and industry benchmarks.

Stakeholder Impact

• The RSU award aligns the director's interests with those of the shareholders, potentially leading to better decision-making.
• Employees may view the equity award as a positive sign of the company's commitment to its leadership.

Next Steps

• The RSUs will vest prior to the 2025 annual general meeting.

Key Dates