Fabrinet (NYSE: FN) Restructures Agreement with Harpal Gill

Fabrinet (NYSE: FN), a leading provider of advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services, has recently implemented changes to its agreement with Harpal Gill, the President and Chief Operating Officer (COO) of Fabrinet USA, Inc. This amendment, effective as of December 19, 2024, outlines key modifications to his roles, responsibilities, compensation, and benefits within the organization.

Under the revised terms, Harpal Gill will continue in his capacity as the President and COO, reporting directly to Seamus Grady, the Chief Executive Officer of Fabrinet. Gill’s core duties will revolve around enhancing manufacturing and operational excellence, with a specific focus on recruiting and training a successor to the COO role by the Successor Deadline Date of December 31, 2027. He is expected to dedicate the majority of his time and efforts to fulfilling his responsibilities effectively.

In terms of compensation, Harpal Gill’s annual base salary has been set at $1,100,000, payable semi-monthly subject to U.S. tax withholdings. Additionally, he is eligible for a target bonus of at least 95% of his base salary under Fabrinet’s Executive Incentive Plan. Alongside competitive financial rewards, Gill will receive various benefits, including health care coverage, paid time off, a 401(k) plan, and a car allowance of $1,000 per month.

In the event of Harpal Gill’s employment termination, the agreement stipulates provisions for Severance Benefits. These benefits include lump-sum payments based on his salary, unpaid bonus amounts, and coverage for COBRA health plans. Furthermore, any outstanding equity awards or restricted share unit awards will be handled according to the terms outlined in the agreement.

The new agreement also specifies conditions for termination due to death or disability, outlining the entitlements in such circumstances. Furthermore, it addresses the need for a general separation agreement and release of claims to access the specified Severance Benefits.

Overall, the restructured agreement between Fabrinet and Harpal Gill emphasizes clear guidelines regarding roles, responsibilities, compensation, benefits, and termination conditions, ensuring a transparent and mutually beneficial working relationship.

Investors and stakeholders will be closely monitoring the implementation of these revised terms within Fabrinet as the organization moves forward with its operational and strategic objectives.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Fabrinet’s 8K filing here.

About Fabrinet

Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, and Europe. The company offers a range of advanced optical and electro-mechanical capabilities in the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, advanced packaging, integration, final assembly, and testing.