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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SCHEDULE 14A
OF THE SECURITIES EXCHANGE ACT OF 1934
Filed by the Registrant þ
Filed by a Party other than the Registrant o
Check the appropriate box:
o | Preliminary Proxy Statement | |
o | Confidential, For Use of the Commission Only (as permitted by Rule 14a-6(e) (2) ) | |
x | Definitive Proxy Statement | |
o | Definitive Additional Materials | |
o | Soliciting Material Under Rule 14a-12 |
COHU, INC.
(Name of Registrant as Specified in Its Charter)
Payment of Filing Fee (Check the appropriate box) :
x | No fee required. | |
o | Fee computed on table below per Exchange Act Rules 14a-6(i) (1) and 0-11. |
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(2) | Aggregate number of securities to which transaction applies: | |
(3) | Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): | |
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o Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a) (2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the form or schedule and the date of its filing. |
(1) | Amount previously paid: | |
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Poway, California 92064-6817
To Be Held On May 8, 2007
1. | To elect two directors, each for a term of three years. | ||
2. | To ratify the appointment of Ernst & Young LLP as Cohu’s independent registered public accounting firm for 2007. | ||
3. | To act upon such other matters as may properly come before the meeting or any adjournment thereof. |
By Order of the Board of Directors, | ||
![]() | ||
Thomas L. Green | ||
Secretary |
April 2, 2007
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12367 Crosthwaite Circle
Poway, California 92064-6817
• | enter a new vote over the Internet, by telephone or by signing and returning another proxy card bearing a later date; | ||
• | provide written notice of the revocation to Cohu’s Secretary; or | ||
• | attend the Meeting and vote in person. |
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• | visiting our website at www.cohu.com; | ||
• | contacting our Investor Relations department at 858-848-8100; or | ||
• | viewing our Form 10-Q for the second quarter of 2007 on the SEC’s website at www.sec.gov. |
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Director | ||||||||||
Name | Age | Principal Occupation | Since | |||||||
James W. Barnes | 77 | Served as President and Chief Executive Officer of Cohu from 1983 until his retirement in March, 1996. | 1983 | |||||||
James A. Donahue | 58 | President and Chief Executive Officer of Cohu since June, 2000; President and Chief Operating Officer of Cohu from October, 1999 to June, 2000; President of Delta Design, Inc., a wholly owned subsidiary of Cohu, since May, 1983. Mr. Donahue is also a director of Standard Microsystems Corporation. | 1999 |
Director | ||||||||||
Name | Age | Principal Occupation | Since | |||||||
Robert L. Ciardella | 54 | Served as President of Asymtek (a subsidiary of Nordson Corporation) from 1983 until July, 2006. Asymtek designs, develops, manufactures and sells semiconductor and circuit board assembly equipment. | 2003 | |||||||
Charles A. Schwan | 67 | Chairman of the Board; Retired Chief Executive Officer of Cohu since June, 2000; Chairman and Chief Executive Officer of Cohu from July, 1999 to June, 2000; President and Chief Executive Officer of Cohu from March, 1996 to July, 1999; Executive Vice President and Chief Operating Officer of Cohu from September, 1995 to March, 1996; Vice President, Finance of Cohu from 1983 until September, 1995. | 1990 |
Director | ||||||||||
Name | Age | Principal Occupation | Since | |||||||
Harry L. Casari | 70 | Retired Partner, Ernst & Young LLP. Mr. Casari is also a director of Meade Instruments Corp., Orange 21 Inc. and Catcher Holdings, Inc. | 1995 | |||||||
Harold Harrigian | 72 | Retired Partner and Director of Corporate Finance, Crowell, Weedon & Co., a provider of financial services. Mr. Harrigian is also a former partner, Arthur Young & Company (predecessor of Ernst & Young LLP). | 1998 |
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• | all directors who serve on the Audit, Compensation and Nominating and Governance Committees are independent under applicable Nasdaq listing standards, Internal Revenue Code requirements and SEC rules, and | ||
• | all members of the Audit Committee meet the additional independence requirement that they do not directly or indirectly receive compensation from Cohu other than their compensation as directors. |
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Nominating and | ||||||||||||
Name of Director | Audit | Compensation | Governance | |||||||||
Independent Directors: | ||||||||||||
James W. Barnes | ||||||||||||
Harry L. Casari (1) | X | X | * | X | ||||||||
Robert L. Ciardella | X | X | X | * | ||||||||
Harold Harrigian (1) | X | * | X | X | ||||||||
Charles A. Schwan | ||||||||||||
Other Director: | ||||||||||||
James A. Donahue | ||||||||||||
Number of Meetings in 2006 | 6 | 12 | 6 |
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Cohu, Inc.
12367 Crosthwaite Circle
Poway, CA 92064-6817
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Annual Retainer: | ||||
Chairman of the Board | $ | 50,000 | ||
Other Directors | $ | 30,000 | ||
Annual Fees for Committee Chairs: | ||||
Audit Committee | $ | 7,500 | ||
Nominating and Governance Committee | $ | 7,500 | ||
Compensation Committee | $ | 7,500 | ||
Annual Fee for Committee members | $ | 3,500 |
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3,300 Restricted Stock Units (RSUs)
2,000 Restricted Stock Units (RSUs)
Change in | ||||||||||||||||||||||||||||
Pension | ||||||||||||||||||||||||||||
Fees | Non-Equity | Value and | ||||||||||||||||||||||||||
Earned | Incentive | Non-qualified | ||||||||||||||||||||||||||
or Paid | Stock | Option | Plan | Deferred | All Other | |||||||||||||||||||||||
in Cash | Awards | Awards | Compensation | Compensation | Compensation | |||||||||||||||||||||||
Name | ($) | ($) (1) | ($) (2) | ($) | Earnings ($) | ($) (3) | Total ($) | |||||||||||||||||||||
James W. Barnes | 30,000 | 11,842 | 12,386 | — | — | 12,555 | 66,783 | |||||||||||||||||||||
Harry L. Casari | 44,500 | 11,842 | 43,689 | — | — | — | 100,031 | |||||||||||||||||||||
Robert L. Ciardella | 44,500 | 11,842 | 87,184 | — | — | — | 143,526 | |||||||||||||||||||||
Harold Harrigian | 44,500 | 11,842 | 43,689 | — | — | — | 100,031 | |||||||||||||||||||||
Charles A. Schwan | 50,000 | 11,842 | 12,386 | — | — | 23,013 | 97,241 |
(1) | Amounts shown do not reflect compensation actually received by the directors. Instead, the amounts shown above are the compensation costs recognized by Cohu in fiscal 2006 for stock awards issued in the form of restricted stock units as determined under Statement of Financial Accounting Standards No. 123(R) (“FAS 123R”) and include amounts from awards granted in fiscal 2006. There were no stock awards in prior years. The assumptions used to calculate the value of the stock awards and the related compensation expense are set forth in Note 5 of the Notes to Consolidated Financial Statements included in Cohu’s Annual Report on Form 10-K for the year ended December 30, 2006 filed with the Securities and Exchange Commission. As of December 30, 2006 Messrs. Barnes, Casari, Ciardella, Harrigian and Schwan each had 2,000 RSU’s outstanding. | |
(2) | Amounts shown do not reflect compensation actually received by the directors. Instead, the amounts shown above are the compensation costs recognized by Cohu in fiscal 2006 for option awards as determined under FAS 123R and include amounts from awards granted in fiscal 2006 and prior years. The assumptions used to calculate the value of the option awards and the related compensation expense are set forth in Notes 11 and 5 of the Notes to Consolidated Financial Statements included in Cohu’s Annual Report on Form 10-K for the years ended December 31, 2004 and December 30, 2006, respectively, filed with the Securities and Exchange Commission. As of December 30, 2006 Messrs. Barnes, Casari, Ciardella, Harrigian and Schwan had options to purchase 5,000, 30,000, 35,000, 40,000 and 5,000 shares of common stock |
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outstanding, respectively. | ||
(3) | Amounts reflect payment of health insurance premiums and reimbursement of other medical costs not covered by health insurance. |
1. | Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; | ||
2. | Full, fair, accurate, timely and understandable disclosure in reports and documents that Cohu files with, or submits to, the SEC and in other public communications made by Cohu; | ||
3. | Compliance with applicable governmental laws, rules and regulations; | ||
4. | The prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and | ||
5. | Accountability for adherence to the Code. |
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Beneficially owned | Common stock | Percent | ||||||||||||||
Name and address of beneficial owner | common stock | equivalents (1) | Total | of class (2) | ||||||||||||
Franklin Resources, Inc. (3) | 1,855,000 | — | 1,855,000 | 8.16 | % | |||||||||||
One Franklin Parkway, San Mateo, CA 94403 | ||||||||||||||||
Nick Cedrone (4) | 1,286,138 | — | 1,286,138 | 5.66 | % | |||||||||||
One Monarch Drive, Littleton, MA 01460 | ||||||||||||||||
Barclays Global Investors Japan Limited (5) | 1,179,543 | — | 1,179,543 | 5.19 | % | |||||||||||
1-1-39 Hiroo Shibuya-Ku, | ||||||||||||||||
Tokyo 150-8402 Japan | ||||||||||||||||
Rutabaga Capital Management (6) | 1,149,382 | — | 1,149,382 | 5.06 | % | |||||||||||
64 Broad Street, Boston MA 02109 | ||||||||||||||||
John H. Allen | 18,528 | 182,501 | 201,029 | * | ||||||||||||
James W. Barnes | 290,819 | — | 290,819 | 1.28 | % | |||||||||||
Harry L. Casari | 1,600 | 22,500 | 24,100 | * | ||||||||||||
Robert L. Ciardella | — | 22,500 | 22,500 | * | ||||||||||||
James A. Donahue | 68,600 | 417,501 | 486,101 | 2.10 | % | |||||||||||
Harold Harrigian | 2,600 | 32,500 | 35,100 | * | ||||||||||||
Thomas G. Lightner | 1,702 | 55,001 | 56,703 | * | ||||||||||||
James G. McFarlane | 18,168 | 108,752 | 126,920 | * | ||||||||||||
Colin P. Scholefield | 3 | 97,001 | 97,004 | * | ||||||||||||
Charles A. Schwan | 33,584 | — | 33,584 | * | ||||||||||||
All directors and executive officers as a group (10 persons) | 435,604 | 938,256 | 1,373,860 | 5.81 | % |
* | Less than 1% | |
(1) | Shares issuable upon exercise of stock options held by directors and executive officers that were exercisable on or within 60 days of February 22, 2007. | |
(2) | Computed on the basis of 22,719,517 shares of common stock outstanding as of February 22, 2007, plus, with respect to each person holding options to purchase common stock exercisable within 60 days of February 22, 2007, the number of shares of common stock issuable upon exercise thereof. | |
(3) | According to Schedule 13G filed with the Securities and Exchange Commission on February 5, 2007, Franklin Resources, Inc. reported that Franklin Advisory Services, LLC had sole voting and dispositive power with respect to 1,837,500 and 1,855,000 shares, respectively, and no shared voting or dispositive power with respect to these shares. | |
(4) | According to Schedule 13G filed with the Securities and Exchange Commission on January 25, 2007. | |
(5) | According to Schedule 13G filed with the Securities and Exchange Commission on January 23, 2007, Barclays Global Investors Japan Limited reported that its affiliated companies collectively had sole voting and dispositive power with respect to 1,118,671 and 1,179,543 shares, respectively, and no shared voting or dispositive power with respect to these shares. | |
(6) | According to Schedule 13G filed with the Securities and Exchange Commission on January 24, 2007, Rutabaga Capital Management reported that it had sole voting and dispositive power with respect to 852,733 and 1,149,382 shares, respectively, and shared voting power with respect to 296,649 shares. |
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Harold Harrigian (Chairman) | Harry L Casari | Robert L. Ciardella |
2006 | 2005 | |||||||
Audit Fees(1) | $ | 649 | $ | 603 | ||||
Audit-Related Fees(2) | 19 | 10 | ||||||
Tax Fees: | ||||||||
Tax Compliance(3) | 59 | 72 | ||||||
Tax Planning and Advice | 13 | — | ||||||
72 | 72 | |||||||
All Other Fees | — | — | ||||||
Total | $ | 740 | $ | 685 | ||||
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(1) | Audit fees represent fees for professional services provided in connection with the audit of Cohu’s financial statements and review of Cohu’s quarterly financial statements and audit services provided in connection with other statutory or regulatory filings. In addition, audit fees include those fees related to Ernst & Young LLP’s audit of the effectiveness of Cohu’s internal controls over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act of 2002. | |
(2) | Audit-related fees consisted primarily of accounting consultation services related to business acquisitions and divestitures and other attestation services. | |
(3) | Tax compliance fees consisted primarily of assistance with (i) preparation of Cohu’s federal, state and foreign tax returns; (ii) tax return examinations and (iii) expatriate tax return filings. |
Compensation Discussion and Analysis
• | Pay compensation that is competitive with the practices of other leading high technology companies; and | ||
• | Pay for performance by: |
- | setting challenging performance goals for our officers and providing a short-term incentive through an incentive compensation plan that is based upon achievement of these goals; and | ||
- | providing long-term, significant incentives in the form of restricted stock units (“RSUs”) and/or stock options, in order to retain those individuals with the leadership abilities necessary for increasing long-term stockholder value while aligning the interests of our officers with those of our stockholders. |
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Asyst Technologies | GSI Group | |
ATMI | LTX | |
Axcelis Technologies | Mattson Technology | |
Credence Systems | Photronics | |
Cree | Semitool | |
Cymer | Ultra Clean Holdings | |
Electro Scientific Industries | Veeco Instruments | |
FormFactor |
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Percentage of Salary | ||||||||
Named Executive Officer | Amount | Earned in Fiscal 2006 | ||||||
Mr. Donahue | $ | 531,050 | 116 | % | ||||
Mr. Allen | $ | 243,973 | 87 | % | ||||
Mr. Lightner | $ | 115,277 | 61 | % | ||||
Mr. McFarlane | $ | 123,727 | 61 | % | ||||
Mr. Scholefield | $ | 129,913 | 61 | % |
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Harry L. Casari (Chairman) | Robert L. Ciardella | Harold Harrigian |
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Change in | ||||||||||||||||||||||||||||||||||||
Pension | ||||||||||||||||||||||||||||||||||||
Value and | ||||||||||||||||||||||||||||||||||||
Non-Equity | Nonqualified | |||||||||||||||||||||||||||||||||||
Incentive | Deferred | |||||||||||||||||||||||||||||||||||
Stock | Option | Plan | Compensation | All Other | ||||||||||||||||||||||||||||||||
Salary | Bonus | Awards | Awards | Compensation | Earnings | Compensation | Total | |||||||||||||||||||||||||||||
Name and Principal Position | Year | ($) | ($)(1) | ($) (2) | ($)(3) | ($)(4) | ($) (5) | ($) (6) (7) | ($) | |||||||||||||||||||||||||||
James A. Donahue | 2006 | 457,010 | — | 30,843 | 516,969 | 531,050 | — | 45,495 | 1,581,367 | |||||||||||||||||||||||||||
President and Chief Executive Officer | ||||||||||||||||||||||||||||||||||||
John H. Allen | 2006 | 279,929 | — | 15,008 | 228,565 | 243,973 | — | 20,645 | 788,120 | |||||||||||||||||||||||||||
Vice President, Finance and Chief Financial Officer | ||||||||||||||||||||||||||||||||||||
Thomas G. Lightner | 2006 | 190,086 | — | 7,685 | 100,375 | 115,277 | — | 29,321 | 442,744 | |||||||||||||||||||||||||||
Vice President, Manufacturing Delta Design | ||||||||||||||||||||||||||||||||||||
James G. McFarlane | 2006 | 204,238 | — | 7,685 | 86,579 | 123,727 | — | 79,465 | 501,694 | |||||||||||||||||||||||||||
Senior Vice President Delta Design | ||||||||||||||||||||||||||||||||||||
Colin P. Scholefield | 2006 | 214,450 | — | 7,685 | 110,857 | 129,913 | — | 14,996 | 477,901 | |||||||||||||||||||||||||||
Senior Vice President, Sales and Service Delta Design |
(1) | The annual cash incentive paid to Cohu’s named executive officers is included in the column “Non-Equity Incentive Plan Compensation”. | |
(2) | Amounts shown do not reflect compensation actually received by the named executive officers. Instead, the amounts shown above are the compensation costs recognized by Cohu in fiscal 2006 for stock awards issued in the form of restricted stock units as determined under FAS 123R and include amounts from awards granted in fiscal 2006. There were no stock awards in prior years. The assumptions used to calculate the value of the stock awards and the related compensation expense are set forth in Note 5 of the Notes to Consolidated Financial Statements included in Cohu’s Annual Report on Form 10-K for the year ended December 30, 2006 filed with the Securities and Exchange Commission. | |
(3) | Amounts shown do not reflect compensation actually received by the named executive officers. Instead, the amounts shown above are the compensation costs recognized by Cohu in fiscal 2006 for option awards as determined under FAS 123R and include amounts from awards granted in fiscal 2006 and prior years. The assumptions used to calculate the value of the option awards and the related compensation expense are set forth in Notes 11 and 5 of the Notes to Consolidated Financial Statements included in Cohu’s Annual Report on Form 10-K for the years ended December 31, 2004 and December 30, 2006, respectively, filed with the Securities and Exchange Commission. | |
(4) | Amounts consist of performance-based incentive cash bonuses received by the named executive officers earned for services rendered in fiscal 2006. Such amounts were paid under the Cohu 2005 Equity Incentive Plan. | |
(5) | There are no nonqualified deferred compensation earnings reflected in this column as no named executive officer received above-market or preferential earnings on such compensation during 2006. For further information on 2006 activity in deferred compensation accounts for named executive officers see “2006 Nonqualified Deferred Compensation” included elsewhere herein. | |
(6) | The amounts shown in this column reflect the following for each named executive officer: |
(a) | Cohu’s matching contributions in fiscal 2006 under the Cohu tax-qualified 401(k) plan (which is more fully described elsewhere herein under the heading “Retirement Benefits Under the 401(k) Plan, Executive Perquisites and Generally Available Benefits” | ||
(b) | The value attributable to life insurance benefits provided by Cohu (such amount is taxable to the recipient) | ||
(c) | Monthly automobile expense allowance paid by Cohu (such amount is taxable to the recipient) | ||
(d) | Payment of medical insurance premiums and non covered medical expenses for Mr. Donahue and non covered medical expenses for Mr. Allen | ||
(e) | Cohu’s matching contributions made in fiscal 2006 for deferred compensation contributions made by messrs. Allen and Donahue (which is more fully described elsewhere herein under the heading “ Deferred Compensation Plan”) | ||
(f) | Payment of certain relocation benefits to Mr. Lightner, including estimated tax gross-up, for a temporary foreign assignment consisting of moving expenses, living allowances and apartment rental. |
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(7) | In addition to the items noted in footnote (6) above, the amount in this column for Mr. McFarlane includes certain relocation benefits, including estimated tax gross-up, for a foreign assignment. These benefits included $30,000 paid for a living expense allowance. Other benefits, none of which exceed the greater of $25,000 or 10% of the total amount of perquisites and personal benefits, consisted of apartment rental and use of a company automobile. |
All Other | All Other | |||||||||||||||||||||||||||||||||||||||||||
Estimated Future | Estimated Future | Stock | Option | Exercise | Grant | |||||||||||||||||||||||||||||||||||||||
Payouts Under Non- | Payouts Under | Awards: | Awards: | or Base | Date Fair | |||||||||||||||||||||||||||||||||||||||
Equity Incentive | Equity Incentive | Number of | Number of | Price | Value of | |||||||||||||||||||||||||||||||||||||||
Plan Awards (1) | Plan Awards (2) | Shares of | Securities | of | Stock and | |||||||||||||||||||||||||||||||||||||||
Thres- | Maxi- | Thres- | Maxi- | Stock or | Underlying | Option | Option | |||||||||||||||||||||||||||||||||||||
Grant | hold | Target | mum | hold | Target | mum | Units | Options | Awards | Awards | ||||||||||||||||||||||||||||||||||
Name | Date | ($) | ($) | ($) | ($) | ($) | ($) | (#) (3) | (#) (4) | ($/sh) (5) | ($) (6) | |||||||||||||||||||||||||||||||||
James A. Donahue | 8/17/2006 | — | — | — | — | — | — | 21,750 | 62,750 | 16.40 | 757,624 | |||||||||||||||||||||||||||||||||
N/A | 0 | 462,000 | 924,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
John H. Allen | 8/17/2006 | — | — | — | — | — | — | 10,583 | 29,250 | 16.40 | 360,050 | |||||||||||||||||||||||||||||||||
N/A | 0 | 212,250 | 424,500 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Thomas G. Lightner | 8/17/2006 | — | — | — | — | — | — | 5,417 | 13,750 | 16.40 | 176,111 | |||||||||||||||||||||||||||||||||
N/A | 0 | 92,500 | 185,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
James G. McFarlane | 8/17/2006 | — | — | — | — | — | �� | — | 5,417 | 13,750 | 16.40 | 176,111 | ||||||||||||||||||||||||||||||||
N/A | 0 | 100,000 | 200,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Colin P. Scholefield | 8/17/2006 | — | — | — | — | — | — | 5,417 | 13,750 | 16.40 | 176,111 | |||||||||||||||||||||||||||||||||
N/A | 0 | 105,000 | 210,000 | — | — | — | — | — | — | — |
(1) | The threshold, target and maximum amounts to be paid in fiscal 2006 are based on the achievement of certain performance goals and measures established annually by the Compensation Committee in accordance with the Cohu 2005 Equity Incentive Plan. The threshold amount, which is 35% of the target amount, is the amount to be paid if a prescribed minimum level of sales and pretax income were achieved in fiscal 2006. No bonus related to these factors would be paid if the threshold amount of sales and pretax income were not achieved and, accordingly, the threshold amount disclosed above is 0. The maximum amount is 200% of the target amount. These amounts are based on the individual’s 2006 salary and position. | |
(2) | The Company did not grant any equity awards where estimated future payouts are tied to performance in fiscal 2006. | |
(3) | The amounts reflect the number of restricted stock units awarded to each named executive officer under the Cohu 2005 Equity Incentive Plan. | |
(4) | The amounts reflect the number of stock options awarded to each named executive officer under the Cohu 2005 Equity Incentive Plan. | |
(5) | The exercise price of all stock options granted to the named executive officers is 100% of the fair market value of the shares on the grant date which is the closing price of Cohu Common Stock on August 17, 2006. | |
(6) | The value of the restricted stock units and stock options as of the grant date of such award as determined pursuant to FAS 123R. The option exercise price has not been deducted from the amounts indicated above. Regardless of the value ascribed to a stock option on the grant date, the actual value of the option will depend on the market value of the Cohu Common Stock at such future date when the option is exercised. |
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OPTION AWARDS | STOCK AWARDS | |||||||||||||||||||||||||||||||||||
Equity | Equity | |||||||||||||||||||||||||||||||||||
Incentive | Incentive | |||||||||||||||||||||||||||||||||||
Plan | Plan | |||||||||||||||||||||||||||||||||||
Awards: | Awards: | |||||||||||||||||||||||||||||||||||
Equity | Number | Market | ||||||||||||||||||||||||||||||||||
Incentive | of | or Payout | ||||||||||||||||||||||||||||||||||
Plan | Market | Unearned | Value of | |||||||||||||||||||||||||||||||||
Awards: | Value of | Shares, | Unearned | |||||||||||||||||||||||||||||||||
Number of | Number of | Number | Shares or | Units or | Shares, | |||||||||||||||||||||||||||||||
Number of | Securities | Securities | of Shares | Units of | Other | Units or | ||||||||||||||||||||||||||||||
Securities | Underlying | Underlying | or Units | Stock | Rights | Other | ||||||||||||||||||||||||||||||
Underlying | Unexercised | Unexercised | of Stock | that | that | Rights | ||||||||||||||||||||||||||||||
Unexercised | Options | Unearned | Option | Option | that Have | Have Not | Have Not | that | ||||||||||||||||||||||||||||
Options (#) (1) | (#) (1) | Options | Exercise | Expiration | Not | Vested | Vested | Have Not | ||||||||||||||||||||||||||||
Name | Exercisable | Unexercisable | (#) (2) | Price ($) | Date | Vested (#) | ($) (3) | (#) (2) | Vested ($) | |||||||||||||||||||||||||||
James A. | 20,000 | — | — | 13.50 | 5/6/2007 | — | — | — | — | |||||||||||||||||||||||||||
Donahue | 30,000 | — | — | 17.88 | 4/16/2008 | — | — | — | — | |||||||||||||||||||||||||||
60,000 | — | — | 12.07 | 3/10/2009 | — | — | — | — | ||||||||||||||||||||||||||||
60,000 | — | — | 13.88 | 10/20/2010 | — | — | — | — | ||||||||||||||||||||||||||||
70,000 | — | — | 18.20 | 1/23/2012 | — | — | — | — | ||||||||||||||||||||||||||||
52,501 | 17,499 | — | 14.27 | 1/28/2013 | — | — | — | — | ||||||||||||||||||||||||||||
35,002 | 34,998 | — | 17.50 | 4/19/2014 | — | — | — | — | ||||||||||||||||||||||||||||
27,500 | 82,500 | — | 16.89 | 1/6/2015 | — | — | — | — | ||||||||||||||||||||||||||||
— | 62,750 | — | 16.40 | 8/17/2016 | 21,750 | 438,480 | — | — | ||||||||||||||||||||||||||||
John H. | 20,000 | — | — | 13.50 | 5/6/2007 | — | — | — | — | |||||||||||||||||||||||||||
Allen | 20,000 | — | — | 21.75 | 1/29/2008 | — | — | — | — | |||||||||||||||||||||||||||
10,000 | — | — | 12.07 | 3/10/2009 | — | — | — | — | ||||||||||||||||||||||||||||
25,000 | — | — | 13.88 | 10/20/2010 | — | — | — | — | ||||||||||||||||||||||||||||
30,000 | — | — | 18.20 | 1/23/2012 | — | — | — | — | ||||||||||||||||||||||||||||
22,501 | 7,499 | — | 14.27 | 1/28/2013 | — | — | — | — | ||||||||||||||||||||||||||||
15,002 | 14,998 | — | 17.50 | 4/19/2014 | — | — | — | — | ||||||||||||||||||||||||||||
12,500 | 37,500 | — | 16.89 | 1/6/2015 | — | — | — | — | ||||||||||||||||||||||||||||
— | 29,250 | — | 16.40 | 8/17/2016 | 10,583 | 213,353 | — | — | ||||||||||||||||||||||||||||
Thomas G. | 10,000 | — | — | 14.50 | 4/4/2011 | — | — | — | — | |||||||||||||||||||||||||||
Lightner | 5,000 | — | — | 14.68 | 10/2/2011 | — | — | — | — | |||||||||||||||||||||||||||
15,000 | — | — | 11.66 | 10/14/2012 | — | — | — | — | ||||||||||||||||||||||||||||
15,001 | 4,999 | — | 18.35 | 12/11/2013 | — | — | — | — | ||||||||||||||||||||||||||||
10,000 | 10,000 | — | 15.04 | 10/27/2014 | — | — | — | — | ||||||||||||||||||||||||||||
— | 13,750 | — | 16.40 | 8/17/2016 | 5,417 | 109,207 | — | — | ||||||||||||||||||||||||||||
James G. | 20,000 | — | — | 12.07 | 3/10/2009 | — | — | — | — | |||||||||||||||||||||||||||
McFarlane | 30,000 | — | — | 13.88 | 10/20/2010 | — | — | — | — | |||||||||||||||||||||||||||
20,000 | — | — | 14.68 | 10/2/2011 | — | — | — | — | ||||||||||||||||||||||||||||
20,000 | — | — | 11.66 | 10/14/2012 | — | — | — | — | ||||||||||||||||||||||||||||
11,251 | 3,749 | — | 18.35 | 12/11/2013 | — | — | — | — | ||||||||||||||||||||||||||||
7,501 | 7,499 | — | 15.04 | 10/27/2014 | — | — | — | — | ||||||||||||||||||||||||||||
— | 13,750 | — | 16.40 | 8/17/2016 | 5,417 | 109,207 | — | — | ||||||||||||||||||||||||||||
Colin P. | 6,000 | — | — | 10.82 | 12/15/2008 | — | — | — | — | |||||||||||||||||||||||||||
Scholefield | 6,000 | — | — | 12.07 | 3/10/2009 | — | — | — | — | |||||||||||||||||||||||||||
15,000 | — | — | 13.88 | 10/20/2010 | — | — | — | — | ||||||||||||||||||||||||||||
20,000 | — | — | 14.68 | 10/2/2011 | — | — | — | — | ||||||||||||||||||||||||||||
25,000 | — | — | 11.66 | 10/14/2012 | — | — | — | — | ||||||||||||||||||||||||||||
15,001 | 4,999 | — | 18.35 | 12/11/2013 | — | — | — | — | ||||||||||||||||||||||||||||
10,000 | 10,000 | — | 15.04 | 10/27/2014 | — | — | — | — | ||||||||||||||||||||||||||||
— | 13,750 | — | 16.40 | 8/17/2016 | 5,417 | 109,207 | — | — |
(1) | All stock options listed above vest at a rate of 25% per year over the first four years of the ten-year option term. | |
(2) | The Company did not grant any performance-based equity incentive awards in fiscal 2006. | |
(3) | Based on a closing price of Cohu’s Common Stock of $20.16 as reported on the Nasdaq Global Select Market on December 29, 2006. |
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Option Awards | Stock Awards | |||||||||||||||
Number | ||||||||||||||||
Number | Value | of Shares | ||||||||||||||
Of Shares | Realized | Acquired | Value | |||||||||||||
Acquired on | on Exercise | on Vesting | Realized on | |||||||||||||
Name | Exercise (#) | ($) (1) | (#) (2) | Vesting ($) | ||||||||||||
James A. Donahue | 5,696 | 67,782 | — | — | ||||||||||||
John H. Allen | — | — | — | — | ||||||||||||
Thomas G. Lightner | — | — | — | — | ||||||||||||
James G. McFarlane | — | — | — | — | ||||||||||||
Colin P. Scholefield | 2,500 | 28,500 | — | — |
(1) | Based on the difference between the market price of Cohu’s Common Stock on the date of exercise and the exercise price, multiplied by the number of shares for which the option was exercised. | |
(2) | No stock awards vested in fiscal 2006. |
Name of Fund | Rate of Return | |||
Fidelity VIP Growth | 4.44 | % | ||
T. Rowe Price Large Cap Growth | 10.82 | % | ||
Fidelity VIP Equity-Income | 17.43 | % | ||
Harris Oakmark Focused Value | 11.09 | % | ||
FI Mid Cap Opportunities | 10.02 | % | ||
T. Rowe Price Small Cap Growth | 2.04 | % | ||
MFS Research International | 22.46 | % | ||
Morgan Stanley EAFE Index | 21.48 | % |
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Executive | Registrant | Aggregate | Aggregate | |||||||||||||||||
Contributions | Contributions | Earnings | Aggregate | Balance | ||||||||||||||||
In Last Fiscal | in Last Fiscal | in Last Fiscal | Withdrawals/ | at Last Fiscal | ||||||||||||||||
Name | Year ($) (1) | Year ($) (1) | Year ($) (2) | Distributions ($) | Year-End ($) (3) | |||||||||||||||
James A. Donahue | 100,000 | 9,047 | 151,981 | — | 1,350,763 | |||||||||||||||
John H. Allen | 25,000 | 2,215 | 29,133 | — | 201,443 | |||||||||||||||
Thomas G. Lightner | — | — | — | — | — | |||||||||||||||
James G. McFarlane | — | — | — | — | — | |||||||||||||||
Colin P. Scholefield | — | — | — | — | — |
(1) | Executive and Cohu contributions in fiscal 2006 reflect amounts paid in fiscal 2006 based on compensation earned in 2005. Amounts attributable to 2006 compensation will be paid in 2007 and are not reflected in the amounts noted above. Cohu contributions to be made in 2007 for 2006 compensation deferred are $9,480 for Mr. Donahue and $2,397 for Mr. Allen and these amounts are included in the “All Other Compensation” column in the “2006 Summary Compensation Table” included elsewhere herein. | |
(2) | Aggregate earnings reflect the net gains and losses on mutual fund investment options as provided for under the Cohu Deferred Compensation Plan. These amounts are not included in the 2006 Summary Compensation table as such amounts are not deemed above-market or preferential earnings. | |
(3) | The aggregate balance is included in accrued compensation and benefits in the Cohu December 30, 2006 Consolidated Balance Sheet included in the 2006 Cohu Annual Report on Form 10-K. |
Number of securities | ||||||||||||
available for future | ||||||||||||
Number of securities | Weighted average | issuance under equity | ||||||||||
to be issued upon | exercise price of | compensation plans | ||||||||||
exercise of outstanding | outstanding options, | (excluding securities | ||||||||||
options, warrants and | warrants and rights | reflected in column | ||||||||||
Plan category | rights (a) (1) | (b) (2) | (a)) (c) | |||||||||
(In thousands, except per share amounts) | ||||||||||||
Equity compensation plans approved by security holders | 2,683 | $ | 15.88 | 2,037 | (3) | |||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||
2,683 | $ | 15.88 | 2,037 | |||||||||
(1) | Includes options and restricted stock units (RSUs) outstanding under Cohu’s equity incentive plans, as no stock warrants or other rights were outstanding as of December 30, 2006. | |
(2) | The weighted average exercise price of outstanding options, warrants and rights does not take RSUs into account as RSUs have a de minimus purchase price. | |
(3) | Includes 685 shares of common stock reserved for future issuance under the Cohu 1997 Employee Stock Purchase Plan. |
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• | an executive officer, director or director nominee of Cohu; | ||
• | any person who is known to be the beneficial owner of more than 5% of Cohu’s Common Stock; | ||
• | any person who is an immediate family member (as defined under Item 404 of Regulation S-K) of an executive officer, director or director nominee or beneficial owner of more than 5% of Cohu’s Common Stock; | ||
• | any firm, corporation or other entity in which any of the foregoing persons is employed or is a partner or principal or in a similar position or in which such person, together with any other of the foregoing persons, has a 5% or greater beneficial ownership interest. |
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By Order of the Board of Directors, | ||
![]() | ||
Thomas L. Green | ||
Secretary |
April 2, 2007
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THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR PROPOSALS 1 AND 2. | Mark Here for Address Change or Comments | o | ||
PLEASE SEE REVERSE SIDE |
WITHHELD | FOR ALL | |||||
FOR | FOR ALL | EXCEPT | ||||
1. ELECTION OF DIRECTORS | o | o | o |
Nominees: | ||
01 James W. Barnes 02 James A. Donahue | ||
To withhold authority to vote for any nominee(s) mark “For All Except” and write that nominee’s name in the space provided below. | ||
FOR | AGAINST | ABSTAIN | ||||
2. TO RATIFY THE APPOINTMENT OF ERNST & YOUNG LLP AS COHU’S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR 2007 | o | o | o | |||
Choose MLinkSM for fast, easy and secure 24/7 online access to your future proxy materials, investment plan statements, tax documents and more. Simply log on to Investor ServiceDirect® at www.melloninvestor.com/isd where step-by-step instructions will prompt you through enrollment. | |||
Signature | Signature | Date | ||||||||||
NOTE: Please sign as name appears hereon. Joint owners should each sign. When signing as attorney, executor, administrator, trustee or guardian, please give full title as such. |
Vote by Internet or Telephone or Mail
24 Hours a Day, 7 Days a Week
Internet and telephone voting is available through 11:59 PM Eastern Time
the day prior to May 8, 2007.
Your Internet or telephone vote authorizes the named proxies to vote your shares in the same manner
as if you marked, signed and returned your proxy card.
Internet http://www.proxyvoting.com/cohu | Telephone 1-866-540-5760 | Mail | ||||||||||||
Use the internet to vote your proxy. Have your proxy card in hand when you access the web site. | OR | Use any touch-tone telephone to vote your proxy. Have your proxy card in hand when you call, and follow the instructions. | OR | Mark, sign and date your proxy card and return it in the enclosed postage-paid envelope. | ||||||||||
If you vote your proxy by Internet or by telephone, you do NOT need to mail back your proxy card.
You can view the Annual Report and Proxy Statement
on the internet at www.cohu.com
Table of Contents
COHU, INC.
The undersigned hereby appoints CHARLES A. SCHWAN, JAMES A. DONAHUE and JOHN H. ALLEN, and each of them, with full power to act without the other and with power of substitution, as proxies and attorneys-in-fact and hereby authorizes them to represent and vote, as provided on the other side, all the shares of COHU, INC. Common Stock which the undersigned is entitled to vote, and, in their discretion, to vote upon such other business as may properly come before the Annual Meeting of Stockholders of Cohu to be held May 8, 2007 or at any adjournment or postponement thereof, with all powers which the undersigned would possess if present at the Meeting.
THIS PROXY WILL BE VOTED AS DIRECTED, OR IF NO DIRECTION IS INDICATED, WILL BE VOTED “FOR” THE PROPOSALS.
(Continued and to be marked, dated and signed, on the other side)
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• | View certificate history | • | Make address changes | |||
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