Flex (FLEX) 8-KFlex Announces Kevin Krumm as Chief Financial Officer

On November 22, 2024, Flex Ltd. (the “Company”) announced that, effective January 6, 2025 (the “Effective Date”), Kevin S. Krumm has been appointed Chief Financial Officer of the Company. In connection with Mr. Krumm’s appointment, Jaime Martinez will cease to serve as the Company’s Interim Chief Financial Officer as of the Effective Date.

In connection with his appointment as Chief Financial Officer, the Company entered into an offer letter (the “Offer Letter”) with Mr. Krumm on November 18, 2024. Under the terms of the Offer Letter, Mr. Krumm’s annual base salary will be $832,000. Mr. Krumm will be eligible to participate in the Company’s annual incentive bonus plan, with a target annual bonus of 115% of base salary, and a maximum opportunity of 200% of target. Actual payout levels will be prorated and dependent upon Company performance and in accordance with the terms of the annual incentive bonus plan. Under the Company’s long-term share-based incentive compensation program for fiscal year 2026, Mr. Krumm will be granted an award comprised of 50% performance-based restricted share units (“PSUs”) and 50% service-based restricted share units (“RSUs”) having a target value in the aggregate as of the date of grant of $2,900,000. The RSUs will vest in three substantially equal annual installments on the first three anniversaries of the grant date, subject to continued employment through each vesting date. The PSUs will vest, subject to continued employment through the vesting date, based on the attainment of performance conditions over the next three fiscal years (with the number of shares that vest dependent on the level of achievement), consistent with the Company’s other executive officers. Mr. Krumm will also be eligible to participate in the Company’s Deferred Compensation Plan under which he may receive an annual Company contribution, based on Company performance, with a target amount of 30% of base salary. The fiscal year 2025 contribution will be based on Company performance and prorated based on service during fiscal year 2025. Additionally, Mr. Krumm will be credited with a one-time funding payment of $416,000 (50% of base salary) under the Deferred Compensation Plan, which will cliff vest on the fourth anniversary of the funding date, provided that Mr. Krumm remains employed by the Company through that date.

To compensate Mr. Krumm for certain forfeitures of incentive compensation upon leaving his current employer, Mr. Krumm will receive: (1) a one-time make-whole grant of RSUs having a grant date fair value of $5,800,000 which will vest in three substantially equal annual installments on the first three anniversaries of the grant date, subject to continued employment through each vesting date; and (2) a one-time sign-on cash bonus of $3,500,000, which he is required to repay if, within 24 months of the employment commencement date, he either voluntarily terminates his employment with the Company (other than for “Good Reason” (as defined in the Company’s Executive Severance Plan)) or the Company terminates his employment for “Cause” (as defined in the Company’s Executive Severance Plan). In connection with his relocation to the Austin, Texas area, the Company will provide Mr. Krumm with relocation benefits under the Company’s standard executive relocation policy.

Mr. Krumm’s employment may be terminated by Mr. Krumm or the Company at any time, with or without cause. Mr. Krumm will be eligible to participate in the Company’s Executive Severance Plan. Under the Executive Severance Plan, in the event that Mr. Krumm terminates his employment for Good Reason or the Company terminates his employment without Cause, Mr. Krumm would be entitled to receive the following benefits, subject to entering into and complying with a transition and release agreement in a form provided by the Company (the “Plan Transition Agreement”): (a) salary and benefits coverage continuation for the duration of the transition period in the Plan Transition Agreement; (b) pro-rated portion of annual bonus prior to the transition period, based on actual performance through the end of the performance period; and (c) service-based vesting RSUs, performance-based vesting PSUs and deferred compensation awards continued vesting during the transition period. Following the transition period, the Executive Severance Plan provides for accelerated vesting of RSUs and deferred compensation awards that would have vested during the one-year period following the transition period. Such accelerated vesting would be subject to Mr. Krumm’s signing a release of claims and compliance with post-termination covenants. All other unvested awards would be forfeited. During the transition period, Mr. Krumm would be required to discharge his transition duties and comply with other terms and conditions set forth in the Plan Transition Agreement, including customary non-competition, non-solicitation, non-disclosure, non-disparagement, and cooperation provisions. Any violation of such obligations may result in cessation of benefits and trigger clawback rights of the Company.

On November 22, 2024, the Company issued a press release announcing the appointment of Mr. Krumm as Chief Financial Officer. A copy of the press release is furnished with this report as Exhibit 99.1.

The information in Item 7.01 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that Section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.