UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
(Amendment No. __)
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Preliminary Proxy Statement
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
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Definitive Proxy Statement
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Definitive Additional Materials
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Soliciting Material Pursuant to §240.14a-12
_________________________Aehr Test Systems___________________________
(Name of Registrant as Specified in its Charter)
(Name (Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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[ ] | Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. |
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(2)
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(3)
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(4)
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400 Kato Terrace
Fremont, California 94539
_____________________________
TO BE HELD ON OCTOBER 27, 201025, 2011_____________________________
To elect six directors. To approve an amendment to the Company’s 2006 Equity Incentive Plan to increase the number of shares reserved for issuance thereunder by an additional 900,000 shares. To transact such other business as may properly come before the Annual Meeting or any adjournments thereof. RHEA J. POSEDEL ALL SHAREHOLDERS ARE CORDIALLY INVITED TO ATTEND THE MEETING. HOWEVER, TO ENSURE YOUR REPRESENTATION AT THE MEETING, YOU ARE URGED TO MARK, SIGN, DATE AND RETURN THE ENCLOSED PROXY CARD AS PROMPTLY AS POSSIBLE IN THE POSTAGE-PREPAID ENVELOPE ENCLOSED FOR THAT PURPOSE. ANY SHAREHOLDER ATTENDING THE MEETING MAY VOTE IN PERSON EVEN IF HE OR SHE HAS RETURNED A PROXY CARD.AEHRTEST
AEHR TEST SYSTEMS:27, 2010,25, 2011, at 4:00 p.m., at the Company’s corporate headquarters located at 400 Kato Terrace, Fremont, California 94539, for the following purposes:1. 1.2. 2.3. To approve an amendment to the Company’s 2006 Employee Stock Purchase Plan to increase the number of shares reserved for issuance thereunder by an additional 350,000 shares. 4. To ratify the selection of Burr Pilger Mayer, Inc. as the Company’s independent registered public accounting firm for the fiscal year ending May 31, 2011.2012.5. 3.20102011 will be entitled to notice of and to vote at the Annual Meeting.
Chief Executive Officer and
Chairman of the Board of Directors20102011 ANNUAL MEETING OF SHAREHOLDERS. THE PROXY STATEMENT AND THE RELATED PROXY FORM ARE BEING DISTRIBUTED ON OR ABOUT SEPTEMBER 27, 2010.2011. YOU CAN VOTE YOUR SHARES USING ONE OF THE FOLLOWING METHODS:• COMPLETE AND RETURN A WRITTEN PROXY CARD; OR • ATTEND THE COMPANY’S 2011 ANNUAL MEETING OF SHAREHOLDERS AND VOTE. COMPLETE AND RETURN A WRITTEN PROXY CARD; ORATTEND THE COMPANY’S 2010 ANNUAL MEETING OF SHAREHOLDERS AND VOTE.
MATERIALS FOR THE ANNUAL MEETING TO BE HELD OCTOBER 27, 2010:25, 2011:
400 Kato Terrace
Fremont, California 94539
_______________
PROXY STATEMENT
_______________20102011 ANNUAL MEETING OF SHAREHOLDERS
1. |
| To elect six directors. |
2. | To approve an amendment to the Company’s 2006 Equity Incentive Plan to increase the number of shares reserved for issuance thereunder by an additional 900,000 shares. |
3. |
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4. | To ratify the selection of Burr Pilger Mayer, Inc. as the Company’s independent registered public accounting firm for the fiscal year ending May 31, |
5. |
| To transact such other business as may properly come before the Annual Meeting or any adjournments of the Annual Meeting. |
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20112012 Annual Meeting
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Investor Relations or by calling investor relations at (510) 623-9400, and the Company will promptly deliver a separate copy. If you share an address with another shareholder and you are receiving multiple copies of annual reports or proxy statements, you may write us at the address above to request delivery of a single copy of these materials in the future.
AND MANAGEMENT
Shares Beneficially Owned(1) | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Beneficial Owner | Number | Percent(2) | |||||||||
Directors and Named Executive Officers: | |||||||||||
Rhea J. Posedel (3) | 1,158,367 | 12.7 | % | ||||||||
Robert R. Anderson (4) | 179,937 | 2.0 | % | ||||||||
William W. R. Elder (5) | 146,000 | 1.6 | % | ||||||||
Mukesh Patel (6) | 56,929 | * | |||||||||
Mario M. Rosati (7) | 247,967 | 2.8 | % | ||||||||
Howard T. Slayen (8) | 41,250 | * | |||||||||
Gary L. Larson (9) | 179,497 | 2.0 | % | ||||||||
David S. Hendrickson (10) | 119,412 | 1.3 | % | ||||||||
Gregory M. Perkins (11) | — | — | |||||||||
Carl Buck (12) | 133,658 | 1.5 | % | ||||||||
Kunio Sano (13) | 56,291 | * | |||||||||
All Directors and Executive Officers as a group (11 persons) (14) | 2,319,308 | 23.9 | % | ||||||||
Principal Shareholders: | |||||||||||
State of Wisconsin Investment Board (15) 121 East Wilson Street, Madison, WI 53702 | 837,166 | 9.4 | % |
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| Shares Beneficially | ||
Beneficial Owner |
| Number |
| Percent(2) |
Directors and Named Executive Officers: |
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Rhea J. Posedel (3) |
| 1,143,456 |
| 12.9% |
Robert R. Anderson (4) |
| 184,436 |
| 2.1% |
William W. R. Elder (5) |
| 136,000 |
| 1.6% |
Mukesh Patel (6) |
| 51,929 |
| * |
Mario M. Rosati (7) |
| 242,967 |
| 2.8% |
Howard T. Slayen (8) |
| 27,500 |
| * |
Gary L. Larson (9) |
| 167,788 |
| 1.9% |
Joel Bustos (10) |
| 70,892 |
| * |
David S. Hendrickson (11) |
| 127,493 |
| 1.4% |
Gregory M. Perkins (12) |
| 59,852 |
| * |
All Directors and Executive Officers as a group (12 persons) (13) |
| 2,372,658 |
| 25.0% |
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Principal Shareholders: |
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State of Wisconsin Investment Board (14) |
| 651,793 |
| 7.5% |
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* | Represents less than 1% of the Common Shares |
(1) | Beneficial ownership is determined in accordance with the rules of the SEC. Unless otherwise indicated in the footnotes to this table, the persons and entities named in the table have represented to |
the Company that they have sole voting and sole investment power with respect to all shares beneficially owned, subject to community property laws where applicable. Unless otherwise indicated, the address of each of the individuals listed in the table is c/o Aehr Test Systems, 400 Kato Terrace, Fremont, California 94539. |
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(2) | Shares of Common Stock subject to options that are currently exercisable or exercisable within 60 days of August 31, |
(3) | Includes 9,950 shares held by Natalie Diane Posedel, Mr. Posedel’s daughter, and |
(4) | Includes |
(5) | Includes 3,000 shares held by Derek S. Elder and 3,000 shares held by Corwin W. Elder, Mr. Elder’s sons, and |
(6) | Includes |
(7) | Includes 27,000 shares held by Mario M. Rosati and Douglas Laurice, trustees for the benefit of Mario M. Rosati, 156,016 shares held by Mario M. Rosati, Trustee of the Mario M. Rosati Trust, U/D/T dated 1/9/90, 22,500 shares held by WS Investment Company, LLC (2001A) of which Mr. Rosati is a general partner and |
(8) | Includes |
(9) | Includes |
(10) | Includes |
(11) | Mr. |
| Includes |
| Includes |
| Includes |
| Based solely on Schedule 13G/A filed February |
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(a) | (b) | (c) | ||||||||||||
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Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |||||||||||
Equity compensation plans approved by security holders | 2,027,168 | (1) | $3.77 | 1,161,813 | ||||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||||
Total | 2,027,168 | $3.77 | 1,161,813 |
(a) | (b) | (c) | ||||||||||||
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Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |||||||||||
Equity compensation plans approved by security holders | 2,156,486 | (1) | $3.32 | 699,386 | ||||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||||
Total | 2,156,486 | $3.32 | 699,386 |
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period or the last day of the purchase period. If a participant’s rights to purchase stock under all employee
ELECTION OF DIRECTORS
Name of Nominee | Age | Position | Director Since | |||||||||||
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Rhea J. Posedel | 68 | Chairman of the Board and Chief Executive Officer | 1977 | |||||||||||
Robert R. Anderson (1)(2) | 72 | Director | 2000 | |||||||||||
William W.R. Elder (2)(3) | 71 | Director | 1989 | |||||||||||
Mukesh Patel (1)(3) | 52 | Director | 1999 | |||||||||||
Mario M. Rosati | 64 | Director | 1977 | (4) | ||||||||||
Howard T. Slayen (1) | 63 | Director | 2008 |
Name of Nominee | Age | Position | Director Since | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Rhea J. Posedel | 69 | Chairman of the Board and Chief Executive Officer | 1977 | |||||||||||
Robert R. Anderson (1)(2) | 73 | Director | 2000 | |||||||||||
William W.R. Elder (2)(3) | 72 | Director | 1989 | |||||||||||
Mukesh Patel (1)(3) | 53 | Director | 1999 | |||||||||||
Mario M. Rosati | 65 | Director | 1977 | (4) | ||||||||||
Howard T. Slayen (1) | 64 | Director | 2008 |
(1) | Member of the Audit Committee |
(2) | Member of the Compensation Committee |
(3) | Member of the Nominating and Governance Committee |
(4) | Mr. Rosati was a member of the Board of Directors from 1977 to September 2008 and then rejoined the Board of Directors in February 2009. |
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Mr. Slayen held various positions with PricewaterhouseCoopers/Coopers & Lybrand, including his last position as a Corporate Finance Partner. Mr. Slayen currently is a director of Lantronix, Inc., a publicly-held embedded networking solutions company. Mr. Slayen received a B.A. from Claremont McKenna College and a J.D. from the University of California, Berkeley School of Law.
400 Kato Terrace
Fremont, CA 94539
Attn: Secretary
Robert R. Anderson
Mukesh Patel
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retainer of $15,000, (2) $1,500 for each regular board meeting he attends,attended, and (3) $750 for aeach special telephonic meeting he attends.attended. In addition, each outside Committee member receives thereceived payment in the following amounts for each Committee meeting he attendsattended if the meeting iswas not held on the same day as a regular meeting of the Board of Directors: $1,200 for the Chairman of the Audit Committee; $900 for each regular Audit Committee Member; $1,050 for the Chairman of the Compensation Committee; and $750 for each regular Compensation Committee Member. If the Committee meeting is held on the same day as a regular meeting of the Board of Directors, then the Committee members shall bewere paid 50% of the above amounts. Outside directors are alsowere reimbursed for certain expenses incurred in attending board and committee meetings.
Name | Year | Fees Earned or Paid in Cash | Option Award (2) | Total Compensation | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Rhea J. Posedel (1) | 2011 | — | — | — | ||||||||||||||
Robert R. Anderson | 2011 | $ | 24,450 | $ | 7,078 | $ | 31,528 | |||||||||||
William W.R. Elder | 2011 | $ | 21,750 | $ | 7,078 | $ | 28,828 | |||||||||||
Mukesh Patel | 2011 | $ | 23,850 | $ | 7,078 | $ | 30,928 | |||||||||||
Mario M. Rosati | 2011 | $ | 21,750 | $ | 7,078 | $ | 28,828 | |||||||||||
Howard T. Slayen | 2011 | $ | 25,800 | $ | 12,535 | $ | 38,335 |
Name | Year | Fees Earned or Paid in Cash | Option Award (2) | Total Compensation | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Rhea J. Posedel (1) | 2010 | — | — | — | ||||||||||||||
Robert R. Anderson | 2010 | $21,550 | $8,213 | $29,763 | ||||||||||||||
William W.R. Elder | 2010 | $18,250 | $8,213 | $26,463 | ||||||||||||||
Mukesh Patel | 2010 | $21,550 | $8,213 | $29,763 | ||||||||||||||
Mario M. Rosati | 2010 | $17,000 | $7,043 | $24,043 | ||||||||||||||
Howard T. Slayen | 2010 | $22,350 | $10,678 | $33,028 |
(1) |
| Rhea J. Posedel is an executive officer and does not receive any additional compensation for services provided as a director. |
(2) |
| Reflects the dollar amount recognized for financial statement reporting purposes for the fiscal year ended May 31, |
or FASB, Accounting Standards Codification 718, or ASC 718, “Compensation |
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Name of Individual Or Identity of Group and Position | Securities Underlying Options Granted(#) | Weighted Average Exercise Price Per Share ($/share) | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Rhea J. Posedel | 55,000 | $2.15 | ||||||||
Gary L. Larson | 25,000 | $1.95 | ||||||||
Carl Buck | 25,000 | $1.95 | ||||||||
David S. Hendrickson | 40,000 | $1.95 | ||||||||
Gregory M. Perkins | 20,000 | $1.95 | ||||||||
Kunio Sano | 25,000 | $1.95 | ||||||||
All current Executive Officers as a group | 190,000 | $2.01 | ||||||||
All outside Directors as a group | 50,000 | $1.32 | ||||||||
All other employees (including all current Officers who are not Executive Officers) as a group | 268,500 | $1.90 |
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Name of Individual or Identity of Group and Position | Number of Shares Purchased (#) | Dollar Value ($)(1) | Payroll Deductions as of Fiscal Year End | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Rhea J. Posedel | — | — | — | |||||||||||
Gary L. Larson | 6,000 | $ | 4,167 | $ | 1,447 | |||||||||
Carl Buck | 6,000 | $ | 4,167 | $ | 1,480 | |||||||||
David S. Hendrickson | — | — | — | |||||||||||
Gregory M. Perkins | — | — | — | |||||||||||
Kunio Sano | — | — | — | |||||||||||
All current executive officers as a group | 12,000 | $ | 8,334 | $ | 2,926 | |||||||||
All other employees (including all current officers who are not executive officers) as a group | 144,578 | $ | 99,509 | $ | 35,093 |
(1) | Market value of shares on date of purchase, minus the purchase price under the ESPP. |
2010 | 2009 | ||||
Audit | $174,450 | $159,395 | |||
TOTAL | $174,450 | $159,395 |
2011 | 2010 | |||||||||
Audit Fees | $142,440 | $174,450 | ||||||||
TOTAL | $142,440 | $174,450 |
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Name | Age | Position | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Rhea J. Posedel |
| 69 | Chief Executive Officer and Chairman of the Board | ||||||||||
Gary L. Larson |
| 61 | Vice President of Finance and Chief Financial Officer | ||||||||||
Carl N. Buck |
| 59 | Vice President of Marketing and Contactor Business Group | ||||||||||
David S. Hendrickson |
| 54 | Vice President of Engineering | ||||||||||
Gregory M. Perkins (1) |
| 57 | Vice President of Worldwide Sales and Service | ||||||||||
Kunio Sano |
| 55 | President, Aehr Test Systems Japan K.K. |
(1) |
| Mr. Perkins terminated employment in February 2011. |
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including Senior Vice President of Marketing and Business Development for GE Capital Computer Leasing. Mr. Perkins received a B.S. in Environmental Health Technologies from Quinnipiac University.
1. |
| reward executive officers for performance and link executive compensation to the creation of shareholder value through the use of performance and equity-based compensation; |
2. |
| attract, retain and motivate highly qualified executive officers by compensating them at a level that is competitive with other companies in similar industries; |
3. |
| share the risks and rewards of the Company’s business with the Company’s executive officers; and |
4. |
| maximize long-term shareholder returns by utilizing compensation funds in a cost-effective manner. |
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1. |
| Determining the specific executive officer compensation methods to be used by the Company and the participants in each of those specific programs; |
2. |
| Determining the evaluation criteria and timelines to be used in those programs; |
3. |
| Determining the processes that will be followed in the ongoing administration of the programs; and |
4. |
| Determining their role in the administration of the programs. |
• | Cash-based programs: base salary, annual bonus plan and a sales commission plan; and |
• | Equity-based programs: The 2006 Equity Incentive Plan, the 2006 Employee Stock Purchase Plan and the ESOP. |
Cash-based programs: base salary, annual bonus plan and a sales commission plan; and
Equity-based programs: The 2006 Equity Incentive Plan, the 2006 Employee Stock Purchase Plan and the ESOP.
These programs apply to all executive level positions, except for the sales commission plan, which only applies to the Vice President of Worldwide Sales and Service. Periodically, but at least once near the close of each fiscal year, the Compensation Committee reviews the existing plans and recommends those that should be used for the subsequent year.
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In fiscal 2010, the Company’s Compensation Committee determined the maximum cash bonus levels for the Company’s Chief Executive Officer, Chief Financial Officer and Vice Presidents to be 30%90% of base compensation. Based on the corporate financial performance for the year, the Compensation Committee awarded no cash bonuses of 17.83% to the Company’s Chief Executive Officer, Chief Financial Officer and Vice Presidents. Joel Bustos, Vice President of Operations, did not receive a cash bonus as he terminated employment prior to the date that the bonus payments occurred. The annual incentive bonus plan is discretionary, and the Compensation Committee may modify, suspend, eliminate or adjust the plan, the goals and the total or individual payouts at any time.
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1. | The Compensation Committee periodically reviews information comparing the Company’s compensation levels to other companies in similar industries, other leading companies (regardless of industry) and competitors. Primarily, personal knowledge of semiconductor equipment industry compensation practices, compensation data in SEC filings, and national and regional compensation surveys are used. |
2. | At or near the start of each evaluation cycle, the Compensation Committee meets with the Chief Executive Officer to review, revise as needed, and agree on the performance objectives set for the other executive officers. The Chief Executive Officer and Compensation Committee jointly set the Company objectives to be used. The business unit and individual objectives are formulated jointly by the Chief Executive Officer and the specific individual. The Compensation Committee also, with the Chief Executive Officer, jointly establishes and agrees on respective performance objectives of each executive officer. |
3. | Throughout the performance cycle review, feedback is provided by the Chief Executive Officer, the Compensation Committee and the Board of Directors, as appropriate. |
4. | At the end of the performance cycle, the Chief Executive Officer evaluates each other executive officers relative success in meeting the performance goals. The Chief Executive Officer makes recommendations on salary, bonus and stock options, utilizing the comparative results as a factor. Also included in the decision criteria are subjective factors such as teamwork, leadership contributions and ongoing changes in the business climate. The Chief Executive Officer reviews the recommendations and obtains Compensation Committee approval. |
5. | The final evaluations and compensation decisions are discussed with each executive officer by the Chief Executive Officer or Compensation Committee, as appropriate. |
1. The Compensation Committee periodically reviews information comparing the Company’s compensation levels to other companies in similar industries, other leading companies (regardless of industry) and competitors. Primarily, personal knowledge of semiconductor equipment industry compensation practices, compensation data in SEC filings, and national and regional compensation surveys are used.
2. At or near the start of each evaluation cycle, the Compensation Committee meets with the Chief Executive Officer to review, revise as needed, and agree on the performance objectives set for the other executive officers. The Chief Executive Officer and Compensation Committee jointly set the Company objectives to be used. The business unit and individual objectives are formulated jointly by the Chief Executive Officer and the specific individual. The Compensation Committee also, with the Chief Executive Officer, jointly establishes and agrees on respective performance objectives of each executive officer.
3. Throughout the performance cycle review, feedback is provided by the Chief Executive Officer, the Compensation Committee and the Board of Directors, as appropriate.
4. At the end of the performance cycle, the Chief Executive Officer evaluates each other executive officers relative success in meeting the performance goals. The Chief Executive Officer makes recommendations on salary, bonus and stock options, utilizing the comparative results as a factor. Also included in the decision criteria are subjective factors such as teamwork, leadership contributions and ongoing changes in the business climate. The Chief Executive Officer reviews the recommendations and obtains Compensation Committee approval.
5. The final evaluations and compensation decisions are discussed with each executive officer by the Chief Executive Officer or Compensation Committee, as appropriate.
20
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not performance-based compensation, is limited to no more than $1 million per year. It is not expected that
Fiscal | Annual Compensation | Option | Long-term Compensation Securities Underlying | All Other | ||||||||||||||||||||||||||
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Name and Principal Position | Year | Salary (1) | Bonus (2) | Awards (3) | Options (4) | Compensation (5) | Total | |||||||||||||||||||||||
Rhea J. Posedel | 2011 | $206,258 | — | $ | 71,538 | $ | 2,499 | $ | 22,298 | $ | 302,593 | |||||||||||||||||||
Chief Executive Officer and | 2010 | $210,118 | $ | 35,781 | $ | 90,063 | $ | 5,763 | $ | 28,682 | $ | 370,407 | ||||||||||||||||||
Chairman of the Board of Directors | 2009 | $236,287 | — | $ | 101,443 | $ | 2,706 | $ | 24,465 | $ | 364,901 | |||||||||||||||||||
Gary L. Larson | 2011 | $188,053 | — | $ | 45,193 | $ | 2,555 | $ | 9,773 | $ | 245,574 | |||||||||||||||||||
Vice President of Finance and | 2010 | $190,946 | $ | 33,530 | $ | 61,867 | $ | 5,910 | $ | 7,765 | $ | 300,018 | ||||||||||||||||||
Chief Financial Officer | 2009 | $205,759 | — | $ | 70,283 | $ | 2,706 | $ | 8,103 | $ | 286,851 | |||||||||||||||||||
Carl Buck (6) | 2011 | $204,272 | — | $ | 36,134 | $ | 1,818 | $ | 12,159 | $ | 254,383 | |||||||||||||||||||
Vice President of Marketing | 2010 | $156,859 | $ | 27,440 | $ | 54,855 | $ | 4,150 | $ | 9,021 | $ | 252,325 | ||||||||||||||||||
and Contactor Business Group | 2009 | $169,490 | — | $ | 50,284 | $ | 2,148 | $ | 9,141 | $ | 231,063 | |||||||||||||||||||
David S. Hendrickson | 2011 | $207,725 | — | $ | 51,087 | $ | 2,503 | $ | 30,130 | $ | 291,445 | |||||||||||||||||||
Vice President of Engineering | 2010 | $182,001 | $ | 33,867 | $ | 63,189 | $ | 5,047 | $ | 28,452 | $ | 312,556 | ||||||||||||||||||
2009 | $208,234 | — | $ | 73,425 | $ | 2,706 | $ | 26,493 | $ | 310,858 | ||||||||||||||||||||
Gregory M. Perkins (7) | 2011 | $222,992 | — | $ | 24,477 | — | $ | 23,767 | $ | 271,236 | ||||||||||||||||||||
Vice President of Worldwide | 2010 | $185,922 | $ | 29,235 | $ | 49,008 | $ | 5,586 | $ | 21,614 | $ | 291,365 | ||||||||||||||||||
Sales and Service | 2009 | $205,643 | — | $ | 52,526 | $ | 2,409 | $ | 15,651 | $ | 276,229 | |||||||||||||||||||
Kunio Sano | 2011 | $177,913 | — | $ | 27,149 | — | $ | 17,643 | $ | 222,705 | ||||||||||||||||||||
President | 2010 | $162,828 | $ | 33,762 | $ | 30,270 | — | $ | 17,354 | $ | 244,214 | |||||||||||||||||||
Aehr Test Systems Japan | 2009 | $159,120 | — | $ | 31,663 | — | $ | 13,428 | $ | 204,211 |
Fiscal Year | Annual Compensation | Option Awards (3) | Long-term Compensation Securities Underlying Options (4) | All Other Compensation (5) | |||||||||||||||||||||||||||
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Name and Principal Position | Salary (1) | Bonus (2) | Total | ||||||||||||||||||||||||||||
Rhea J. Posedel | 2010 | $210,118 | $35,781 | $90,063 | $5,763 | $28,682 | $370,407 | ||||||||||||||||||||||||
Chief Executive Officer and | 2009 | $236,287 | — | $101,443 | $2,706 | $24,465 | $364,901 | ||||||||||||||||||||||||
Chairman of the Board of Directors | 2008 | $237,479 | $58,794 | $66,054 | $5,777 | $27,467 | $395,571 | ||||||||||||||||||||||||
Gary L. Larson | 2010 | $190,946 | $33,530 | $61,867 | $5,910 | $7,765 | $300,018 | ||||||||||||||||||||||||
Vice President of Finance and | 2009 | $205,759 | — | $70,283 | $2,706 | $8,103 | $286,851 | ||||||||||||||||||||||||
Chief Financial Officer | 2008 | $207,763 | $45,823 | $59,001 | $5,777 | $6,981 | $325,345 | ||||||||||||||||||||||||
Joel Bustos (6) | 2010 | $163,500 | — | $109,039 | $4,935 | $22,227 | $299,701 | ||||||||||||||||||||||||
Vice President of Operations | 2009 | $196,668 | — | $112,130 | $2,665 | $23,973 | $335,436 | ||||||||||||||||||||||||
2008 | $183,500 | $40,268 | $81,415 | $4,307 | $25,828 | $335,318 | |||||||||||||||||||||||||
David S. Hendrickson | 2010 | $182,001 | $33,867 | $63,189 | $5,047 | $28,452 | $312,556 | ||||||||||||||||||||||||
Vice President of Engineering | 2009 | $208,234 | — | $73,425 | $2,706 | $26,493 | $310,858 | ||||||||||||||||||||||||
2008 | $202,186 | $54,491 | $49,991 | $5,619 | $26,679 | $338,966 | |||||||||||||||||||||||||
Gregory M. Perkins (7) | 2010 | $185,922 | $29,235 | $49,008 | $5,586 | $21,614 | $291,365 | ||||||||||||||||||||||||
Vice President of Worldwide | 2009 | $205,643 | — | $52,526 | $2,409 | $15,651 | $276,229 | ||||||||||||||||||||||||
Sales and Service | 2008 | $237,157 | $10,386 | $43,242 | $5,777 | $16,456 | $313,018 |
(1) | The amounts in this column include any salary contributed by the named executive officer to the Company’s 401(k) plan. |
(2) | Bonus amounts |
(3) | The amounts in this column represent the dollar amount recognized for financial statement reporting purposes computed in accordance with the provisions of FASB ASC 718 and thus include awards granted in and prior to fiscal 2011, 2010 |
2009, |
(4) | Represents contributions made by the Company under its ESOP. |
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(5) | Consists of health and life insurance premiums and medical costs paid by the Company during the fiscal years ended May 31, 2011, 2010 |
(6) |
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(7) | The amount shown in the Annual Compensation Salary column for fiscal 2011 includes $41,653 in commissions earned in fiscal 2011. The amount shown in the Annual Compensation Salary column for fiscal 2010 includes $32,171 in commissions earned in fiscal 2010. The amount shown in the Annual Compensation Salary column for fiscal 2009 |
Option Grant | Estimated Possible Payouts Under Non-Equity Incentive Plan Awards (1) | Number of Securities Underlying | Exercise Price of Option | Grant Date Fair Value of Stock Option | ||||||||||||||||||||||
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Name | Date | Target | Maximum | Option (2) | Awards (3) | Awards | ||||||||||||||||||||
Rhea J. Posedel | 6/29/10 | $ | — | $ | 70,830 | 55,000 | $ | 2.15 | $ | 67,183 | ||||||||||||||||
Gary L. Larson | 6/29/10 | $ | — | $ | 62,681 | 25,000 | $ | 1.95 | $ | 31,395 | ||||||||||||||||
Carl Buck | 6/29/10 | $ | — | $ | 51,299 | 25,000 | $ | 1.95 | $ | 31,395 | ||||||||||||||||
David S. Hendrickson | 6/29/10 | $ | — | $ | 69,649 | 40,000 | $ | 1.95 | $ | 50,232 | ||||||||||||||||
Gregory M. Perkins (4) | 6/29/10 | $ | — | $ | 54,656 | 20,000 | $ | 1.95 | $ | 25,116 | ||||||||||||||||
Kunio Sano | 6/29/10 | $ | — | $ | 54,483 | 25,000 | $ | 1.95 | $ | 31,395 |
Name | Option Grant Date | Estimated Possible Payouts Under Non-Equity Incentive Plan Awards (1) | Number of Securities Underlying Option (2) | Exercise Price of Option Awards (3) | Grant Date Fair Value of Stock Option Awards | |||||||||||||||||||||
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Target | Maximum | |||||||||||||||||||||||||
Rhea J. Posedel | 6/30/09 | $ — | $70,823 | 60,000 | $0.85 | $32,766 | ||||||||||||||||||||
Gary L. Larson | 6/30/09 | $ — | $62,678 | 30,000 | $0.85 | $16,383 | ||||||||||||||||||||
Joel Bustos (4) | 6/30/09 | $ — | $60,548 | 30,000 | $0.85 | $16,383 | ||||||||||||||||||||
David S. Hendrickson | 6/30/09 | $ — | $63,314 | 30,000 | $0.85 | $16,383 | ||||||||||||||||||||
Gregory M. Perkins | 6/30/09 | $ — | $54,653 | 30,000 | $0.85 | $16,383 |
| Reflects the target and maximum values of cash bonus award to the named executive officers in fiscal |
(2) | The stock options granted in fiscal |
(3) | Options are granted at an exercise price equal to the fair market value of the Company’s Common Stock, as determined by reference to the closing price reported by the NASDAQ |
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The following table presents certain information concerning the outstanding equity awards held as of May 31, 2010 by each named executive officer.
Option Awards Number of Securities Underlying Unexercised Options (1) | Option Exercise Price (2) | Option Expiration Date (3) | |||||||||||||||||
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Name | Exercisable | Unexercisable | |||||||||||||||||
Rhea J. Posedel | 25,000 | — | $3.170 | 6/26/2010 | |||||||||||||||
35,000 | — | $3.993 | 6/30/2011 | ||||||||||||||||
35,000 | — | $3.091 | 6/23/2012 | ||||||||||||||||
14,375 | 625 | $9.295 | 7/18/2013 | ||||||||||||||||
24,062 | 8,938 | $6.556 | 6/26/2012 | ||||||||||||||||
502 | 5,886 | $2.475 | 11/13/2013 | ||||||||||||||||
6,604 | 11,008 | $2.250 | 11/13/2013 | ||||||||||||||||
25,000 | 32,500 | $0.850 | 6/30/2014 | ||||||||||||||||
Gary L. Larson | 9,000 | — | $2.880 | 6/26/2010 | |||||||||||||||
20,000 | — | $3.630 | 6/30/2011 | ||||||||||||||||
25,000 | — | $2.810 | 6/23/2012 | ||||||||||||||||
9,583 | 417 | $8.450 | 7/18/2013 | ||||||||||||||||
14,583 | 5,417 | $5.960 | 6/26/2012 | ||||||||||||||||
1,659 | — | $2.250 | 11/13/2013 | ||||||||||||||||
2,841 | 7,500 | $2.250 | 11/13/2013 | ||||||||||||||||
13,750 | 16,250 | $0.850 | 6/30/2014 | ||||||||||||||||
Joel Bustos (4) | 46,254 | 19,046 | $6.110 | 7/09/2012 | |||||||||||||||
17,495 | 7,205 | $6.110 | 7/09/2012 | ||||||||||||||||
4,495 | 2,732 | $2.250 | 11/13/2013 | ||||||||||||||||
4 | 4,769 | $2.250 | 11/13/2013 | ||||||||||||||||
13,750 | 16,250 | $0.850 | 6/30/2014 | ||||||||||||||||
David S. Hendrickson | 20,000 | — | $6.250 | 9/22/2010 | |||||||||||||||
20,000 | — | $3.630 | 6/30/2011 | ||||||||||||||||
25,000 | — | $2.810 | 6/23/2012 | ||||||||||||||||
9,583 | 417 | $8.450 | 7/18/2013 | ||||||||||||||||
18,229 | 6,771 | $5.960 | 6/26/2012 | ||||||||||||||||
136 | 7,854 | $2.250 | 11/13/2013 | ||||||||||||||||
5,863 | 2,147 | $2.250 | 11/13/2013 | ||||||||||||||||
3,438 | 4,064 | $0.850 | 6/30/2014 | ||||||||||||||||
10,311 | 12,187 | $0.850 | 6/30/2014 | ||||||||||||||||
Gregory M. Perkins | 9,623 | — | $4.350 | 6/03/2011 | |||||||||||||||
1,563 | — | $2.810 | 6/23/2012 | ||||||||||||||||
9,583 | 417 | $8.450 | 7/18/2013 | ||||||||||||||||
10,937 | 4,063 | $5.960 | 6/26/2012 | ||||||||||||||||
4,250 | 7,500 | $2.250 | 11/13/2013 | ||||||||||||||||
250 | — | $2.250 | 11/13/2013 | ||||||||||||||||
13,750 | 16,250 | $0.850 | 6/30/2014 |
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(4) | Mr. Perkins terminated employment in February 2011. |
Option Awards Number of Securities Underlying Unexercised Options (1) | Option Exercise | Option Expiration | ||||||||||||||||
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Name | Exercisable | Unexercisable | Price (2) | Date (3) | ||||||||||||||
Rhea J. Posedel | 35,000 | — | $ | 3.993 | 6/30/2011 | |||||||||||||
35,000 | — | $ | 3.091 | 6/23/2012 | ||||||||||||||
15,000 | — | $ | 9.295 | 7/18/2013 | ||||||||||||||
32,312 | 688 | $ | 6.556 | 6/26/2012 | ||||||||||||||
664 | 5,724 | $ | 2.475 | 11/13/2013 | ||||||||||||||
11,007 | 6,605 | $ | 2.250 | 11/13/2013 | ||||||||||||||
55,000 | 2,500 | $ | 0.850 | 6/30/2014 | ||||||||||||||
12,604 | 42,396 | $ | 2.145 | 6/29/2015 | ||||||||||||||
Gary L. Larson | 20,000 | — | $ | 3.630 | 6/30/2011 | |||||||||||||
25,000 | — | $ | 2.810 | 6/23/2012 | ||||||||||||||
10,000 | — | $ | 8.450 | 7/18/2013 | ||||||||||||||
19,583 | 417 | $ | 5.960 | 6/26/2012 | ||||||||||||||
5,841 | 4,500 | $ | 2.250 | 11/13/2013 | ||||||||||||||
1,659 | — | $ | 2.250 | 11/13/2013 | ||||||||||||||
28,750 | 1,250 | $ | 0.850 | 6/30/2014 | ||||||||||||||
5,729 | 19,271 | $ | 1.950 | 6/29/2015 | ||||||||||||||
Carl Buck | 20,000 | — | $ | 3.630 | 6/30/2011 | |||||||||||||
20,000 | — | $ | 2.810 | 6/23/2012 | ||||||||||||||
10,000 | — | $ | 8.450 | 7/18/2013 | ||||||||||||||
11,750 | 250 | $ | 5.960 | 6/26/2012 | ||||||||||||||
5,000 | 3,000 | $ | 2.250 | 11/13/2013 | ||||||||||||||
28,750 | 1,250 | $ | 0.850 | 6/30/2014 | ||||||||||||||
5,729 | 19,271 | $ | 1.950 | 6/29/2015 | ||||||||||||||
David S. Hendrickson | 20,000 | — | $ | 3.630 | 6/30/2011 | |||||||||||||
25,000 | — | $ | 2.810 | 6/23/2012 | ||||||||||||||
10,000 | — | $ | 8.450 | 7/18/2013 | ||||||||||||||
24,479 | 521 | $ | 5.960 | 6/26/2012 | ||||||||||||||
1,989 | 6,001 | $ | 2.250 | 11/13/2013 | ||||||||||||||
8,010 | — | $ | 2.250 | 11/13/2013 | ||||||||||||||
7,189 | 313 | $ | 0.850 | 6/30/2014 | ||||||||||||||
21,560 | 938 | $ | 0.850 | 6/30/2014 | ||||||||||||||
9,166 | 30,834 | $ | 1.950 | 6/29/2015 | ||||||||||||||
Gregory M. Perkins (4) | — | — | — | — | ||||||||||||||
Kunio Sano | 625 | — | $ | 3.630 | 6/30/2011 | |||||||||||||
1,563 | — | $ | 2.810 | 6/23/2012 | ||||||||||||||
4,000 | — | $ | 8.450 | 7/18/2013 | ||||||||||||||
9,791 | 209 | $ | 5.960 | 6/26/2012 | ||||||||||||||
5,000 | 3,000 | $ | 2.250 | 11/13/2013 | ||||||||||||||
23,958 | 1,042 | $ | 0.850 | 6/30/2014 | ||||||||||||||
5,729 | 19,271 | $ | 1.950 | 6/29/2015 |
(1) | Stock options outstanding are generally exercisable starting one month after the date of grant, and with an additional 1/48th of the total number of option shares becoming exercisable each month thereafter, with full vesting occurring on the fourth anniversary of the date of grant. |
(2) | Options are granted at an exercise price equal to the fair market value of the Company’s Common Stock, as determined by reference to the closing price reported by the NASDAQ Stock Market LLC on the date of grant. Because Rhea J. Posedel owns more than 10% of the Company’s outstanding Common Stock, the exercise prices of any incentive stock option granted to him is set at a 10% premium above the market price on the date of the grant. Non-qualified stock options may be granted to Mr. Posedel at the market price on the date of grant. |
(3) | These options generally expire five or seven years from the date of grant. |
(4) | Mr. |
20102011 and Fiscal 20102011 Year-End Option Values
Shares Acquired on | Value Realized on | Number of Securities Underlying Unexercised Options at Fiscal Year-End(#)(1) | Value of Unexercised In-the-Money Options at Fiscal Year-End($)(2) | |||||||||||||||||||||||
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Name | Exercise (#) | Exercise ($) | Exercisable | Unexercisable | Exercisable | Unexercisable | ||||||||||||||||||||
Rhea J. Posedel | — | — | 196,587 | 57,913 | $ | 34,650 | $ | 1,575 | ||||||||||||||||||
Gary L. Larson | — | — | 116,562 | 25,438 | $ | 18,113 | $ | 788 | ||||||||||||||||||
Carl Buck | — | — | 101,229 | 23,771 | $ | 18,113 | $ | 788 | ||||||||||||||||||
David S. Hendrickson | — | — | 127,393 | 38,607 | $ | 18,112 | $ | 788 | ||||||||||||||||||
Gregory M. Perkins (3) | — | — | — | — | — | — | ||||||||||||||||||||
Kunio Sano | — | — | 50,666 | 23,522 | $ | 15,094 | $ | 656 |
Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Securities Underlying Unexercised Options at Fiscal Year-End(#)(1) | Value of Unexercised In-the-Money Options at Fiscal Year-End($)(2) | ||||||||||||||||||||||||
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Name | Exercisable | Unexercisable | Exercisable | Unexercisable | |||||||||||||||||||||||
Rhea J. Posedel | 2,500 | — | 165,543 | 58,957 | $37,844 | $49,416 | |||||||||||||||||||||
Gary L. Larson | 6,000 | 1,084 | 96,416 | 29,584 | $20,893 | $24,888 | |||||||||||||||||||||
Joel Bustos (3) | — | — | 81,998 | 50,002 | $20,892 | $24,888 | |||||||||||||||||||||
David S. Hendrickson | — | — | 112,560 | 33,440 | $21,026 | $25,114 | |||||||||||||||||||||
Gregory M. Perkins | — | — | 49,956 | 28,230 | $20,893 | $24,888 |
(1) | The Company has not granted any stock appreciation rights and its stock plans do not provide for the granting of such rights. |
(2) | Calculated by determining the difference between the fair market value of the securities underlying the options at the last business day of the fiscal year-end ($ |
(3) | Mr. |
25
Named Executive Benefits and Payments | Involuntary Termination not for Cause Following a | |||||||
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Upon Termination: | Change of Control | |||||||
Rhea J. Posedel | ||||||||
Base salary | $ | |||||||
Medical continuation |
| 22,298 | ||||||
Value of accelerated stock options (1) |
| 1,575 | ||||||
Gary L. Larson | ||||||||
Base salary | $ | |||||||
Medical continuation |
| 7,330 | ||||||
Value of accelerated stock options (1) |
| 788 | ||||||
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| $104,474 | ||||||
Medical continuation | 15,065 | |||||||
Value of accelerated stock options (1) |
| 788 | ||||||
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| $ 76,949 | ||||||
Medical continuation | 6,080 | |||||||
Value of accelerated stock options (1) |
| 788 | ||||||
Gregory M. Perkins (2) | ||||||||
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Base salary | $ 91,690 | |||||||
Medical continuation | 8,821 | |||||||
Value of accelerated stock options (1) |
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656 |
(1) | Represents the aggregate value of the acceleration of vesting of the executive officer’s unvested stock options based on the spread between the closing price of the Company’s Common Stock on May |
(2) | Mr. |
26
27
OF THE BOARD OF DIRECTORS
William W.R. Elder
SECURITIES EXCHANGE ACT OF 1934
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Dated: September 27, 2010
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Using ablack inkpen, mark your votes with anXas shown in | x |
PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Proposals — The Board of Directors recommends a voteFOR all the nominees listed andFOR Proposal 2.
Annual Meeting Proxy Card | ||||||
PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. |
Proposals — The Board of Directors recommends a vote FOR all the nominees listed, FOR Proposal 2, FOR Proposal 3 and FOR Proposal 4. |
1. | Election of Directors: | For | Withhold | For | Withhold | For | Withhold | |||
01 - Rhea J. Posedel | o | o | 02 - Robert R. Anderson | o | o | 03 - William W. R. Elder | o | o | ||
04 - Mukesh Patel | o | o | 05 - Mario M. Rosati | o | o | 06 - Howard T. Slayen | o | o |
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| For | Against | Abstain |
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| For | Against | Abstain |
2. | Proposal to approve an amendment to the Company’s 2006 Equity Incentive Plan to increase the number of shares reserved for issuance thereunder by an additional 900,000 shares. |
| o | o | o | 3. | Proposal to approve an amendment to the Company’s 2006 Employee Stock Purchase Plan to increase the number of shares reserved for issuance thereunder by an additional 350,000 shares. |
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4. | Proposal to ratify the appointment of Burr Pilger Mayer, Inc. as the Company’s independent registered public accounting firm. |
| o | o | o | 5. | In their discretion, the proxyholders are authorized to vote upon such other matter or matters which may properly come before the meeting and any adjournment(s) thereof. |
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF AEHR TEST SYSTEMS ANNUAL MEETING OF SHAREHOLDERS TO BE HELD ON OCTOBER The undersigned shareholder of Aehr Test Systems, a California corporation, hereby acknowledges receipt of the Notice of Annual Meeting of Shareholders and Proxy Statement and hereby appoints Rhea J. Posedel and Gary L. Larson, or either of them, proxies and attorneys-in-fact, with full power to each of substitution, on behalf and in the name of the undersigned, to represent the undersigned at the Annual Meeting of Shareholders of Aehr Test Systems to be held on October THIS PROXY WILL BE VOTED AS DIRECTED OR, IF NO CONTRARY DIRECTION IS INDICATED, WILL BE VOTED (1) FOR THE ELECTION OF THE NOMINATED PLEASE SIGN AND DATE ON REVERSE SIDE Important notice regarding the internet availability of proxy materials for the Annual Meeting of Shareholders The Proxy Statement, Form of Proxy Card and |