Chan Pin Chong
KULICKE & SOFFA INDUSTRIESAbout Chan Pin Chong
Executive Vice President & GM, K&S Products & Solutions; age 56; with K&S since 2014 and leading all capital equipment business units since December 2019 after earlier roles including VP Wedge Bonder and promotion to SVP in December 2016 . Education: B.S. in Computer Science and Electrical & Electronics (SUNY Buffalo) and MBA (University of Leicester) . Compensation and incentives are tied to pay-for-performance: annual cash ICP metrics (Net Income and Operating Margin) and multi-year PSUs based on rTSR against GICS Semiconductor peers; FY2022–FY2024 rTSR cycles paid 138%, 166%, and 95% of target, respectively, reflecting relative TSR outcomes, while the Organic Revenue Growth metric (eliminated for FY2024 grants) paid 8% for FY2022–FY2024 due to competitor outperformance despite negative average growth . FY2024 ICP payout was 20% after excluding extraordinary charges; targets were NI $114.8M and OM 11.8% with wide payout curves reflecting cyclicality .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Kulicke & Soffa (K&S) | EVP & GM, K&S Products & Solutions | Dec 2019–present | Leads Ball Bonder, Wedge Bonder, Advanced Packaging, Electronics Assembly/APMR, and Lithography units under a consolidated capital equipment structure . |
| Kulicke & Soffa (K&S) | SVP | Dec 2016–Dec 2019 | Recognized for growth in Wedge Bonder; expanded responsibilities for Electronics Assembly and Advanced Packaging - Hybrid . |
| Kulicke & Soffa (K&S) | VP, Wedge Bonder | Feb 2014–Dec 2016 | Drove wedge bonder business growth; initial U.S. assignment terms accompanied role . |
| Everett Charles Technologies | Chief Executive Officer | 2010–2014 | Led semiconductor manufacturing operations; CEO credentials prior to K&S . |
| FormFactor | VP Sales & General Country Manager, Singapore | 2007–2010 | Led regional sales and country operations . |
| KLA-Tencor | GM (Beijing/Shanghai); Senior Technical Director (Singapore/Milpitas) | 2005–2007; 1999–2005 | Operational and technical leadership across geographies . |
| Flextronics Singapore; Motorola Inc. | Technical/management/engineering roles | n/a | Foundational operations and engineering experience . |
External Roles
- No public company directorships or external board roles disclosed for Chan Pin Chong .
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary (USD) | $409,628 | $441,805 | $458,359 |
| Target Annual Cash Incentive (% of Base) | — | — | 70% |
| All Other Compensation (USD) | $12,996 | $12,617 | $12,413 |
Performance Compensation
| Metric | Target | Actual | Payout | Weighting | Notes |
|---|---|---|---|---|---|
| ICP Net Income (FY2024) | $114.8M | $38.6M excl. extraordinary items | 20.0% (Committee-set) | 50% | Extraordinary pre-tax charges of $104.7M from project wind-down disclosed; unadjusted NI was $(69.0)M . |
| ICP Operating Margin (FY2024) | 11.8% | 3.6% excl. extraordinary items | 20.0% (Committee-set) | 50% | Payout constrained to maintain thresholds; unadjusted OM was (13.1%) . |
| PSUs rTSR (FY2022–FY2024 cycle) | Market-median comparator | 47th percentile | 95% of target | PSU metric | rTSR vs GICS Semiconductor Index peers . |
| PSUs Organic Revenue Growth (FY2022–FY2024 cycle) | Avg. +5% for target; ≥10% for max | (19)% avg; 1 outperformance vs named competitors | 8% of target | PSU supplemental metric (pre-FY2024) | Organic metric eliminated for grants starting FY2024; PSUs now solely rTSR-based . |
| Annual Bonus Paid (USD) | — | $110,862 | $64,486 | ICP | FY2022 annual bonus was $379,806 . |
Equity Awards and Vesting
| Grant Type | Grant Date | Shares Granted | Vesting Schedule | Grant Date Fair Value (USD) |
|---|---|---|---|---|
| PSUs (rTSR) | Oct 11, 2023 | 8,041 | Cliff vest at end of 3-year period (through Oct 2026) with 0–200% payout; cap at target if absolute TSR negative | $512,051 |
| RSUs (time-based) | Oct 11, 2023 | 8,041 | 1/3 annually on first three anniversaries (Oct 2024, Oct 2025, Oct 2026) | $381,465 |
| FY2024 Total 2021 Plan Awards | FY2024 | RSUs 8,041; PSUs 8,041 | As above | $893,516 total value |
Outstanding equity as of FY2024 year-end (valued at $44.77/share):
- Unvested RSUs: 8,041 ($359,996), 5,826 ($260,830), 2,136 ($95,629) .
- Unearned PSUs: 8,041 ($359,996), 6,555 ($293,467), 2,185 ($97,822), 4,805 ($215,120), 1,602 ($71,722) .
- Market price reference: $44.77 at Sept 27, 2024 used in table .
Equity mix policy: Other executives receive ~50% PSUs and ~50% RSUs; CEO/CFO at 60% PSUs and 40% RSUs from FY2024 onward .
Equity Ownership & Alignment
| Metric | FY 2022 (as of Dec 20, 2022) | FY 2023 (as of Dec 14, 2023) | FY 2024 (as of Dec 9, 2024) |
|---|---|---|---|
| Beneficial Ownership (Shares) | 61,151 | 79,348 | 46,646 |
| Ownership % of Shares Outstanding | — | — | ~0.087% (46,646 / 53,648,978) |
| Options Outstanding | None disclosed | None disclosed | None disclosed |
| Anti-Hedging/Pledging Policy | Prohibited for directors/executive officers | Prohibited | Prohibited |
| Ownership Guidelines | 1x base salary for other execs; 5 years to meet; 50% retention pre-tax until compliance | 1x base | 1x base |
No related party transactions were in place in fiscal 2024 per policy oversight .
Employment Terms
- Employment start and role progression: Hired Feb 17, 2014 (VP Wedge Bonder); promoted to SVP Dec 2016 and EVP & GM Dec 2019 .
- Offer letter summary: Initial base salary S$372,000; eligible for bonus up to 200% of target (target 50% of base at hire); equity grants in October 2014/2015 (50% RSUs vesting over 3 years; 50% PSUs 36-month cliff, SOX index TSR); special performance incentive S$110,000 (paid S$104,500) and eligibility for S$200,000 special equity award; U.S. assignment housing allowance US$5,000/month; tax equalization; change-of-control agreement; subject to Executive Severance Plan and recoupment policy .
- Severance (no change in control): Cash severance equals 12 months of base salary; FY2024 disclosure shows Chan’s cash severance $460,617, with pro rata vesting of equity at Committee discretion (time-based) and based on actual performance (PSUs); total illustrative value $1,376,880 as of Sept 28, 2024 .
- Change-in-control economics (double trigger): Benefit amount equals 12 months for Chan; equity acceleration per 2021 Plan—if not assumed, time-based vests and PSUs paid at target (or actual for TSR if after year 1); if assumed and terminated without cause within 24 months, time-based vests and PSUs paid at target (or actual for TSR if after year 1); illustrative FY2024 totals: cash $783,049; time-based $716,454; performance-based $1,038,127; total $2,537,630 .
- Clawback: SEC/Nasdaq-compliant policy effective Oct 2, 2023 requiring recovery of erroneously awarded incentive compensation upon specified accounting restatements .
- Key practices: Double-trigger COC for cash and equity; no excise tax gross-ups; no option repricing/cash buyouts without shareholder approval; anti-hedging and anti-pledging .
Severance tables (illustrative, company disclosures):
| Scenario | Cash Severance (USD) | Time-based Equity (USD) | Performance Equity (USD) | Total (USD) |
|---|---|---|---|---|
| Termination (no COC) – FY2022 | $414,563 | $348,928 | $800,692 | $1,564,183 |
| Termination (no COC) – FY2023 | $448,651 | $396,675 | $875,096 | $1,720,422 |
| Termination (no COC) – FY2024 | $460,617 | $277,350 | $638,913 | $1,376,880 |
| Change in Control (terminated post-CIC) – FY2024 | $783,049 | $716,454 | $1,038,127 | $2,537,630 |
Compensation Structure Notes and Peer Benchmarking
- Pay-for-performance design: ICP uses NI and OM; PSUs use rTSR vs GICS Semiconductor Index; organic revenue metric removed for FY2024 grants to better align with controllable outcomes .
- Equity grant cadence and governance: Annual grants in Q1; RSUs 3-year ratable; PSUs 3-year cliff; no dividends on options/SARs; dividends/dividend equivalents on full-value awards only upon vesting .
- Peer groups: U.S. Compensation Peer Group of 17 technology names (e.g., ACLS, COHU, ENTG, FORM, MKSI, MPWR, ONTO, UCTT, etc.) and an Asia-Pacific peer group used to calibrate discounts vs U.S. market; FW Cook advises; TDC targets near market median (+/–15%) .
- Say-on-pay: 98.2% approval at 2024 annual meeting; 98.3% in 2023; ongoing shareholder engagement cited .
Director/Executive Program Policies (Alignment & Risk)
- Stock ownership guidelines: CEO 3x base; CFO 2x; other executives 1x; 5-year horizon; 50% retention of net vested shares pre-compliance .
- Compensation risk assessment (FW Cook): No significant risk areas; mitigating factors include caps, multi-factor metrics, clawbacks, ownership guidelines, multi-year vesting, and no severance for “cause” .
- Anti-hedging/pledging and trading policy: Strict prohibition on derivatives, margin purchases, or pledging for directors/executives .
Multi-Year Compensation Summary (USD)
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Salary | $409,628 | $441,805 | $458,359 |
| Stock Awards | $644,287 | $726,191 | $893,516 |
| Non-Equity Incentive (Bonus) | $379,806 | $110,862 | $64,486 |
| All Other Compensation | $12,996 | $12,617 | $12,413 |
| Total | $1,446,717 | $1,291,475 | $1,428,774 |
Investment Implications
- Pay-for-performance alignment: Chan’s variable pay is heavily contingent on company NI/OM and three-year rTSR outcomes; FY2024 ICP paid just 20% and PSUs from the FY2022–FY2024 cycle paid 95% of target, indicating disciplined linkage amid cyclical headwinds .
- Upcoming vesting supply: Material RSU tranches in Oct 2025/Oct 2026 and PSU cliff in Oct 2026 may create near-term selling pressure mechanically around vesting windows; outstanding RSUs/PSUs amounts and market-value references are disclosed as of FY2024 year-end .
- Retention and COC economics: 12-month severance under Executive Plan and double-trigger COC protection with target-level PSU settlement mechanics reduce voluntary departure risk; no excise tax gross-ups and strict anti-pledging/hedging support governance quality .
- Skin-in-the-game: Direct ownership of 46,646 shares (~0.087% of shares outstanding) plus sizable unvested equity aligns incentives but does not represent a large voting stake; ownership guidelines (1x base) and mandatory retention requirements reinforce alignment .
- Execution track record: Career progression and expanded scope reflect operational execution in wedge bonder and broader equipment leadership; however, company-level organic growth metric underperformed in the last cycle, tempering PSU payouts despite relative TSR parity, highlighting cyclicality and end-market dynamics .