Lester Wong

About Lester Wong

Lester Wong (58) is Executive Vice President and Chief Financial Officer of Kulicke & Soffa (KLIC). He joined KLIC in September 2011 as General Counsel and became CFO on December 20, 2018, with promotion to EVP on January 1, 2022 . He holds a Bachelor’s from Western University (Ontario) and a J.D. from the University of British Columbia; admitted to the Law Society of Upper Canada and British Columbia (1993) and the Law Society of Hong Kong (1997) . Executive incentives are tied to Net Income (weighted 50%) and Operating Margin under the annual ICP ; long-term PSUs blend relative TSR and organic revenue growth, with the most recent completed cycle delivering rTSR payout of 95% on cumulative TSR of (-26%) and organic growth payout of 8% over Oct 3, 2021–Sep 28, 2024 .

Past Roles

External Roles

Fixed Compensation

Note: Compensation for Mr. Wong is denominated in Singapore dollars; USD reporting reflects average FX rates (2022: 1.3759; 2023: 1.3540; 2024: 1.3452) and can vary due to currency fluctuations .

Performance Compensation

ICP (Annual Cash Incentive) Design and Outcome

Long-Term Equity (PSUs and RSUs)

Design highlights:

• PSUs based on relative TSR and organic revenue growth; payout range 0–200%, with rTSR capped at target when absolute TSR is negative over the performance period .
• RSUs vest in 1/3 increments on each of the first three anniversaries of the grant date; PSUs cliff-vest at three years based on performance .

FY 2024 Grants (Awarded Oct 11, 2023)

Historical CFO equity awards:

• 11/27/2017: S$300,000 (50% RSUs, 50% PSUs); RSUs fully vested; PSUs 36-month cliff, 0–200% payout (metrics: organic growth, relative TSR) .
• 1/02/2019: S$350,000 (75% PSUs, 25% RSUs); RSUs vest over 36 months; PSUs 36-month cliff, 0–200% payout (metrics: organic revenue growth, relative TSR) .

Equity Ownership & Alignment

Beneficial Ownership

Unvested and Unearned Equity at FY 2024 Year-End (Sep 28, 2024; price $44.77)

Policies and guidelines:

• Hedging and pledging of Company stock are prohibited for directors and executive officers .
• Executive ownership guidelines: CFO required to hold 2x base salary; progress reviewed annually; 50% post-tax retention until compliance if <5 years in role .

Employment Terms

Executive Severance Pay Plan (No Change in Control)

Change-in-Control Agreement (CIC)

Compensation Structure Analysis

• Mix shifts toward equity: Stock awards were $881,066 (FY22), $1,034,425 (FY23), $1,237,986 (FY24), dominating total compensation relative to cash components .
• PSU design tightened: rTSR maximum moved from 99th to 85th percentile; cap at target when absolute TSR is negative, reinforcing pay-for-performance .
• ICP targets based on NI and OM with wide funding ranges to reflect cyclicality; NI weighted 50% with explicit funding scale .
• No stock options outstanding, reducing near-term exercise-driven selling pressure .

Investment Implications

• Alignment: Strong long-term equity orientation via PSUs/RSUs and ownership guidelines (CFO 2x base), with prohibitions on hedging/pledging—supports alignment and reduces leverage-related risk .
• Retention risk: CFO severance outside CIC of ~$2.2M and CIC total ~$3.8M imply competitive protection; double-trigger equity treatment (if assumed) plus 18-month cash severance reduce departure risk post-CIC .
• Performance signal: FY22 PSU cycle payouts (rTSR 95%, organic growth 8%) reflect challenged 3-year TSR and growth backdrop; ICP is tied to NI/OM, with FY24 CFO cash payout modest ($69k), suggesting disciplined funding amidst cycle .
• Calendared selling pressure: RSUs vest annually on grant anniversaries (e.g., 10/11 for recent grants) and PSUs cliff-vest on three-year cycles; monitor Form 4s around those dates for potential liquidity events .
• Governance comfort: Clawback policy, anti-repricing, and risk assessments by FW Cook indicate balanced incentive design without excessive risk-taking .

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