Accountability Comes to Sanmina-SCI

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Sanmina-SCI’s board this week quietly changed the compensation plan of chairman and chief executive Jure Sola.

In an SEC 8-K filing, the board said Sola would be issued restricted shares in various amounts depending on the company’s stock price.

Sola gets 80,000 shares if Sanmina’s stock hits a 20 trading-day average closing price of $9, an additional 160,000 shares at $11, an additional 360,000 shares at $13, and an extra 400,000 shares (for a total of 1 million) if the average closing price reaches $15. Any shares that Sola doesn’t win get returned to the company’s stock pool.

I editorialized in our February issue (about to hit your in-boxes) that many EMS providers have shown a startling inability to provide returns for their shareholders, while at the same time enriching their executives. Sanmina had a stretch of 20 straight quarters of one-time (mainly restructuring) charges, and during a three-year stretch during which contract assemblers’ sales have done well as a whole, Sanmina-SCI has been one of the notable laggards — a problem for which I hold its management directly responsible. I’m glad to see Sanmina-SCI’s board is finally awakening to the need to hold its management accountable.

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About Mike

Mike Buetow is president of the Printed Circuit Engineering Association (pcea.net). He previously was editor-in-chief of Circuits Assembly magazine, the leading publication for electronics manufacturing, and PCD&F, the leading publication for printed circuit design and fabrication. He spent 21 years as vice president and editorial director of UP Media Group, for which he oversaw all editorial and production aspects. He has more than 30 years' experience in the electronics industry, including six years at IPC, an electronics trade association, at which he was a technical projects manager and communications director. He has also held editorial positions at SMT Magazine, community newspapers and in book publishing. He is a graduate of the University of Illinois. Follow Mike on Twitter: @mikebuetow

2 thoughts on “Accountability Comes to Sanmina-SCI”

  1. About the only thing this company attempts to do is enrich its executives. Mismanagement is the order of business. Plant closures and lay-offs don’t fix the root cause of the problem. Lack of vision and lack of ethical business practices drives away customers, employees, and good leaders that could save the business. There are some very talented people that work for Sanmina-SCI but the ones getting promoted are the kind of people I wouldn’t trust enough to leave my dog with and I don’t even like my dog.

  2. This comapny is out of control, stock has plummeted, well documented SEC Inquiries, total turmoil in management structure, employees are treated poorly, suppliers are treated poorly, customers are dis-satisfied.

    They have great infrastructure/technology/potential. Why the Board tolerates Mr. Sola is a mystery–they must need tax losses or are incompetent/ignorant to reality.

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