Sanmina-SCI reviewing stock option practices
Jun 12, 2006
Sanmina-SCI Corporation (Nasdaq: SANM, "the Company"), announced that in response to recent securities market analyst and media attention regarding its stock option practices, that the Company initiated an internal inquiry of grants to its executive officers as named in its annual proxy statements. It is Sanmina- SCI's practice to grant options to its executive officers at the time of the Compensation Committee's annual review. Outside Directors receive annual grants effective the first business day of October of each year.
Sanmina-SCI's Board of Directors has taken additional measures in light of recent attention to the subject of stock options administration practices by forming a special committee to conduct an investigation of the Company's stock option grant activity. This Committee will retain independent outside legal counsel to conduct a thorough review of the Company's stock option programs.
Separately, the Securities and Exchange Commission has contacted the Company and requested certain information regarding option grants to its executive officers, directors, and employees for the period since January 1, 1997. The Company intends to fully cooperate with the SEC's request.
Sanmina-SCI will make further announcements about the review process as appropriate.