Summary
This 8-K filing from Agilent Technologies, Inc., dated May 19, 2009, announces the upcoming retirement of D. Craig Nordlund, Senior Vice President, General Counsel, and Secretary, before the end of fiscal year 2009. The filing details the material terms of his retirement agreement, which includes a significant severance payment and provisions for his outstanding long-term incentive awards and stock options. This information is crucial for investors to understand potential executive compensation and severance costs impacting the company's financial outlook.
Key Highlights
- 1D. Craig Nordlund, Senior Vice President, General Counsel and Secretary, will retire before October 31, 2009.
- 2Mr. Nordlund will receive a lump-sum severance payment of $1,525,000, payable by December 31, 2009.
- 3Outstanding Long-Term Performance Program (LTPP) awards will receive full, un-prorated payouts for applicable performance periods.
- 4Unvested stock options will accelerate upon retirement and remain exercisable for up to three years or until their expiration dates, consistent with retiree terms.
- 5Mr. Nordlund will release the Company from all employment-related claims.
- 6He will be eligible for retiree benefits, including medical coverage, as per existing plans.
Frequently Asked Questions
The primary financial impact disclosed is the $1,525,000 lump-sum severance payment. Additionally, the acceleration of stock options and potential full payouts of LTPP awards represent contingent liabilities that could impact future share dilution or compensation expenses.
Mr. Nordlund has informed the company that he will retire prior to the end of Agilent's fiscal year on October 31, 2009.
Mr. Nordlund is releasing Agilent Technologies from any and all claims related to his employment. This is a standard clause in retirement agreements designed to mitigate future legal disputes between the executive and the company.
Unvested stock options held by Mr. Nordlund will accelerate upon his retirement, becoming immediately exercisable. These options will then have a reduced exercise window, expiring either three years after retirement or on their original expiration date, whichever comes first.