Summary
This Form 8-K filing by Adobe Systems Incorporated (Adobe) on December 11, 2005, primarily reports on an amendment to the employment agreement of Robert K. Burgess, a member of Adobe's board of directors. The amendment addresses potential payments related to Mr. Burgess's termination of employment and aims to ensure compliance with Section 409A of the Internal Revenue Code. Specifically, the amendment delays any payments subject to Section 409A until the earliest possible date to avoid excise taxes. This action indicates Adobe's proactive approach to managing executive compensation and compliance with evolving tax regulations, particularly following its acquisition of Macromedia. Investors should note this update as it relates to executive compensation structure and potential financial implications for directors under new tax laws.
Key Highlights
- 1Adobe Systems Incorporated (ADBE) filed a Form 8-K on December 11, 2005.
- 2The filing details an amendment to the employment agreement of Director Robert K. Burgess.
- 3The amendment pertains to potential termination payments owed to Mr. Burgess.
- 4The primary purpose of the amendment is to comply with Section 409A of the Internal Revenue Code.
- 5Payments subject to Section 409A will be delayed to avoid excise taxes.
- 6The amendment was entered into on December 7, 2005.
- 7The filing also includes an exhibit index referencing the amended employment agreement and a prior agreement.