What are the key responsibilities of Richard Rowley in his new role?

Richard Rowley has been appointed as Vice President, Corporate Controller, and Principal Accounting Officer. This role typically involves overseeing the company's accounting operations, financial reporting, internal controls, and ensuring compliance with accounting regulations.

What is the total potential compensation package for Mr. Rowley in his first year?

In his first year, Mr. Rowley's guaranteed compensation includes a base salary of $280,000. He is also eligible for a bonus of up to 40% of his base salary ($112,000) and profit sharing of up to 10% of his base salary ($28,000), totaling a potential of $420,000 before considering equity awards. The actual bonus and profit sharing amounts depend on achieving certain company and individual objectives.

What are the terms of the equity awards granted to Mr. Rowley?

Mr. Rowley has been granted an option to purchase 50,000 shares of Adobe common stock, which will vest over four years. Additionally, he has been granted a target award of 5,000 Performance Shares, which will be earned if specific performance metrics are met for the 2007 fiscal year, with potential payouts ranging from 0% to 150% of the target.

What protection does Mr. Rowley have in case of a change of control at Adobe?

The filing details an Executive Severance Plan for a Change of Control. If Mr. Rowley experiences an involuntary termination within two years after a change of control, he is entitled to a cash severance payment. This payment includes accrued salary and vacation, a pro-rata bonus, and a severance multiple based on his salary, bonus, and years of service (up to 12 years). Additionally, all his equity awards would accelerate and vest, and the exercise period would be extended, along with continued COBRA premium payments.

ADBE 8-K: Leadership Changes

Summary

This 8-K filing by Adobe Systems Incorporated announces the appointment of Richard Rowley as Vice President, Corporate Controller, and Principal Accounting Officer, effective November 13, 2006. The filing details Mr. Rowley's compensation package, including a base salary of $280,000, bonus eligibility, and participation in profit sharing. It also outlines equity awards, specifically a stock option grant of 50,000 shares vesting over four years and a target award of 5,000 "Performance Shares" for the 2007 fiscal year, subject to specific performance metrics. Furthermore, the report specifies Mr. Rowley's eligibility for Adobe's standard benefits, a deferred compensation plan, and an executive severance plan in the event of a change of control. This plan includes a multi-year severance payment based on salary and years of service, acceleration of equity awards, and continued COBRA premium payments. The filing also corrects a typographical error in the Executive Severance Plan and includes the relevant exhibits, such as Mr. Rowley's offer letter and the updated severance plan.

Key Highlights

1Richard Rowley appointed Vice President, Corporate Controller, and Principal Accounting Officer, effective November 13, 2006.
2Mr. Rowley to receive an annual base salary of $280,000.
3Eligibility for a bonus of up to 40% of base salary and up to 10% of base salary in profit sharing.
4Grant of 50,000 stock options vesting over four years.
5Target award of 5,000 Performance Shares based on 2007 fiscal year performance metrics.
6Mr. Rowley will participate in standard benefits, a deferred compensation plan, and an executive severance plan contingent on a change of control.
7Correction of a typographical error in the Executive Severance Plan.

ADOBE INC. 8-K Report, Executive Changes (Nov 16, 2006)

Summary

Key Highlights

Frequently Asked Questions