Who is Mark Garrett and what is his background?

Mark Garrett has been appointed as Adobe's new Executive Vice President and Chief Financial Officer. He has extensive experience in financial leadership, most recently serving as Senior Vice President and Chief Financial Officer of the Software Group at EMC Corporation. Prior to that, he held CFO positions at Documentum, Inc., Marimba, Homestead Technologies, Inc., and Fogdog Sports. He holds an MBA and degrees in Accounting and Marketing from Boston University and Marist College, respectively, and is a director of Borland Corporation.

What are the key components of Mark Garrett's compensation package?

Mr. Garrett's compensation includes an annual base salary of $475,000. He is eligible for a pro-rated bonus of up to 85% of his base salary based on achieving certain Adobe and individual objectives for fiscal year 2007. He will also receive a $100,000 sign-on bonus. Additionally, he will be granted stock options for 275,000 shares vesting over four years and 12,500 target 'Performance Shares' based on fiscal 2007 performance metrics.

What are the provisions related to a Change of Control for Mr. Garrett?

In the event of a change of control, if Mr. Garrett experiences an 'Involuntary Termination' within two years, he is eligible for severance. This includes unpaid salary, a pro-rata bonus, and a cash payment calculated based on his reference salary and bonus, multiplied by a severance multiple reflecting his years of service (up to 12 years). All outstanding equity awards, except performance share units, will accelerate and vest 100%, with the exercise period extended to 12 months post-termination. He will also receive COBRA premium payments for a period defined by his severance multiple.

ADBE 8-K: Leadership Changes

Summary

This 8-K filing from Adobe Systems Incorporated announces a significant leadership change: the appointment of Mark Garrett as Executive Vice President and Chief Financial Officer, effective February 1, 2007. Mr. Garrett brings a wealth of experience from previous CFO roles at EMC Corporation and Documentum, Inc., among others. His compensation package includes a base salary, bonus potential, a sign-on bonus, and substantial equity awards in the form of stock options and performance shares, reflecting the company's investment in experienced financial leadership. Investors should note the detailed terms of Mr. Garrett's employment agreement, including vesting schedules for equity awards and provisions for severance in the event of a change of control. The company has also entered into an indemnity agreement with Mr. Garrett, a standard practice for senior executives. This appointment signals a move to strengthen financial oversight and strategy as Adobe continues to operate in the dynamic software market.

Key Highlights

1Mark Garrett appointed Executive Vice President and Chief Financial Officer, effective February 1, 2007.
2Mr. Garrett's compensation includes an annual base salary of $475,000 and eligibility for a bonus of up to 85% of base salary.
3A sign-on bonus of $100,000 is provided, with a pro-rata repayment clause if employment is terminated within the first year.
4Mr. Garrett will be granted an option to purchase 275,000 shares of common stock, vesting over four years.
5A target award of 12,500 'Performance Shares' will be granted, earned based on fiscal year 2007 performance metrics.
6Mr. Garrett is eligible for standard employee benefits, a 401(k) plan, Employee Stock Purchase Plan, and a Deferred Compensation Plan.
7The company has an Executive Severance Plan in the event of a Change of Control, providing specific severance payments and accelerated vesting of equity awards upon involuntary termination.

ADOBE INC. 8-K Report, Executive Changes (Jan 26, 2007)

Summary

Key Highlights

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