8-KLeadership Changes

APPLIED MATERIALS INC /DE 8-K Report, Executive Changes (Mar 9, 2010)

Filed March 9, 2010For Securities:AMAT

Summary

Applied Materials, Inc. (AMAT) filed an 8-K on March 9, 2010, reporting a key change in its accounting leadership. Yvonne Weatherford, the principal accounting officer since 2005, was appointed to a new role as Corporate Vice President, Segment CFO of Applied Global Services, effective March 22, 2010. Concurrently, the company appointed Thomas Timko as the new Corporate Vice President, Corporate Controller and Chief Accounting Officer, also effective March 22, 2010. Mr. Timko brings a strong background in financial roles at Delphi Automotive and other major corporations. The filing details his compensation package, including base salary, bonus potential, a sign-on bonus, restricted stock units, and severance provisions, which provide investors with insights into the company's investment in its new chief accounting officer.

Key Highlights

  • 1Yvonne Weatherford, the previous principal accounting officer, has transitioned to a new role as Corporate Vice President, Segment CFO of Applied Global Services.
  • 2Thomas Timko has been appointed as the new Corporate Vice President, Corporate Controller, and Chief Accounting Officer.
  • 3Mr. Timko's appointment is effective March 22, 2010.
  • 4Mr. Timko joins Applied Materials from Delphi Automotive LLP, where he held the position of Chief Accounting Officer.
  • 5Mr. Timko's compensation package includes an annual base salary of $350,000, a bonus potential of up to 75% of base salary, and a $125,000 sign-on/retention bonus.
  • 6Mr. Timko will receive a grant of 50,000 restricted stock units vesting over four years.
  • 7The filing outlines severance benefits for Mr. Timko, including 12 months of base salary if terminated without cause in his first year.

Frequently Asked Questions

The filing announces a change in Applied Materials' principal accounting officer. Yvonne Weatherford, who held the role since 2005, is moving to a new position, and Thomas Timko is taking over as the new Corporate Controller and Chief Accounting Officer. This is significant as the Chief Accounting Officer plays a crucial role in financial reporting accuracy and compliance.

Thomas Timko has extensive experience in financial leadership. Most recently, he was the Chief Accounting Officer at Delphi Automotive LLP. Prior to that, he served as Assistant Controller at The Interpublic Group of Companies and Dover Corporation, and began his career at PricewaterhouseCoopers LLC. He is a certified public accountant.

Mr. Timko's compensation includes a base salary of $350,000, an annual bonus opportunity of up to 75% of his base salary, and a $125,000 sign-on and retention bonus. He will also receive 50,000 restricted stock units that vest over four years, and is entitled to relocation benefits. Severance provisions include 12 months of base salary if terminated without cause within his first year.

Yes, the $125,000 sign-on and retention bonus may need to be repaid on a prorated basis if Mr. Timko resigns or if his employment is terminated by Applied Materials within one year of his start date.