8-KLeadership Changes

APPLIED MATERIALS INC /DE 8-K Report, Executive Changes (Nov 28, 2012)

Filed November 28, 2012For Securities:AMAT

Summary

This 8-K filing from Applied Materials Inc. (AMAT) reports the departure of Executive Vice President, General Manager Energy and Environmental Solutions, Mark R. Pinto, under the company's previously announced voluntary retirement program (VRP). The VRP is part of a broader restructuring plan. Dr. Pinto's departure is effective January 11, 2013, or a later date as per his agreement. Investors should note that Dr. Pinto will receive separation pay including a lump sum payment of approximately $589,790, which covers salary and continued health benefits. Additionally, the vesting of 103,500 performance shares will be accelerated to his departure date, as performance goals were already met. He will also receive career transition services. His eligibility for a potential fiscal year 2012 bonus remains, subject to committee determination.

Key Highlights

  • 1Mark R. Pinto, EVP and General Manager of Energy and Environmental Solutions, is retiring under the company's voluntary retirement program (VRP).
  • 2Dr. Pinto's retirement is effective January 11, 2013, or another agreed-upon date.
  • 3The company is implementing a restructuring plan that includes this voluntary retirement program.
  • 4Dr. Pinto will receive a lump sum payment of $589,790, comprising base salary continuation and the cost of continued medical, vision, and dental insurance for 12 months.
  • 5103,500 performance shares will have their vesting accelerated to Dr. Pinto's departure date, as performance goals were previously achieved.
  • 6Dr. Pinto will receive career transition services valued at approximately $6,000.
  • 7He remains eligible for any fiscal year 2012 bonus based on performance, pending determination by the Compensation Committee.

Frequently Asked Questions

Mark R. Pinto is leaving Applied Materials by electing to participate in the company's voluntary retirement program (VRP), which is part of a broader restructuring plan.

Dr. Pinto will receive a lump sum payment of $589,790, which includes 52 weeks of base earnings and the cost to continue medical, vision, and dental insurance for 12 months. His unvested performance shares (103,500) will also vest early, and he will receive career transition services.

Yes, as an executive officer through the end of fiscal year 2012, Dr. Pinto remains eligible to receive any bonus payable under the Senior Executive Bonus Plan based on fiscal year 2012 performance goals. The amount, if any, will be determined by the Human Resources and Compensation Committee.

Dr. Pinto's departure date is effective January 11, 2013, or such other date as may be determined in accordance with his VRP participation agreement and the terms of the VRP.