8-KLeadership Changes

APPLIED MATERIALS INC /DE 8-K Report, Executive Changes (Feb 27, 2013)

Filed February 27, 2013For Securities:AMAT

Summary

Applied Materials, Inc. (AMAT) announced a significant leadership change in its financial reporting structure via an 8-K filing on February 26, 2013. The company appointed Robert J. Halliday as its new Senior Vice President and Chief Financial Officer (CFO), effective February 25, 2013. Mr. Halliday brings a wealth of experience, having previously served as a group vice president and general manager within AMAT, and notably, as the CFO of Varian Semiconductor Equipment Associates, Inc. prior to its acquisition by Applied Materials in November 2011. This appointment is accompanied by a compensation package designed to incentivize performance and retention. Mr. Halliday's compensation includes a base salary of $500,000, an annual target bonus of 100% of his base salary, and a performance share award of 100,000 shares. The vesting of these shares is tied to specific operating profit margin goals and continued employment, with potential for an additional 50,000 shares based on total shareholder return targets. This move signals a strategic decision by Applied Materials to leverage internal talent and structure executive compensation to align with company performance.

Key Highlights

  • 1Robert J. Halliday appointed as new Senior Vice President and Chief Financial Officer (CFO) effective February 25, 2013.
  • 2Mr. Halliday previously held a leadership role in Applied Materials' Silicon Systems Group after the Varian acquisition.
  • 3He served as CFO of Varian Semiconductor Equipment Associates, Inc. from 2001 until its acquisition in November 2011.
  • 4Initial annual salary for the new CFO is $500,000.
  • 5Eligible for an annual target bonus of 100% of his base salary, contingent on performance goals.
  • 6Awarded 100,000 performance shares with vesting tied to operating profit margin and continued employment.
  • 7Potential to earn an additional 50,000 shares based on total shareholder return performance through fiscal year 2014.

Frequently Asked Questions

Robert J. Halliday has been appointed as the new Senior Vice President and CFO of Applied Materials, Inc.

Mr. Halliday's compensation includes a base salary of $500,000, an annual target bonus of 100% of his base salary, and 100,000 performance shares, with potential for an additional 50,000 shares based on performance metrics.

The performance shares vest based on the achievement of operating profit margin goals, and Mr. Halliday must remain an employee for approximately four years for time-based vesting. Additional shares may be earned based on the company's total shareholder return.

Yes, Mr. Halliday previously served as a group vice president and general manager within Applied Materials' Silicon Systems Group following the acquisition of Varian Semiconductor Equipment Associates, Inc.