8-KLeadership ChangesExhibits & Filings

APPLIED MATERIALS INC /DE 8-K Report, Executive Changes (Aug 16, 2013)

Filed August 16, 2013For Securities:AMAT

Summary

Applied Materials, Inc. (AMAT) announced a significant leadership transition via an 8-K filing on August 16, 2013, detailing the appointment of Gary E. Dickerson as the new President and Chief Executive Officer (CEO), effective September 1, 2013. Mr. Dickerson, who previously served as President of Applied Materials and CEO of Varian Semiconductor Equipment Associates, brings extensive experience to the top role. This leadership change marks a new chapter for the company, with a clear succession plan in place. Concurrently, long-time CEO Michael R. Splinter will transition to the role of Executive Chairman of the Board through at least March 31, 2015. In this capacity, Mr. Splinter will focus on strategic projects, industry initiatives, and public policy, while supporting Mr. Dickerson's transition. The company has outlined compensation packages for both executives, including a substantial stock option grant for Mr. Dickerson, and details regarding Mr. Splinter's continued role and potential severance. Investors should monitor the execution of this leadership transition and its impact on the company's strategic direction and future performance.

Key Highlights

  • 1Gary E. Dickerson appointed President and CEO, effective September 1, 2013.
  • 2Michael R. Splinter transitions to Executive Chairman of the Board until at least March 31, 2015.
  • 3Mr. Dickerson's new role includes a base salary of $980,000 and a target bonus of 175% of base salary.
  • 4Mr. Dickerson will receive a stock option grant for 1,000,000 shares, vesting over four years.
  • 5Mr. Splinter's primary duties as Executive Chairman will focus on strategic projects, industry initiatives, and public policy.
  • 6Mr. Splinter's compensation and bonus target remain unchanged during his tenure as Executive Chairman.
  • 7Details on Mr. Splinter's severance and equity award vesting upon retirement or termination are provided.

Frequently Asked Questions

Gary E. Dickerson has been appointed as the new President and Chief Executive Officer (CEO) of Applied Materials, Inc., effective September 1, 2013. He was previously the President of the company.

Michael R. Splinter will transition to the role of Executive Chairman of the Board, a position he is expected to hold through at least March 31, 2015. His responsibilities will focus on strategic projects, industry-wide initiatives, and public policy, as well as supporting the new CEO.

Effective September 1, 2013, Gary E. Dickerson's initial base salary will be $980,000, with a target bonus of 175% of his base salary under the Senior Executive Bonus Plan. He will also receive a stock option grant for 1,000,000 shares, vesting over four years.

Yes, Mr. Splinter will remain eligible for the same severance payments as under his current arrangement, plus an additional lump sum for 18 months of COBRA coverage under specific termination conditions (mutually agreed end date, termination without cause, or resignation for good reason). Additionally, upon his retirement, all time-based vesting requirements for his equity awards will lapse, and performance-based awards will remain eligible to vest based on actual performance.