Summary
This 8-K filing from Applied Materials, Inc. (AMAT) primarily details the separation agreement and release entered into with Senior Vice President Steve G. Ghanayem. Mr. Ghanayem, who previously announced his departure in January 2021, will receive a structured severance package totaling $2.75 million in cash, along with continued COBRA premium coverage. This agreement is contingent upon his adherence to certain conditions, including the execution of a general release and compliance with non-compete and confidentiality clauses.
Key Highlights
- 1Senior Vice President Steve G. Ghanayem's departure from the company in January 2021 is formalized through a separation agreement.
- 2Mr. Ghanayem is set to receive total cash severance payments of $2.75 million, paid in installments over a year following his departure.
- 3The severance payments are conditional on Mr. Ghanayem not engaging in disqualifying activities and adhering to confidentiality and non-disparagement obligations.
- 4Equity awards for Mr. Ghanayem will continue to vest during his employment, but those with vesting dates beyond December 19, 2020, will be forfeited.
- 5The company will provide Mr. Ghanayem and his dependents with COBRA premium coverage for approximately 18 months.
- 6The separation agreement was finalized on July 3, 2020, and is effective in connection with his departure.
- 7Exhibit 10.1, the full Separation Agreement and Release, is filed with this report.
Frequently Asked Questions
Steve G. Ghanayem is the Senior Vice President of the New Markets and Alliances Group at Applied Materials, Inc. He previously notified the company of his intention to leave in January 2021 to pursue other opportunities. This 8-K formalizes the terms of his departure through a separation agreement.
Mr. Ghanayem will receive a total of $2.75 million in cash severance payments. This will be paid in three installments: $375,000 within 45 days of departure, $375,000 seven months after departure, and $2,000,000 one year after departure. Additionally, the company will cover COBRA premiums for him and his dependents for approximately 18 months.
Yes, the severance payments are contingent upon Mr. Ghanayem executing a general release of claims and not engaging in 'disqualifying activities' (as defined in the agreement) before the one-year anniversary of his departure. He must also comply with certain confidentiality, non-disparagement, and other obligations outlined in the agreement.
Mr. Ghanayem's equity awards will continue to vest during his remaining employment period. However, any equity awards with a vesting date that falls later than December 19, 2020, will be forfeited.