8-KLeadership ChangesExhibits & Filings

APPLIED MATERIALS INC /DE 8-K Report, Executive Changes (Sep 29, 2022)

Filed September 29, 2022For Securities:AMAT

Summary

This 8-K filing from Applied Materials (AMAT) announces a separation agreement with Ali Salehpour, Senior Vice President of Services, Display and Flexible Technology, who previously announced his retirement in August 2022 for January 2023. The agreement outlines Mr. Salehpour's transition to an Advisor role to the CEO until his separation, during which he will continue to receive his current compensation and benefits, including salary, eligibility for the fiscal year 2022 bonus, and continued vesting of equity awards. Further details of the agreement include a lump-sum cash payment of $655,000, payable one year after separation, contingent on adherence to non-compete and confidentiality clauses. The company will also cover COBRA premiums for Mr. Salehpour and his dependents for approximately 18 months. This filing provides transparency on executive transitions and associated financial arrangements.

Key Highlights

  • 1Ali Salehpour, SVP Services, Display and Flexible Technology, has entered into a separation agreement upon his planned retirement in January 2023.
  • 2Mr. Salehpour will serve as an Advisor to the CEO until his separation date.
  • 3He will continue to receive his current compensation, including salary and bonus eligibility for FY2022.
  • 4Outstanding equity awards for Mr. Salehpour will continue to vest as per existing grant agreements.
  • 5A lump-sum payment of $655,000 is stipulated, payable one year post-separation, subject to certain conditions.
  • 6Applied Materials will provide COBRA premium coverage for Mr. Salehpour and his dependents for approximately 18 months.
  • 7The separation agreement includes clauses regarding confidentiality, non-disparagement, and disqualifying activities.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose the details of a separation agreement between Applied Materials and Ali Salehpour, a Senior Vice President, following his announced retirement.

Until his retirement in January 2023, Mr. Salehpour will continue to receive his current salary, remain eligible for his fiscal year 2022 bonus, and his outstanding equity awards will continue to vest under the original terms.

The separation agreement includes a lump-sum cash payment of $655,000, payable one year after his separation, provided certain conditions (like not engaging in disqualifying activities or breaching obligations) are met. Applied Materials will also cover COBRA premiums for him and his dependents for approximately 18 months.

Yes, the $655,000 payment is contingent upon Mr. Salehpour executing a supplemental release of claims and not engaging in any disqualifying activities or breaching specific obligations (such as confidentiality and non-disparagement) on or before the one-year anniversary of his separation.