Summary
This 8-K filing from Cadence Design Systems (CDNS) on May 15, 2007, primarily details two key events impacting executive compensation and equity incentives. First, the company entered into a second amendment to the Employment Agreement with its President and CEO, Michael J. Fister. This amendment provides Mr. Fister with a housing allowance of $17,000 per month through the end of 2007, with the company providing tax gross-up payments. All other terms of his existing employment agreement remain unchanged. Second, the filing reports that Cadence's stockholders approved amendments to the 1987 Stock Incentive Plan. These amendments extend the plan's term by ten years to May 8, 2017, increase the total number of shares available for issuance by 4 million to over 75 million, and boost the number of shares authorized for incentive stock awards by 2 million. These changes aim to ensure continued employee motivation and retention through equity-based compensation.
Key Highlights
- 1President and CEO Michael J. Fister to receive a $17,000 monthly housing allowance through December 31, 2007.
- 2Cadence will provide tax gross-up payments related to the housing allowance for the CEO.
- 3Stockholders approved amendments to the 1987 Stock Incentive Plan.
- 4The term of the Stock Incentive Plan is extended by 10 years, now ending on May 8, 2017.
- 5An additional 4,000,000 shares of common stock have been made available for issuance under the Stock Incentive Plan.
- 6The number of shares authorized for incentive stock awards under the plan increased by 2,000,000.
- 7The Compensation Committee of the Board of Directors approved the CEO's employment agreement amendment.