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CADENCE DESIGN SYSTEMS INC 8-K Report, Executive Changes (May 15, 2007)

Reports
Leadership Changes·Exhibits & Filings
Filing Date
Filed May 15, 2007
Period End
May 9, 2007
Security
CDNS
In the record · 2016–202610-K1210-Q328-K98

CDNS filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 98 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Leadership change8-K · May ’19May ’19
  3. Leadership change8-K · Jul ’21Jul ’21
  4. Material agreement8-K · Sep ’25Sep ’25

01—Abstract

Summary

Summary of the 8-K filed May 15, 2007. Cited figures are marked; the original filing is the authoritative source.

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 $17,000a 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.

02—Key points

Key Highlights

  1. President and CEO Michael J. Fister to receive a $17,000 monthly housing allowance through December 31, 2007.
  2. Cadence will provide tax gross-up payments related to the housing allowance for the CEO.
  3. Stockholders approved amendments to the 1987 Stock Incentive Plan.
  4. The term of the Stock Incentive Plan is extended by 10 years, now ending on May 8, 2017.
  5. An additional 4,000,000 shares of common stock have been made available for issuance under the Stock Incentive Plan.
  6. The number of shares authorized for incentive stock awards under the plan increased by 2,000,000.
  7. The Compensation Committee of the Board of Directors approved the CEO's employment agreement amendment.

03—Questions

Frequently Asked Questions

  1. What is the primary financial impact of the CEO's housing allowance amendment?

    The primary financial impact is an increase in executive compensation expenses for Cadence, specifically related to the $17,000 monthly housing allowance and associated tax gross-up payments for CEO Michael J. Fister through the end of 2007. While significant for the executive, the absolute dollar amount is likely immaterial to the company's overall financial statements.

  2. Why did Cadence amend its Stock Incentive Plan?

    Cadence amended its Stock Incentive Plan to extend its operational life by ten years, ensuring continued ability to use equity as a tool for employee compensation and retention. The increase in authorized shares provides room for future grants, and the specific increase for incentive stock awards suggests a focus on that particular type of equity grant.

  3. Are there any other significant changes to the CEO's employment terms besides the housing allowance?

    No, the filing explicitly states that 'All other terms of the Employment Agreement remain unchanged.' The amendment is narrowly focused on the housing allowance and related tax gross-ups.

  4. What is the total number of shares potentially available under the Stock Incentive Plan after the amendment?

    After the amendment, the total number of shares of Cadence common stock available for issuance under the 1987 Stock Incentive Plan increased to 75,370,100.

04—Continue

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