Summary
This 8-K filing by Cadence Design Systems, Inc. (CDNS) announces a material definitive agreement related to the departure of Moshe Gavrielov, Executive Vice President and General Manager of the Verification Division. Mr. Gavrielov's employment will terminate effective November 30, 2007, and he will transition to a consulting role with Cadence. This agreement details the terms of his separation, including compensation, stock option vesting, and continued benefits. The primary financial implications for investors center on the costs associated with Mr. Gavrielov's departure. These include a substantial lump-sum payment, potential prorated bonus, and continued health insurance premiums. The agreement also specifies that certain unvested stock options and awards will vest immediately upon his employment termination, while others will be forfeited. The non-solicitation and non-competition clauses aim to protect Cadence's business interests.
Key Highlights
- 1Moshe Gavrielov, EVP and GM of Verification Division, resigns effective November 30, 2007.
- 2Mr. Gavrielov will transition to a consulting role with Cadence at $4,000/month until November 30, 2008.
- 3Cadence will pay $400,000 lump sum on or about May 30, 2008, plus potential prorated bonus for H2 2007.
- 4An additional $400,000 lump sum will be paid on November 30, 2008, provided specific conditions are met.
- 5Certain unvested stock options and restricted stock awards that would have vested between Nov 30, 2007, and Nov 30, 2008, will vest immediately.
- 6Cadence will cover Mr. Gavrielov's COBRA premiums until November 30, 2008.
- 7Mr. Gavrielov agrees to non-solicitation and non-competition provisions.