01—Abstract
Summary
Summary of the 8-K filed December 21, 2007. Cited figures are marked; the original filing is the authoritative source.
Cadence Design Systems, Inc. (CDNS) has filed an 8-K report detailing a material amendment to the employment contract of its President and CEO, Michael J.
Fister. The amendment, effective December 21, 2007, specifically addresses housing allowance for Mr. Fister. This is a key point for investors to note as it relates to executive compensation and potential costs for the company.
The amendment stipulates a monthly housing allowance of $17,000a for Mr. Fister. This allowance is set to continue through December 31, 2008, or until both of his private residences in Lake Oswego, Oregon, are sold, whichever comes first. The company will also provide tax gross-up payments related to this allowance, as previously outlined in his employment agreement.
All other terms of Mr. Fister's employment agreement remain unchanged. This development was approved by the Compensation Committee of Cadence's Board of Directors.
02—Key points
Key Highlights
- Material amendment to CEO Michael J. Fister's employment contract.
- CEO to receive a $17,000 monthly housing allowance.
- Housing allowance is effective through December 31, 2008, or the sale of his two residences in Lake Oswego, Oregon, whichever occurs first.
- Cadence will provide tax gross-up payments for the housing allowance.
- All other terms of the CEO's employment agreement remain unchanged.
- Amendment approved by the Compensation Committee of the Board of Directors.
- The amendment is filed as Exhibit 10.1 to the 8-K report.
03—Questions
Frequently Asked Questions
What is the primary purpose of this 8-K filing?
The primary purpose of this 8-K filing is to disclose a material amendment to the employment contract of Cadence's President and CEO, Michael J. Fister, specifically regarding a housing allowance.
What is the financial impact of this housing allowance on Cadence?
The company will incur a cost of $17,000 per month for Mr. Fister's housing allowance, plus associated tax gross-up payments. This expense will continue until December 31, 2008, or until Mr. Fister's residences are sold, whichever is sooner.
Are there any other changes to the CEO's employment agreement?
No, the filing explicitly states that all other terms of Mr. Fister's original Employment Agreement dated May 12, 2004, remain unchanged.
Who approved this amendment to the employment contract?
The amendment was approved by the Compensation Committee of Cadence Design Systems, Inc.'s Board of Directors.
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