Summary
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 $17,000 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.
Key Highlights
- 1Material amendment to CEO Michael J. Fister's employment contract.
- 2CEO to receive a $17,000 monthly housing allowance.
- 3Housing allowance is effective through December 31, 2008, or the sale of his two residences in Lake Oswego, Oregon, whichever occurs first.
- 4Cadence will provide tax gross-up payments for the housing allowance.
- 5All other terms of the CEO's employment agreement remain unchanged.
- 6Amendment approved by the Compensation Committee of the Board of Directors.
- 7The amendment is filed as Exhibit 10.1 to the 8-K report.