Summary
Cadence Design Systems, Inc. (CDNS) filed an 8-K on October 20, 2008, announcing significant executive changes. Effective October 14-15, 2008, President and CEO Michael J. Fister resigned, along with four other key executive vice presidents: Kevin Bushby, James S. Miller Jr., William Porter, and R.L. Smith McKeithen. This mass resignation marks a critical juncture for the company, prompting the formation of an Interim Office of the Chief Executive (IOCE) to manage daily operations and a board-level search committee to find permanent leadership. The IOCE will be comprised of Chairman of the Board John B. Shoven (providing Board oversight), Director Lip-Bu Tan (Interim Vice Chairman), Senior Vice President Charlie Huang (Chief of Staff of the IOCE), and CFO Kevin S. Palatnik. Messrs. Tan and Huang will hold CEO-level authority. The company also disclosed the terms of separation for the departing executives, including severance packages and transition services, as well as details about the backgrounds of the IOCE members.
Key Highlights
- 1President and CEO Michael J. Fister resigned, effective October 15, 2008.
- 2Four other Executive Vice Presidents (Kevin Bushby, James S. Miller Jr., William Porter, R.L. Smith McKeithen) also resigned from their positions.
- 3An Interim Office of the Chief Executive (IOCE) has been established to manage daily operations.
- 4The IOCE members include Chairman John B. Shoven, Director Lip-Bu Tan, Senior VP Charlie Huang, and CFO Kevin S. Palatnik.
- 5Directors Lip-Bu Tan and Charlie Huang have been appointed to exercise CEO-level authority within the IOCE.
- 6A search committee, co-chaired by Dr. Shoven and Mr. Tan, has been formed to recruit a permanent CEO.
- 7Severance packages and transition service agreements were finalized for the departing executives.