Summary
Cadence Design Systems, Inc. announced a significant leadership change in an 8-K filing on January 8, 2009. Lip-Bu Tan was appointed President and Chief Executive Officer, effective January 8, 2009. Mr. Tan, who has been a board member since 2004, was previously serving as Interim Vice Chairman. This appointment dissolves the Interim Office of the Chief Executive, with its members returning to their prior roles. In conjunction with his new role, Mr. Tan has entered into an employment agreement that includes an initial base salary of $600,000, participation in the Senior Executive Bonus Plan with a target bonus of 100% of base salary, and a signing bonus consisting of an option to purchase 900,000 shares of common stock and an award of 300,000 incentive stock shares. The agreement also outlines detailed terms for severance and equity vesting under various termination scenarios, including provisions for "Cause," "Constructive Termination," and "Change in Control."
Key Highlights
- 1Lip-Bu Tan appointed President and CEO, effective January 8, 2009.
- 2Mr. Tan was previously a board member and served as Interim Vice Chairman.
- 3Interim Office of the Chief Executive dissolved; members to resume prior positions.
- 4New CEO employment agreement includes base salary of $600,000 and 100% target bonus.
- 5Signing bonus includes options for 900,000 shares and award of 300,000 incentive shares.
- 6Equity awards have specific vesting schedules, including performance-based criteria for incentive shares.
- 7Detailed severance provisions are outlined for termination without "Cause," "Constructive Termination," and "Change in Control" scenarios.