8-KLeadership ChangesExhibits & Filings

CADENCE DESIGN SYSTEMS INC 8-K Report, Executive Changes (Nov 17, 2017)

Filed November 17, 2017For Securities:CDNS

Summary

This 8-K filing by Cadence Design Systems, Inc. (CDNS) announces a significant leadership change: Anirudh Devgan has been appointed President, effective November 16, 2017. This transition involves a restructuring of executive roles, with Lip-Bu Tan stepping down as President while continuing as CEO and a director. Mr. Devgan, previously Executive Vice President of Research and Development, brings extensive experience in the chip design software industry, having held various leadership positions at Cadence and Magma Design Automation. In conjunction with his promotion, Mr. Devgan's compensation package has been updated, including an increased base salary, bonus target, and amended severance terms. The company has also approved a substantial stock award tied to performance objectives and will provide relocation assistance. This strategic appointment signals Cadence's continued focus on leveraging internal talent for key leadership positions and aligning executive incentives with company performance.

Key Highlights

  • 1Anirudh Devgan appointed President of Cadence, effective November 16, 2017.
  • 2Lip-Bu Tan transitions from President to continue solely as CEO and Director.
  • 3Mr. Devgan's annualized base salary increased to $500,000 with a bonus target of 100%.
  • 4Severance package amended to provide 100% (no Change in Control) or 150% (with Change in Control) of annual base salary.
  • 5Mr. Devgan awarded incentive stock award valued at approximately $2,000,000, vesting over three years based on performance.
  • 6Cadence will provide relocation assistance, including a monthly allowance for temporary housing and moving expense reimbursement.
  • 7No undisclosed arrangements, understandings, or reportable transactions involving Mr. Devgan.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce a significant executive leadership change: the appointment of Anirudh Devgan as President of Cadence Design Systems, Inc., and the corresponding changes in executive roles.

Lip-Bu Tan has resigned from his position as President of Cadence, but he will continue to serve in his other executive roles as Chief Executive Officer and a director of the company.

Anirudh Devgan's base salary has been increased to $500,000, and he is eligible for a bonus targeted at 100% of his base salary. His severance package has also been enhanced, and he received a performance-based stock award valued at approximately $2,000,000.

Yes, Cadence is providing Mr. Devgan with a monthly allowance of $18,000 for temporary living quarters for up to ten months or until his relocation is complete, and will reimburse him for up to $40,000 in moving expenses.