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CADENCE DESIGN SYSTEMS INC 8-K Report, Executive Changes (Mar 21, 2018)

Reports
Leadership Changes
Filing Date
Filed March 21, 2018
Period End
March 15, 2018
Security
CDNS
In the record · 2016–202610-K1210-Q328-K98

CDNS filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 98 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Feb ’16Feb ’16
  2. Auditor change8-K · Mar ’20Mar ’20
  3. Leadership change8-K · Jan ’22Jan ’22
  4. Leadership change8-K · May ’26May ’26

01—Abstract

Summary

Summary of the 8-K filed March 21, 2018. Cited figures are marked; the original filing is the authoritative source.

Cadence Design Systems, Inc. (CDNS) filed an 8-K on March 21, 2018, detailing amendments to the employment agreement of its Chief Executive Officer, Lip-Bu Tan.

The key change involves an increase in Mr. Tan's base salary to $725,000a annually, along with eligibility for a target incentive bonus of 125% of his base salary under the Senior Executive Bonus Plan. This compensation adjustment signals continued confidence in executive leadership and alignment with performance incentives. Furthermore, the severance package for Mr. Tan has been enhanced.

In the event of termination without 'Cause' or a 'Constructive Termination' (as defined in the agreement), he will receive a lump-sum payment equivalent to 125%b of his annual base salary. This amount increases to 187.5% of his annual base salary if such termination occurs in connection with a 'Change in Control.' These updated provisions provide greater financial security to the CEO under specific separation scenarios, particularly those related to corporate control transitions.

02—Key points

Key Highlights

  1. Lip-Bu Tan, CEO of Cadence Design Systems, Inc., received an amendment to his employment agreement.
  2. Mr. Tan's annualized base salary has been increased to $725,000.
  3. He is eligible to earn an incentive bonus targeted at 125% of his base salary.
  4. Severance payment for termination without 'Cause' or 'Constructive Termination' (not related to a Change in Control) increased to 125% of annual base salary.
  5. Severance payment for termination without 'Cause' or 'Constructive Termination' (related to a Change in Control) increased to 187.5% of annual base salary.
  6. The amendments were approved by the Compensation Committee of the Board of Directors on March 15, 2018.

03—Questions

Frequently Asked Questions

  1. What is the primary purpose of this 8-K filing?

    This 8-K filing announces amendments to the employment agreement of Cadence's CEO, Lip-Bu Tan, specifically concerning his base salary, incentive bonus, and severance package.

  2. How has the CEO's compensation changed?

    The CEO's annualized base salary has been increased to $725,000, and he is now eligible for an incentive bonus targeted at 125% of his base salary.

  3. What are the updated severance terms for the CEO?

    The severance payment has been increased to 125% of his annual base salary for a termination without 'Cause' or a 'Constructive Termination' not related to a 'Change in Control.' If such a termination occurs in connection with a 'Change in Control,' the severance payment increases to 187.5% of his annual base salary.

  4. When did these changes take effect?

    The amendments to the employment agreement were approved by the Compensation Committee on March 15, 2018.

04—Continue

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