01—Abstract
Summary
Summary of the 8-K filed April 5, 2007. Cited figures are marked; the original filing is the authoritative source.
This Form 8-K filing by Ciena Corporation (CIEN) on April 5, 2007, primarily reports the planned resignation of its Senior Vice President, Finance, and Chief Financial Officer, Joseph R.
Chinnici. Mr. Chinnici announced his intention to resign on April 4, 2007, with his departure expected on or before December 31, 2007. The filing also details a separation agreement reached with Mr. Chinnici, outlining the compensation and benefits he will receive in connection with his departure and cooperation during the transition.
For investors, the key takeaway is the change in financial leadership at Ciena. While Mr. Chinnici's departure is planned for later in the year, the separation agreement specifies severance, accelerated vesting of equity awards, and continued benefits. Investors should monitor the company's search for a successor CFO and assess any potential impact on financial reporting or strategic direction during this transition period.
02—Key points
Key Highlights
- Joseph R. Chinnici, Senior Vice President, Finance and Chief Financial Officer, plans to resign.
- Mr. Chinnici's resignation is effective on or before December 31, 2007.
- Ciena has entered into a separation agreement with Mr. Chinnici.
- The separation agreement details compensation and benefits for Mr. Chinnici.
- Mr. Chinnici will continue to receive his salary and benefits until his successor starts.
- Upon termination, Mr. Chinnici will receive a lump sum severance payment of $350,000 plus a bonus.
- Fifty percent of Mr. Chinnici's unvested stock options and RSUs will vest immediately upon termination.
03—Questions
Frequently Asked Questions
Who is leaving Ciena Corporation and what is their role?
Joseph R. Chinnici, who holds the position of Senior Vice President, Finance and Chief Financial Officer, has announced his plans to resign from Ciena Corporation.
When will Mr. Chinnici's resignation be effective?
Mr. Chinnici plans to resign on or before December 31, 2007. He will continue as CFO until his successor commences employment.
What financial compensation will Mr. Chinnici receive upon his departure?
Upon termination, Mr. Chinnici will receive a lump sum severance payment equal to his $350,000 annual salary, and an annualized bonus payment equivalent to 75% of his base salary. Additionally, 50% of his unvested stock options and restricted stock units will become immediately vested.
What other benefits will Mr. Chinnici receive?
Ciena will continue to provide Mr. Chinnici with medical and dental benefits until December 31, 2008, or until he obtains comparable coverage elsewhere. He will also receive tax preparation services and continued coverage under the company's directors and officers insurance policy.
04—Continue