Summary
Cognizant Technology Solutions Corporation (CTSH) filed an 8-K report on September 5, 2008, detailing compensatory arrangements for its named executive officers. The Compensation Committee of the Board of Directors granted restricted stock units (RSUs) to key executives, including the CEO, CFO, and COOs. These grants are intended to incentivize and retain top talent within the company, aligning executive interests with those of shareholders through long-term equity awards.
Key Highlights
- 1Cognizant granted restricted stock units (RSUs) to certain named executive officers on September 4, 2008.
- 2The grants were made by the Compensation Committee of the Board of Directors.
- 3Key executives receiving awards include Francisco D’Souza (President and CEO), Gordon J. Coburn (CFO and COO), Rajeev Mehta (COO, Global Client Services), and Ramakrishnan Chandrasekaran (President and Managing Director, Global Delivery).
- 4The RSUs vest in three equal annual installments over three years, with full vesting occurring on the third anniversary of the grant date.
- 5The stock units are governed by the Company’s Amended and Restated 1999 Incentive Compensation Plan.
- 6This filing is a standard disclosure for executive compensation actions.
- 7The grants are designed to incentivize long-term performance and retention of executive leadership.
Frequently Asked Questions
The primary purpose of this 8-K filing is to disclose the grant of restricted stock units (RSUs) to certain named executive officers of Cognizant Technology Solutions Corporation, as part of their executive compensation arrangements.
Restricted stock units were granted to key executives, including Francisco D’Souza (President and CEO), Gordon J. Coburn (Chief Financial and Operating Officer and Treasurer), Rajeev Mehta (Chief Operating Officer, Global Client Services), and Ramakrishnan Chandrasekaran (President and Managing Director, Global Delivery).
The restricted stock units vest in three equal annual installments. Approximately 33.33% vest on the first anniversary of the grant date, another 33.33% on the second anniversary, and the remaining 33.34% on the third anniversary, meaning they will be fully vested after three years.
These equity grants are intended to align the interests of key executives with those of shareholders by providing long-term incentives. By linking executive compensation to the company's stock performance and requiring continued service for vesting, these grants aim to promote executive retention and drive long-term value creation for shareholders.