8-KLeadership ChangesExhibits & Filings

DEXCOM INC 8-K Report, Executive Changes (Jun 20, 2007)

Filed June 20, 2007For Securities:DXCM

Summary

DexCom, Inc. (DXCM) filed an 8-K on June 20, 2007, reporting significant leadership changes. Effective June 19, 2007, Andrew P. Rasdal stepped down as President and CEO but will remain on the Board of Directors and serve as a consultant for three months, receiving a $100,000 consulting fee and a $300,000 separation payment. His stock options will also have accelerated vesting for an additional year. Concurrently, Terrance Gregg was appointed as the new President and CEO. Mr. Gregg brings extensive experience in the diabetes technology sector, having previously held leadership roles at MiniMed, Inc. and Medtronic, Inc., and is recognized for his contributions to diabetes research and advocacy. His compensation package includes a $400,000 annual salary, a performance bonus, a substantial stock option grant, and relocation assistance. The filing also details severance and change-of-control provisions for Mr. Gregg.

Key Highlights

  • 1Andrew P. Rasdal has resigned as President and CEO, effective June 19, 2007.
  • 2Andrew P. Rasdal will receive a $300,000 separation payment and a $100,000 consulting fee for three months.
  • 3Andrew P. Rasdal's stock options will receive an additional year of vesting acceleration.
  • 4Terrance Gregg has been appointed as the new President and CEO.
  • 5Terrance Gregg's compensation includes a $400,000 base salary, potential bonus, and a significant stock option grant.
  • 6Terrance Gregg has a strong background in the diabetes technology industry, including previous roles at MiniMed and Medtronic.
  • 7The filing outlines specific severance and change-of-control provisions for the new CEO, Terrance Gregg.

Frequently Asked Questions

The immediate financial impact includes a $300,000 separation payment and $100,000 in consulting fees to Mr. Rasdal. Additionally, the company will recognize the accelerated vesting of his stock options as an expense.

Terrance Gregg has a deep and relevant background in the diabetes technology field, having served in executive roles at MiniMed and Medtronic. His experience is expected to be highly valuable as DexCom focuses on its continuous glucose monitoring technology.

Mr. Gregg will receive an annual base salary of $400,000, a performance bonus of up to 50% of his base salary, and an option to purchase 1,355,000 shares of common stock, vesting over 36 months. He also receives relocation assistance and reimbursement for home closing costs.

Yes, the offer letter includes provisions for accelerated vesting of Mr. Gregg's stock options and other awards in the event of a change of control of the company or if he is terminated without cause within a specified period around a change of control.