8-KMaterial Agreements

FAIR ISAAC CORP 8-K Report, Material Agreement (Sep 1, 2005)

Filed September 1, 2005For Securities:FICO

Summary

This Form 8-K filing from Fair Isaac Corporation (FICO) on September 1, 2005, reports on the formalization of a new cash compensation program for its non-employee directors, effective August 29, 2005. The program outlines specific annual retainers and meeting attendance fees for directors, with differentiated compensation for the Board Chair and committee chairs. This change is important for investors to understand how the company compensates its independent board members, which can influence director independence and engagement. The key details include an annual retainer of $20,000 for regular outside directors, with additional fees for board and committee meeting attendance. The Board Chair receives a higher annual retainer of $40,000 plus meeting fees. Furthermore, standing committee chairs are eligible for an additional annual retainer of $5,000 and a mid-year fee based on when they are appointed to the chair position, reflecting increased responsibilities.

Key Highlights

  • 1Formalization of cash compensation program for non-employee directors.
  • 2Effective date of the new program: August 29, 2005.
  • 3Annual retainer for non-Chair outside directors: $20,000.
  • 4Per-meeting attendance fees for board and committee meetings for all outside directors.
  • 5Annual retainer for the Board Chair: $40,000.
  • 6Additional annual retainer of $5,000 for chairs of standing Board committees.
  • 7Introduction of mid-year committee chair fees based on appointment timing.

Frequently Asked Questions

The primary purpose of this 8-K filing is to formally document and disclose the new cash compensation program for Fair Isaac Corporation's non-employee directors, which was approved and effective as of August 29, 2005.

Regular outside directors receive an annual retainer of $20,000, plus fees for attending board and committee meetings. The Board Chair receives a higher annual retainer of $40,000, also with additional fees for meeting attendance.

Yes, directors who chair a standing Board committee are entitled to an additional annual retainer of $5,000. They may also receive a mid-year fee upon appointment as committee chair, with the amount varying based on how much time remains until the next annual meeting of stockholders.

This filing specifically formalizes the cash compensation structure for non-employee directors. It details the existing practices into a defined program, rather than indicating a broad shift in the company's overall compensation philosophy.