8-KMaterial Agreements

FAIR ISAAC CORP 8-K Report, Material Agreement (Dec 23, 2005)

Filed December 23, 2005For Securities:FICO

Summary

Fair Isaac Corporation (FICO) filed an 8-K on December 23, 2005, detailing executive compensation decisions made on December 20, 2005. The key event reported is the award of an $850,000 bonus to CEO Thomas G. Grudnowski for fiscal year 2005. This bonus was granted based on the company's strong financial performance, including net income, EPS, and revenue, as well as Mr. Grudnowski's success in strategic initiatives such as leadership expansion and new market development. Additionally, the filing outlines the performance objectives for Mr. Grudnowski's fiscal year 2006 bonus. Approximately 80% of his 2006 bonus will be tied to financial metrics like revenue, net income, and EPS, while the remaining 20% will be based on non-financial goals. These include enhancing leadership capacity, pursuing growth through new markets and acquisitions, and strengthening customer relationships. This indicates a continued focus on both financial results and strategic growth for the upcoming fiscal year.

Key Highlights

  • 1CEO Thomas G. Grudnowski awarded an $850,000 bonus for fiscal year 2005.
  • 2The bonus award was based on the company's strong financial performance (net income, EPS, revenue) and CEO's strategic achievements.
  • 3Key strategic achievements for FY2005 included expanding executive leadership and developing new vertical market growth opportunities.
  • 4Performance objectives for the CEO's fiscal year 2006 bonus have been established.
  • 580% of the FY2006 bonus will be tied to financial performance (revenue, net income, EPS).
  • 620% of the FY2006 bonus will be linked to non-financial goals, including leadership, new markets, acquisitions, and customer relationships.

Frequently Asked Questions

The CEO, Thomas G. Grudnowski, was awarded a bonus of $850,000 for fiscal year 2005.

The bonus was based on the company's strong financial performance, specifically net income, earnings per share (EPS), and revenue components from fiscal year 2004, as well as the CEO's achievement of strategic goals such as expanding executive leadership and developing new market opportunities.

For fiscal year 2006, 80% of the bonus will be based on financial performance objectives (revenue, net income, EPS) from fiscal year 2005. The remaining 20% will be based on non-financial goals, including leadership expansion, pursuing growth through new markets and acquisitions, and enhancing existing customer relationships.

No, this filing does not indicate any changes to the CEO's employment agreement dated January 30, 2004. It details the bonus awarded under the existing terms and outlines the performance objectives for the subsequent bonus period, consistent with that agreement.