8-KLeadership ChangesExhibits & Filings

FAIR ISAAC CORP 8-K Report, Executive Changes (Jun 24, 2019)

Filed June 24, 2019For Securities:FICO

Summary

Fair Isaac Corporation (FICO) announced a significant leadership change in its finance department via an 8-K filing on June 24, 2019. Michael I. McLaughlin has been appointed as the new Executive Vice President and Chief Financial Officer (CFO), effective August 3, 2019. This appointment follows the retirement of the long-serving CFO, Michael Pung, who will retire on December 31, 2019. Mr. McLaughlin brings extensive experience from his previous roles at Morgan Stanley and BofA Securities, where he focused on technology corporate finance and enterprise systems coverage. The company has outlined a comprehensive compensation package for Mr. McLaughlin, including a base salary, performance-based cash incentives, and substantial initial equity awards. This transition signals a strategic move for FICO as it brings in new financial leadership with a strong background in technology finance, aiming to support its continued growth and innovation.

Key Highlights

  • 1Michael I. McLaughlin appointed as new Executive Vice President-Chief Financial Officer, effective August 3, 2019.
  • 2Current CFO, Michael Pung, to retire on December 31, 2019, after nine years in the role.
  • 3Mr. McLaughlin's prior experience includes Managing Director roles at Morgan Stanley and BofA Securities, focusing on technology finance.
  • 4Mr. McLaughlin will receive an annual base salary of $400,000, eligible for upward adjustment.
  • 5Potential for annual cash incentive awards ranging from 0% to 125% of base salary, with a target of 50%.
  • 6Initial equity award valued at approximately $5,000,000 in the form of Restricted Stock Units (RSUs) with four-year vesting.
  • 7Severance package includes one times base salary plus last paid annual incentive in case of termination without Cause or resignation for Good Reason.

Frequently Asked Questions

Michael I. McLaughlin has been appointed as the new Executive Vice President-Chief Financial Officer. His appointment is effective August 3, 2019.

Mr. McLaughlin will receive an annual base salary of $400,000, is eligible for annual cash incentives (0-125% of base, 50% target), and will receive an initial equity award of approximately $5,000,000 in RSUs with four-year vesting. He will also be eligible for future annual equity grants.

Mr. McLaughlin, 55, has a strong financial background, most recently serving as Managing Director and Head of Technology Corporate Finance at Morgan Stanley since 2007. Prior to that, he was Managing Director, Head of Enterprise Systems and Supply Chain Coverage at BofA Securities from 2004 to 2007.

Michael Pung, who has served as CFO for the past nine years, will retire from the Company on December 31, 2019.