8-KLeadership Changes

FIRST SOLAR, INC. 8-K Report, Executive Changes (Nov 17, 2009)

Filed November 17, 2009For Securities:FSLR

Summary

This 8-K filing from First Solar, Inc. announces the mutual departure of Executive Vice President and Corporate Secretary, John T. Gaffney, effective December 1, 2009. While Mr. Gaffney will receive compensation and benefits as per his employment agreement, including a pro-rated 2009 bonus, the key financial impact for investors is the estimated $6.9 million charge to net income in the fourth quarter of 2009. This severance arrangement was not previously factored into the company's guidance provided on October 28, 2009, indicating a potential negative revision to near-term earnings expectations.

Key Highlights

  • 1John T. Gaffney, Executive Vice President and Corporate Secretary, is departing First Solar, Inc. on December 1, 2009, by mutual agreement.
  • 2Mr. Gaffney will receive compensation and benefits according to his existing employment agreement.
  • 3A pro-rated annual bonus for 2009 will be paid to Mr. Gaffney, determined in line with the company's standard bonus program.
  • 4Mr. Gaffney remains bound by his previously executed non-competition, non-solicitation, confidentiality, and intellectual property agreements.
  • 5The severance arrangements are expected to result in a $6.9 million impact on net income for the fourth quarter of 2009.
  • 6This severance charge was not included in the company's previous financial guidance issued on October 28, 2009.

Frequently Asked Questions

The departure of Mr. Gaffney will result in an estimated charge of approximately $6.9 million to net income in the fourth quarter of 2009, related to severance arrangements.

No, this severance arrangement and its associated financial impact were not reflected in the guidance First Solar provided to investors on October 28, 2009.

Mr. Gaffney will continue to be bound by the terms of his non-competition, non-solicitation, confidentiality, and intellectual property agreements previously entered into with the Company.

Yes, Mr. Gaffney will receive an annual bonus for 2009, with the amount to be determined consistent with the Company's standard bonus program for all employees.