Summary
Fortinet, Inc. (FTNT) announced a significant executive change via an 8-K filing on November 27, 2013. Ahmed Rubaie resigned from his dual roles as Chief Financial Officer (CFO) and Chief Operating Officer (COO), with his departure effective December 5, 2013. The company has initiated searches for both a new CFO and a senior operations executive to fill these critical positions. In response to Mr. Rubaie's resignation, Fortinet has appointed Nancy Bush as interim CFO. Ms. Bush brings relevant experience, having previously served as the company's Vice President, Worldwide Corporate Controller and also as interim CFO from September 2012 to April 2013. Her appointment is effective immediately, and she will receive an additional $10,000 in base salary per month during her interim tenure. The filing also details the separation agreement with Mr. Rubaie, outlining severance payments, retention bonus, benefits continuation, and accelerated vesting of a portion of his restricted stock units.
Key Highlights
- 1Ahmed Rubaie resigned as CFO and COO, effective December 5, 2013.
- 2Nancy Bush appointed as interim CFO, effective immediately.
- 3Ms. Bush has prior experience as Fortinet's Corporate Controller and interim CFO.
- 4Fortinet is conducting separate searches for a permanent CFO and a senior operations executive.
- 5Mr. Rubaie's separation agreement includes salary continuation, a retention bonus, health benefits, and accelerated RSU vesting.
- 6The company will pay Mr. Rubaie approximately $562,500 in cash for a portion of his RSUs that would have vested in May 2014.
- 7Ms. Bush will receive an additional $10,000 per month in base salary during her interim CFO role.