Who is the new Chief Financial Officer, and what is their background?

Andrew H. Del Matto has been appointed as the new CFO, effective January 2, 2014. He brings extensive financial leadership experience from Symantec Corporation, where he held positions including Senior Vice President and Chief Accounting Officer, and most recently served as acting CFO. His background also includes experience at Inktomi Corporation, SGI Corporation, and KPMG LLP.

What is the compensation package for the new CFO?

Mr. Del Matto will receive an annual base salary of $380,000. He is also eligible for an annual bonus with a target of 65% of his base salary. Additionally, he will receive a $50,000 signing bonus (subject to completing two years of employment) and is set to receive 120,000 restricted stock units (RSUs) and 25,000 performance-based restricted stock units (PBRSUs), subject to board approval and vesting conditions.

What are the terms of the Change of Control Severance Agreement?

The agreement outlines severance benefits if Mr. Del Matto's employment is terminated by the company without Cause or by him for Good Reason, particularly in the event of a Change of Control. Benefits can include multiple months of base salary and continued health benefits, along with accelerated vesting of equity awards. Specific terms vary based on the timing relative to a Change of Control and the length of employment.

Are there any specific conditions attached to the new CFO's appointment or compensation?

Mr. Del Matto's appointment is effective January 2, 2014. The signing bonus is contingent on completing two years of employment. The stock grants (RSUs and PBRSUs) are subject to Board approval, performance criteria for PBRSUs, and specified vesting schedules. The severance benefits are also tied to specific termination circumstances and the execution of a release of claims.

FTNT 8-K: Leadership Changes

Summary

Fortinet, Inc. (FTNT) announced the appointment of Andrew H. Del Matto as its new Chief Financial Officer (CFO), effective January 2, 2014. Mr. Del Matto brings significant financial leadership experience from his tenure at Symantec Corporation, where he served as Senior Vice President and Chief Accounting Officer, and most recently as acting CFO. His background includes extensive experience in corporate finance, accounting, financial planning, and analysis, as well as prior roles at Inktomi and SGI, and starting his career at KPMG. This appointment is accompanied by a comprehensive compensation package designed to attract and retain Mr. Del Matto. This includes a base salary of $380,000, eligibility for an annual bonus, a signing bonus, and significant equity awards in the form of restricted stock units (RSUs) and performance-based restricted stock units (PBRSUs). Additionally, a Change of Control Severance Agreement has been put in place, outlining benefits in the event of specific termination scenarios, particularly around a change of control event, providing financial security and alignment with shareholder interests.

Key Highlights

1Appointment of Andrew H. Del Matto as Chief Financial Officer, effective January 2, 2014.
2Mr. Del Matto has substantial experience from Symantec Corporation, including recent acting CFO role.
3Annual base salary of $380,000 for Mr. Del Matto.
4Eligibility for an annual bonus targeted at 65% of base salary.
5Signing bonus of $50,000, contingent upon two years of employment.
6Grant of 120,000 RSUs and 25,000 PBRSUs, subject to board approval and vesting schedules.
7Comprehensive Change of Control Severance Agreement is in place, detailing benefits for specific termination events.

Fortinet, Inc. 8-K Report, Executive Changes (Dec 20, 2013)

Summary

Key Highlights

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