Summary
Fortinet, Inc. (FTNT) announced a significant addition to its Board of Directors on September 22, 2015, with the appointment of Gary Locke. Mr. Locke, a former Governor of Washington State and U.S. Secretary of Commerce, brings considerable public sector and leadership experience to the cybersecurity firm. His appointment as a Class III director, with a term expiring at the 2018 annual meeting, is intended to bolster the board's expertise and governance. In connection with his appointment, Mr. Locke will receive a standard annual cash retainer of $40,000, paid quarterly, and is expected to be granted restricted stock units (RSUs). Notably, a change of control agreement ensures all his unvested equity awards will vest immediately prior to a change of control event. This appointment suggests a continued focus by Fortinet on strengthening its strategic oversight and corporate governance as it navigates the evolving cybersecurity landscape.
Key Highlights
- 1Appointment of Gary Locke to the Board of Directors, effective September 22, 2015.
- 2Mr. Locke will serve as a Class III director with his term expiring at the 2018 annual meeting.
- 3No existing arrangements or understandings preceded Mr. Locke's selection as director.
- 4Mr. Locke will receive an annual cash retainer of $40,000, paid quarterly, as per company policy.
- 5Restricted Stock Units (RSUs) are expected to be granted to Mr. Locke.
- 6A change of control agreement is in place, whereby all unvested equity awards will vest immediately prior to a change of control.
- 7Mr. Locke will enter into the company's standard indemnification agreement for non-executive directors.