Summary
Intuit Inc. (INTU) filed an 8-K on October 26, 2006, detailing two new compensation initiatives and one director departure. A Management Stock Purchase Program (MSPP) was approved, set to launch January 1, 2007, designed to boost executive stock ownership. This program allows directors and above (excluding the CEO) to defer up to 15% of their annual bonus into restricted stock units (RSUs), with Intuit providing a matching RSU. These RSUs will vest after three years, or upon death or disability. Furthermore, the Compensation Committee established the threshold performance goal for the fiscal year 2007 bonuses under the Senior Executive Incentive Plan (SEIP). This cash incentive plan ties executive compensation to performance, with a specific revenue target set as a condition for any bonus payout. The maximum bonus per participant is $5 million. The filing also announced the upcoming departure of director Donna L. Dubinsky, who will not seek re-election at the December 15, 2006 annual meeting due to personal reasons requiring her to spend significant time outside the Bay Area.
Key Highlights
- 1Intuit launches Management Stock Purchase Program (MSPP) starting January 1, 2007, to encourage management stock ownership.
- 2Under MSPP, eligible employees can defer up to 15% of their annual bonus into Restricted Stock Units (RSUs).
- 3Intuit will grant matching RSUs for employee deferrals, with vesting in three years, or upon death/disability.
- 4Performance goal for Fiscal Year 2007 bonuses under the Senior Executive Incentive Plan (SEIP) established.
- 5A specified revenue target is a condition for Fiscal Year 2007 SEIP bonus payouts.
- 6Maximum bonus payout under SEIP is $5 million per participant.
- 7Director Donna L. Dubinsky will not stand for re-election at the December 15, 2006 annual meeting.