Summary
Intuit Inc. filed an 8-K report on October 5, 2007, announcing key aspects of the employment agreement for Brad D. Smith, who is set to become President and Chief Executive Officer effective January 1, 2008. The filing details his compensation package, including an annual base salary of $800,000, eligibility for a 120% target annual bonus, a significant nonqualified stock option grant, and restricted stock units. This report also outlines specific vesting schedules for Mr. Smith's equity awards, which are tied to his performance and tenure, and details severance benefits available under certain termination scenarios, including change in control, involuntary termination, or termination without cause. These benefits include a lump sum severance payment and pro-rata acceleration of equity vesting. Investors should note that the full terms of his employment agreement are available as an exhibit to this filing.
Key Highlights
- 1Brad D. Smith appointed as President and CEO, effective January 1, 2008.
- 2Mr. Smith to receive an annual base salary of $800,000, effective October 1, 2007.
- 3Eligibility for a target annual bonus of 120% of his base salary.
- 4Grant of 260,000 nonqualified stock options with a five-year vesting schedule.
- 5Grant of 130,000 restricted stock units with a four-year vesting schedule.
- 6Severance package includes 12 months' salary and target bonus upon specific termination events (change in control, termination without cause/involuntary termination).
- 7Mr. Smith to receive financial and legal assistance reimbursement for 2007 and 2008.