8-KLeadership ChangesExhibits & Filings

INTUIT INC. 8-K Report, Executive Changes (Dec 17, 2007)

Filed December 17, 2007For Securities:INTU

Summary

This 8-K filing from Intuit Inc. on December 17, 2007, details key decisions made at the Annual Meeting of Stockholders on December 14, 2007, primarily concerning executive compensation and equity plans. The company's stockholders approved amendments to the 2005 Equity Incentive Plan, extending its term and increasing the number of shares available for awards. Additionally, the Intuit Senior Executive Incentive Plan was adopted. These approvals are significant for investors as they relate to the company's ability to attract, retain, and incentivize its executive talent through equity and performance-based compensation. The amendments ensure continued availability of equity awards, while the new Senior Executive Incentive Plan is designed to align executive pay with company performance, adhering to Section 162(m) of the Internal Revenue Code to maintain tax deductibility for certain compensation.

Key Highlights

  • 1Stockholders approved an amendment to the 2005 Equity Incentive Plan, extending its term by one year to December 9, 2009.
  • 2An additional 10,000,000 shares were added to the 2005 Equity Incentive Plan to cover future awards.
  • 3The Intuit Senior Executive Incentive Plan (SEIP) was adopted, designed to comply with Section 162(m) of the Internal Revenue Code.
  • 4The 2005 Equity Incentive Plan allows for various award types including stock options, restricted stock, and stock appreciation rights.
  • 5The SEIP is structured to provide performance-based compensation to executive officers, with awards tied to specific business criteria and performance goals.
  • 6Awards under the SEIP are capped at $5,000,000 per participant annually.
  • 7The SEIP allows for performance goals based on metrics such as revenue, operating income, net income, and earnings per share.

Frequently Asked Questions

The primary outcomes were the stockholder approval of amendments to the 2005 Equity Incentive Plan to extend its term and add shares, and the adoption of the Intuit Senior Executive Incentive Plan.

These changes are important because they impact Intuit's ability to attract, retain, and motivate key executives. The equity plan ensures continued ability to grant stock-based compensation, while the new incentive plan aims to link executive pay to company performance, potentially aligning executive and shareholder interests and ensuring tax deductibility of compensation for the company.

The plan's term was extended to December 9, 2009, and 10,000,000 additional shares were made available for awards. It allows for various award types like stock options, restricted stock, and stock appreciation rights, with specific limits on awards to individual participants and restrictions on repricing 'underwater' options.

The SEIP is designed to provide performance-based compensation to executive officers. Awards are determined by the Compensation and Organizational Development Committee based on pre-established performance goals and business criteria (e.g., revenue, net income) for a defined 'Performance Period'. Awards are generally paid in cash.