8-KLeadership ChangesExhibits & Filings

INTUIT INC. 8-K Report, Executive Changes (Aug 17, 2009)

Filed August 17, 2009For Securities:INTU

Summary

This 8-K filing from Intuit Inc. (INTU) on August 17, 2009, primarily details significant changes and grants related to executive compensation, specifically Restricted Stock Units (RSUs). The company issued new performance-based and time-based RSUs to its executive officers on August 11, 2009, as part of its annual review process. A substantial portion of these new grants are tied to achieving specific revenue growth and return on invested capital (ROIC) targets for the fiscal year ending July 31, 2010, signaling a focus on future performance and operational improvements. Furthermore, Intuit's Compensation Committee amended the performance goals for existing 2008 RSU grants due to the challenging economic climate impacting the fiscal year 2009 results. These amendments reset performance targets for the same key metrics (revenue growth and ROIC) for the fiscal year ending July 31, 2010, demonstrating the company's commitment to aligning executive incentives with business objectives even amidst economic uncertainty. Investors should note the emphasis on tying executive compensation to tangible financial performance indicators.

Key Highlights

  • 1Intuit granted new Restricted Stock Units (RSUs) to executive officers on August 11, 2009.
  • 2Approximately 55% of the new RSUs are performance-based, vesting based on achieving specific revenue growth and ROIC goals for fiscal year 2010.
  • 3The remaining 45% of the new RSUs are time-based, vesting over 2011 and 2012.
  • 4The Compensation Committee amended the performance goals for 2008 RSU grants due to missed targets in fiscal year 2009.
  • 5Amended 2008 RSUs will also vest based on achieving 2010 revenue growth and ROIC goals, providing continued executive incentive.
  • 6Total grants included approximately 123,000 performance-based and 98,000 time-based RSUs for senior executives in 2009.
  • 7Amendments to 2008 RSUs affected approximately 151,000 RSUs held by senior executives.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose material information regarding Intuit's executive compensation, specifically the grants of new Restricted Stock Units (RSUs) to executive officers and amendments to previously issued RSUs.

The 2009 RSUs are split into two components: approximately 55% are performance-based, tied to achieving specific revenue growth and return on invested capital (ROIC) targets for the fiscal year ending July 31, 2010. The remaining 45% are time-based, vesting over two years (2011 and 2012).

The performance goals for the 2008 RSUs were amended because Intuit did not achieve its original performance targets for the fiscal year ended July 31, 2009, likely due to the prevailing economic downturn. The amendments reset these goals to align with future performance expectations for fiscal year 2010.

The key financial metrics for vesting are year-over-year revenue growth and return on invested capital (ROIC) for the fiscal year ending July 31, 2010.