Summary
This 8-K filing from KLA-Tencor Corporation (KLAC) on September 24, 2004, primarily discloses a material definitive agreement concerning the grant of a significant stock option to its President and CEO, Ken Schroeder. The grant includes 325,800 shares at an exercise price of $41.79, aligning with the closing stock price on the grant date. This action signals the company's commitment to retaining and incentivizing key executive leadership.
Key Highlights
- 1KLA-Tencor Corporation (KLAC) granted its President and CEO, Ken Schroeder, stock options for 325,800 shares.
- 2The exercise price for these options is $41.79 per share, equal to the closing price on September 21, 2004.
- 3The stock options have a multi-tiered vesting schedule, with portions vesting over five years and specific tranches tied to future dates or retirement.
- 4Certain option tranches offer accelerated vesting upon Mr. Schroeder's retirement under specific conditions.
- 5Vesting of all options is contingent on Mr. Schroeder continuing to provide services to the company.
- 6These options have an expiration period of five years from termination of employment or ten years from the grant date.
Frequently Asked Questions
The main purpose of this 8-K filing is to disclose a material definitive agreement related to the grant of stock options to KLA-Tencor's President and CEO, Ken Schroeder.
The stock option grant covers an aggregate of 325,800 shares of KLA-Tencor's common stock.
The exercise price for the stock options is $41.79 per share, which was the closing selling price of the company's common stock on the grant date, September 21, 2004.
The options have a staggered vesting schedule. Some vest over five years from the grant date, while others become exercisable on the later of July 1, 2007, or one year after Mr. Schroeder's retirement as CEO. Specific conditions apply for acceleration of vesting.