Summary
KLA Corporation (KLAC) filed an 8-K on February 23, 2005, to announce a material definitive agreement with its President and CEO, Kenneth L. Schroeder. This new agreement, effective February 23, 2005, replaces and supersedes his prior employment and non-competition agreements. The key changes focus on the terms of his post-full-time employment and equity award vesting, aiming to provide continued incentive and retention for the CEO.
Key Highlights
- 1KLA Corp entered into a new employment agreement with CEO Kenneth L. Schroeder, effective February 23, 2005.
- 2The new agreement supersedes and replaces Mr. Schroeder's previous retention and non-competition agreements.
- 3The term for Mr. Schroeder's part-time employment following his full-time role has been extended from three to five years.
- 4All equity awards will now continue vesting during his part-time employment, a change from the prior agreement's limitation.
- 5Equity awards granted on or after September 21, 2004, will have specific termination, acceleration, and exercisability provisions based on employment cessation circumstances.
- 6The 'double-trigger' vesting acceleration protection for change-in-control events now includes all equity awards, not just stock options.