8-KLeadership ChangesExhibits & Filings

Lumentum Holdings Inc. 8-K Report, Executive Changes (Feb 4, 2016)

Filed February 4, 2016For Securities:LITE

Summary

Lumentum Holdings Inc. (LITE) announced on February 4, 2016, the departure of Craig Cocchi, Senior Vice President of Operations, effective April 1, 2016. This is a standard executive departure, and the company has entered into a separation agreement with Mr. Cocchi. Investors should note the terms of the separation agreement, which include severance benefits outlined in the company's 2015 Change in Control and Severance Benefits Plan. These benefits include accelerated vesting of certain equity awards, a cash payment equivalent to nine months of base salary, and continued COBRA benefits for up to nine months, contingent upon Mr. Cocchi not being terminated for cause and signing a release of claims. The company has also filed the separation agreement as an exhibit to this 8-K.

Key Highlights

  • 1Departure of Senior Vice President of Operations, Craig Cocchi, effective April 1, 2016.
  • 2Separation agreement entered into with Mr. Cocchi.
  • 3Severance benefits are in accordance with the company's 2015 Change in Control and Severance Benefits Plan.
  • 4Key severance components include accelerated vesting of equity awards (9 months' time-based vesting), a lump sum cash payment equal to 9 months' base salary, and 9 months of company-paid COBRA.
  • 5Severance is contingent on Mr. Cocchi not being terminated for 'Cause' and signing a release of claims.
  • 6The separation agreement is filed as Exhibit 10.1 to the 8-K.
  • 7The 2015 Plan was previously filed as Exhibit 10.5 to an August 6, 2015 8-K.

Frequently Asked Questions

The 8-K filing does not provide specific reasons for Mr. Cocchi's departure, only that his employment will end on April 1, 2016, as per a separation agreement.

The primary financial impact will be the severance package provided to Mr. Cocchi, which includes accelerated equity vesting, a cash payment of 9 months' salary, and 9 months of COBRA coverage. These costs are expected to be recognized in accordance with the company's 2015 Plan.

Yes, Mr. Cocchi must not be terminated for 'Cause' as defined in the agreement, and he must sign a release of claims against the company.

The severance package is based on the '2015 Change in Control and Severance Benefits Plan,' but this filing itself does not indicate an actual change in control event has occurred or is imminent.