Summary
Lam Research Corporation (LRCX) filed an 8-K on December 15, 2006, to announce a new Employment Agreement with its Executive Chairman, James W. Bagley. The agreement, effective through March 31, 2009, details his continued service and compensation, which is a key focus of this filing. Investors should note the terms of his remuneration and the provisions related to potential termination of his employment, as these could have implications for the company's executive compensation structure and future financial obligations. The agreement outlines a base salary of $240,000 annually for Mr. Bagley. A significant component is a $2.5 million lump sum payment due upon completion of the agreement's term, contingent on his adherence to confidentiality and noncompetition clauses. The filing also specifies terms for continued eligibility for this payment if his employment is terminated for reasons other than cause. Furthermore, it details provisions for payment of his base salary through the agreement's end in cases of involuntary termination without cause, death, or disability. These details are crucial for understanding executive incentives and potential financial commitments.
Key Highlights
- 1Lam Research Corporation entered into a new Employment Agreement with Executive Chairman James W. Bagley.
- 2The agreement extends Mr. Bagley's service as Executive Chairman through March 31, 2009.
- 3Mr. Bagley will receive an annualized base salary of $240,000.
- 4A $2.5 million lump sum compensation payment is stipulated, payable upon completion of the agreement's term, subject to confidentiality and noncompetition provisions.
- 5The agreement outlines provisions for continued eligibility for the $2.5 million payment in the event of termination for reasons other than cause.
- 6In cases of involuntary termination (not for cause), death, or disability, his base salary will be paid through the end of the agreement term.