8-KMaterial Agreements

MICRON TECHNOLOGY INC 8-K Report, Material Agreement (Dec 12, 2007)

Filed December 12, 2007For Securities:MU

Summary

This Form 8-K filing by Micron Technology, Inc. (MU) on December 12, 2007, primarily concerns a change related to executive compensation, specifically the acceleration of restricted stock vesting for its former Chief Financial Officer, W.G. Stover, Jr. Mr. Stover, who had announced his intention to resign in July 2007 and officially departed on November 29, 2007, had a severance agreement that included the lapsing of restrictions on certain restricted shares approximately one year after his resignation. The Compensation Committee of the Board of Directors elected to accelerate the lapsing of restrictions on these shares, including an additional block of shares, in recognition of Mr. Stover's nearly 20 years of service. This action was taken under the terms of his existing severance agreement and reflects a decision to grant him full ownership of these restricted shares earlier than originally stipulated.

Key Highlights

  • 1Acceleration of restricted stock vesting for former CFO, W.G. Stover, Jr., effective December 6, 2007.
  • 2Mr. Stover resigned from his position on November 29, 2007.
  • 3The acceleration benefits 27,640 shares originally subject to a one-year post-resignation vesting period.
  • 4An additional 18,427 shares held by Mr. Stover also had their restrictions accelerated.
  • 5The decision was made by the Compensation Committee in recognition of Mr. Stover's approximately 20 years of service.
  • 6This action is in accordance with Mr. Stover's existing severance agreement.
  • 7Mr. Stover did not enter into a new severance agreement like other officers due to his prior announcement of resignation.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report the acceleration of restricted stock vesting for Micron Technology's former Chief Financial Officer, W.G. Stover, Jr., as decided by the Compensation Committee of the Board of Directors.

The vesting of Mr. Stover's restricted stock accelerated in recognition of his approximately 20 years of service to the company and in accordance with the terms of his severance agreement, allowing him to gain full ownership of these shares sooner than originally scheduled.

A total of 46,067 shares were affected by the accelerated vesting: 27,640 shares that were due to vest one year after his resignation, and an additional 18,427 shares held by Mr. Stover.

No, this is not a new severance agreement. The acceleration was executed under the terms of Mr. Stover's existing severance agreement, as he had already announced his intention to resign prior to any potential renegotiation of severance terms.