01—Abstract
Summary
Summary of the 8-K filed April 8, 2022. Cited figures are marked; the original filing is the authoritative source.
Micron Technology, Inc. announced a significant leadership change with the appointment of Mark J.
Murphy as the new Executive Vice President and Chief Financial Officer, effective April 18, 2022. Mr. Murphy brings extensive financial leadership experience, having previously served as CFO for Qorvo, Inc. and in senior financial roles at Delphi Automotive PLC and Praxair, Inc. This appointment marks a transition from Sumit Sadana, who will continue his role as Executive Vice President and Chief Business Officer. Murphy's compensation package reflects his senior role, including a base salary of $700,000,a participation in an incentive plan with a target payout of 110%, a $250,000 sign-on bonus, and substantial equity awards totaling $17,000,000 ($7 million target for fiscal 2022 and $10 million new hire award).
A significant portion of these equity awards are performance-based, aligning his compensation with company performance. The filing also details severance benefits provided to Mr. Murphy under specific termination scenarios, including those related to involuntary termination without cause or a change in control.
02—Key points
Key Highlights
- Micron Technology appointed Mark J. Murphy as its new Chief Financial Officer (CFO) effective April 18, 2022.
- Mr. Murphy has a strong financial background, including previous CFO roles at Qorvo, Inc. and Delphi Automotive PLC.
- Sumit Sadana will transition from Interim CFO to his permanent role as Executive Vice President and Chief Business Officer.
- Mr. Murphy's annual base salary is set at $700,000.
- He is eligible for an annual incentive plan with a target payout of 110% of his base salary.
- Mr. Murphy will receive a $250,000 sign-on bonus and significant equity awards, including a $7 million target fiscal 2022 award and a $10 million new hire award, with both time-vested and performance-based components.
- The filing outlines severance benefits for Mr. Murphy in cases of involuntary termination without cause or termination following a change in control.
03—Questions
Frequently Asked Questions
Who has been appointed as the new Chief Financial Officer of Micron Technology?
Mark J. Murphy has been appointed as the new Executive Vice President and Chief Financial Officer of Micron Technology, effective April 18, 2022.
What is Mr. Murphy's compensation package?
Mr. Murphy will receive an annual base salary of $700,000, a target incentive payout of 110% of his base salary, a $250,000 sign-on bonus, and equity awards totaling approximately $17 million ($7 million for fiscal 2022 and $10 million new hire award).
What are the key components of Mr. Murphy's equity awards?
Mr. Murphy's equity awards consist of 50% time-vested restricted stock and 50% performance-based restricted stock. The time-vested portions vest over three years, while the performance-based portions are contingent on achieving specific performance criteria.
What severance benefits are provided to Mr. Murphy?
In the event of an involuntary termination without cause, or a termination within 12 months of a change in control (under specific conditions), Mr. Murphy is entitled to severance benefits including a cash payment (1x or 1.5x base salary), continued benefits, and pro-rated or accelerated vesting of equity awards, subject to signing a release of claims and compliance with non-compete/non-solicitation agreements.
04—Continue