01—Abstract
Summary
Summary of the 8-K filed October 12, 2021. Cited figures are marked; the original filing is the authoritative source.
NXP Semiconductors N.V.
(NXPI) has announced a key executive change, appointing Bill Betz as the new Executive Vice President and Chief Financial Officer (CFO), effective immediately as of October 11, 2021. Mr. Betz transitions from his previous role as Senior Vice President, Business Finance, into this critical leadership position. This appointment is accompanied by a comprehensive employment agreement detailing his compensation and severance provisions, signaling a strategic move in the company's financial leadership.
This transition also marks the stepping down of former CFO Peter Kelly from his role, though he will remain with the company in an Executive Vice President capacity until his planned retirement on February 28, 2022. Mr. Kelly's continued involvement will facilitate a smooth handover to Mr. Betz and provide ongoing support to the CEO. Investors should note the details of Mr. Betz's compensation package, including base salary, incentive targets, and a significant equity award, as well as the severance terms outlined in his employment agreement, particularly in the context of a change of control.
02—Key points
Key Highlights
- Bill Betz appointed Executive Vice President and Chief Financial Officer (CFO), effective immediately.
- Mr. Betz previously served as Senior Vice President, Business Finance.
- Mr. Betz's employment agreement includes a base salary of $450,000 and an annual incentive target of 80% of base salary.
- A long-term incentive equity grant valued at $2,500,000 has been awarded to Mr. Betz, comprising 30% time-based RSUs and 70% performance share units.
- Severance provisions are detailed, including one year's base salary for termination without cause, and 24 months' base salary and target bonus for termination within 12 months of a change of control or resignation for 'good reason'.
- Peter Kelly, the former CFO, has stepped down from his role but will remain an Executive Vice President until his retirement on February 28, 2022, to assist with the transition.
- Mr. Betz is subject to 12-month non-competition and non-solicitation restrictions post-termination.
03—Questions
Frequently Asked Questions
Who is the new Chief Financial Officer (CFO) of NXP Semiconductors?
Bill Betz has been appointed as the new Executive Vice President and Chief Financial Officer (CFO) of NXP Semiconductors, effective immediately as of October 11, 2021. He was previously the Senior Vice President, Business Finance.
What is the compensation package for the new CFO, Bill Betz?
Bill Betz's compensation package includes a base salary of $450,000, an annual incentive target of 80% of his base salary, and eligibility for company benefit plans. He will also receive a long-term incentive equity grant valued at $2,500,000, structured as 30% time-based restricted share units and 70% performance share units.
What happens to the former CFO, Peter Kelly?
Peter Kelly has stepped down as CFO as of October 12, 2021. He will continue with NXP Semiconductors as an Executive Vice President until his planned retirement on February 28, 2022. In this capacity, he will provide transition assistance to Bill Betz and advise the CEO.
What are the severance terms for Bill Betz?
In the event of termination without cause, Bill Betz is entitled to a lump sum severance payment equal to one year's base salary and a pro-rata annual incentive bonus. If his employment is terminated within twelve months following a change of control or if he resigns for 'good reason' (without misconduct), he is entitled to 24 months' base salary and target bonus, plus 12 months of benefits continuation, subject to signing a release of claims.
04—Continue