Summary
Qualcomm Incorporated (QCOM) announced the appointment of Jeffrey W. Henderson to its Board of Directors, effective January 12, 2016. This appointment is a direct result of the Cooperation Agreement previously entered into with JANA Partners LLC on July 21, 2015. Mr. Henderson's term will extend until the next annual meeting of stockholders, and his compensation will align with the company's existing non-employee director compensation program, which includes a grant of deferred stock units (DSUs). This move signifies Qualcomm's engagement with activist investors, as the appointment appears to be a concession to JANA Partners. Investors should monitor the impact of this new director's influence on board decisions and strategic direction, particularly given his affiliation with an activist hedge fund. The Board has yet to assign Mr. Henderson to any committees, leaving his specific areas of focus within the board structure to be determined.
Key Highlights
- 1Appointment of Jeffrey W. Henderson to the Board of Directors on January 12, 2016.
- 2Mr. Henderson's appointment is pursuant to the Cooperation Agreement with JANA Partners LLC dated July 21, 2015.
- 3His term as director expires at the Company's next annual meeting of stockholders.
- 4Mr. Henderson will receive compensation as a non-employee director under the Company's standard program.
- 5He was granted 731 deferred stock units (DSUs) upon appointment, reflecting a pro-rata portion of a full year's award.
- 6The Board has not yet determined committee assignments for Mr. Henderson.
- 7This appointment suggests a response to activist investor pressure from JANA Partners.