Summary
Synopsys Inc. (SNPS) filed an 8-K on February 9, 2021, to disclose the adoption of its new Executive Severance Benefit and Transition Plan (Severance Plan) effective February 7, 2021. This plan provides severance benefits to designated key employees, including all current executive officers, with the notable exceptions of Drs. de Geus and Chan, in cases of termination without cause or resignation for good reason. The plan aims to offer a safety net for key personnel, potentially enhancing employee retention and stability. The severance package includes a cash payment equivalent to 12 months of base salary and COBRA premiums, along with a six-month acceleration of time-based equity awards. Additionally, participants may receive a pro-rated annual cash incentive award. These benefits are contingent upon certain conditions, including cooperation with the company for up to nine months of part-time employment and adherence to non-compete and non-solicitation agreements. Investors should note that this plan specifically addresses situations outside of a change of control.
Key Highlights
- 1Synopsys adopted an Executive Severance Benefit and Transition Plan (Severance Plan) effective February 7, 2021.
- 2The Severance Plan covers designated key employees, including all current executive officers, except Drs. de Geus and Chan.
- 3Benefits are triggered by termination without cause or resignation for good reason (not change of control).
- 4Severance includes 12 months of base salary and COBRA premium coverage.
- 5Six months of acceleration for time-based equity awards is provided.
- 6Pro-rated annual cash incentive awards may be earned based on actual results or target.
- 7Severance benefits are subject to conditions, including potential part-time employment and adherence to non-compete/non-solicitation clauses.