Why is Teradyne changing its CFO?

Teradyne states that Sanjay Mehta, CFO since 2019, is transitioning to an executive advisor role and plans to retire in 2026. Management says aligning leadership around AI, semiconductor, and industrial automation opportunities will help the company execute with focus and agility. The filing does not indicate a dispute or performance-related reason for the change.

Who is Michelle Turner and what is her relevant experience?

Turner, age 52, was Senior Vice President and CFO of L3Harris Technologies from January 2022 to December 2023. Earlier roles include CFO and Vice President of Enterprise Supply Chain at Johnson & Johnson (2017 to 2022), Vice President of Petroleum at BHP Billiton (2016 to 2017), and CFO of Raytheon's Space and Airborne Systems business (2007 to 2017), plus finance roles at Honeywell. She holds a B.S. in accounting from the University of South Florida and an MBA from Arizona State University.

What is Turner's compensation package?

Her offer letter provides a $640,000 annual base salary and an annual cash incentive with a 100% of base salary target, consistent with other executive officers. She will receive a $6.8 million target equity award on November 3, 2025, split among time-based RSUs, performance-based RSUs, and non-qualified stock options. She also receives $350,000 in one-time sign-on payments, including a $200,000 cash bonus and a $150,000 relocation lump sum.

What severance protections does Turner have?

Turner will enter the company's standard Executive Officer Change of Control Agreement. If she is terminated without cause or resigns for good reason from three months before to 24 months after a change in control, she receives two years of severance at her annual Model Compensation rate, a prorated target bonus for the termination year, full equity acceleration (performance awards at target), and two years of health, dental, and vision coverage. Benefits require a general release and continued compliance with restrictive covenants, and there is no tax gross-up.

Does the CFO change affect Teradyne's financial results or guidance?

The filing and press release do not disclose any changes to financial results, outlook, or guidance. The transition is presented as a planned succession, with Mehta remaining available to support 2026 capacity expansion. Investors should watch for any commentary on finance continuity in upcoming earnings calls and the company's 2026 capacity plans.

TER 8-K: Leadership Changes & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed October 28, 2025. Cited figures are marked; the original filing is the authoritative source.

Teradyne (NASDAQ: TER) announced a Chief Financial Officer transition, with Michelle Turner succeeding Sanjay Mehta as Vice President, Chief Financial Officer, and Treasurer effective November 3, 2025.

Turner will also serve as principal financial officer and principal accounting officer. Mehta, who has been CFO since 2019, will remain with the company as an executive advisor to support capacity expansion in Semiconductor Test, and plans to retire in 2026. His compensation is unchanged during the advisory period.

Turner brings substantial finance leadership experience, most recently as Senior Vice President and CFO of L3Harris Technologies (January 2022 to December 2023), and previously as CFO and Vice President at Johnson & Johnson's enterprise supply chain unit and as a CFO at Raytheon's Space and Airborne Systems business. Her compensation package includes a $640,000^a base salary, a 100% of base salary target annual cash incentive, a $6.8 million target equity award granted November 3, 2025 (mix of time-based RSUs, performance-based RSUs, and non-qualified stock options), and sign-on payments totaling $350,000 ($200,000 cash bonus plus a $150,000 relocation payment). She will also enter the company's standard Executive Officer Change of Control Agreement, which includes two years of severance, full equity acceleration (performance awards at target), and no tax gross-up.

For investors, this is a planned, orderly succession rather than a departure signaling financial stress. The filing does not disclose any changes to financial guidance or results. The main points to monitor are continuity in the finance organization during the transition and the company's capacity expansion plans for 2026 in its semiconductor test business, which management ties to accelerating AI and semiconductor demand.

02—Key points

Key Highlights

Michelle Turner succeeds Sanjay Mehta as CFO, Treasurer, principal financial officer, and principal accounting officer, effective November 3, 2025.
Sanjay Mehta, CFO since 2019, transitions to executive advisor with unchanged compensation and plans to retire in 2026.
Turner's offer includes a $640,000 base salary and a 100% of base salary target annual cash incentive bonus.
A $6.8 million target equity award (time-based RSUs, performance-based RSUs, and stock options) is scheduled for grant on November 3, 2025.
Sign-on compensation totals $350,000: a $200,000 cash bonus and a $150,000 relocation payment for the Boston area.
Turner's Change of Control Agreement provides two years of severance and full equity acceleration, with no tax gross-up.
Management links the transition to accelerating AI, semiconductor, and industrial automation demand and planned 2026 capacity expansion.

03—Questions

Frequently Asked Questions

Why is Teradyne changing its CFO?
Teradyne states that Sanjay Mehta, CFO since 2019, is transitioning to an executive advisor role and plans to retire in 2026. Management says aligning leadership around AI, semiconductor, and industrial automation opportunities will help the company execute with focus and agility. The filing does not indicate a dispute or performance-related reason for the change.
Who is Michelle Turner and what is her relevant experience?
Turner, age 52, was Senior Vice President and CFO of L3Harris Technologies from January 2022 to December 2023. Earlier roles include CFO and Vice President of Enterprise Supply Chain at Johnson & Johnson (2017 to 2022), Vice President of Petroleum at BHP Billiton (2016 to 2017), and CFO of Raytheon's Space and Airborne Systems business (2007 to 2017), plus finance roles at Honeywell. She holds a B.S. in accounting from the University of South Florida and an MBA from Arizona State University.
What is Turner's compensation package?
Her offer letter provides a $640,000 annual base salary and an annual cash incentive with a 100% of base salary target, consistent with other executive officers. She will receive a $6.8 million target equity award on November 3, 2025, split among time-based RSUs, performance-based RSUs, and non-qualified stock options. She also receives $350,000 in one-time sign-on payments, including a $200,000 cash bonus and a $150,000 relocation lump sum.
What severance protections does Turner have?
Turner will enter the company's standard Executive Officer Change of Control Agreement. If she is terminated without cause or resigns for good reason from three months before to 24 months after a change in control, she receives two years of severance at her annual Model Compensation rate, a prorated target bonus for the termination year, full equity acceleration (performance awards at target), and two years of health, dental, and vision coverage. Benefits require a general release and continued compliance with restrictive covenants, and there is no tax gross-up.
Does the CFO change affect Teradyne's financial results or guidance?
The filing and press release do not disclose any changes to financial results, outlook, or guidance. The transition is presented as a planned succession, with Mehta remaining available to support 2026 capacity expansion. Investors should watch for any commentary on finance continuity in upcoming earnings calls and the company's 2026 capacity plans.

04—Continue

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