01—Abstract
Summary
Summary of the 8-K filed September 19, 2012. Cited figures are marked; the original filing is the authoritative source.
Take-Two Interactive Software, Inc. (TTWO) filed a Form 8-K on September 19, 2012, reporting a second amendment to the employment agreement of its Executive Vice President and General Counsel, Seth Krauss.
This amendment, effective September 14, 2012, primarily details adjustments to Mr. Krauss's compensation package. Key changes include an increased annual salary of $575,000,a effective immediately and pro-rated for the current fiscal year. Future annual salary increases of 2% are stipulated starting April 1, 2014.
Additionally, Mr. Krauss will be eligible for an annual bonus with a target of 70%b and a maximum of 140% of his salary, contingent on company performance. The company also plans to grant Mr. Krauss 408,329 shares of restricted stock, which will vest over six years, subject to specific stock price performance targets.
02—Key points
Key Highlights
- Amendment to Executive Employment Agreement: The primary event reported is the second amendment to the employment agreement for Seth Krauss, EVP and General Counsel.
- Salary Increase: Mr. Krauss's annual salary has been increased to $575,000, effective immediately and pro-rated for the fiscal year ending March 31, 2013.
- Future Salary Adjustments: The agreement includes a 2% annual salary increase starting April 1, 2014.
- Bonus Potential: Mr. Krauss is eligible for an annual bonus, targeting 70% of his salary, with a maximum potential of 140% based on company financial targets.
- Restricted Stock Grant: The company will grant 408,329 shares of restricted stock to Mr. Krauss, subject to performance-based vesting over six years.
- Vesting Contingencies: The restricted stock vesting is tied to the satisfaction of certain stock price thresholds measured from the amendment date.
- Disclosure of Employment Terms: This filing provides updated details on key executive compensation elements, offering transparency to investors regarding incentives for senior management.
03—Questions
Frequently Asked Questions
What is the main purpose of this 8-K filing?
The main purpose of this 8-K filing is to report on the second amendment to the employment agreement for Take-Two Interactive's Executive Vice President and General Counsel, Seth Krauss, specifically detailing changes to his compensation and equity awards.
How does Seth Krauss's salary change with this amendment?
Seth Krauss's annual salary has been increased to $575,000, effective immediately. This salary will be pro-rated for the remaining portion of the company's fiscal year ending March 31, 2013.
What are the terms of the restricted stock grant to Mr. Krauss?
Mr. Krauss will be granted 408,329 shares of restricted stock. These shares will vest in six equal annual installments, beginning on March 31, 2013, provided that certain stock price performance thresholds, measured from the amendment date, are met.
Is Mr. Krauss eligible for a bonus, and if so, what are the terms?
Yes, Mr. Krauss is eligible to receive an annual bonus. The target bonus is 70% of his salary, and the maximum potential bonus is up to 140% of his salary, contingent upon the achievement of specific company financial targets.
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