Business Context and Reporting Period
This Form 8-K Current Report was filed by Applied Materials, Inc. on March 9, 2010, covering events occurring on March 3, 2010. The filing addresses Item 5.02 regarding the departure of a principal accounting officer and the appointment of a new Corporate Controller and Chief Accounting Officer.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity metrics. The document focuses exclusively on executive compensation and personnel changes.
Material Changes
Effective March 22, 2010, the company executed the following leadership changes:
- Yvonne Weatherford: Departed her role as Corporate Vice President, Corporate Controller (Principal Accounting Officer) to become Corporate Vice President, Segment CFO of Applied Global Services.
- Thomas Timko: Appointed as Corporate Vice President, Corporate Controller and Chief Accounting Officer. He joins from Delphi Automotive LLP.
Compensation and Management Commentary
Mr. Timko's compensation package includes the following terms:
- Base Salary: $350,000 annually.
- Annual Bonus: Eligible for up to 75% of base salary under the Applied Incentive Plan (prorated from start date).
- Sign-on and Retention Bonus: $125,000 payable 30 days after the start date. This amount is subject to ratable repayment if employment ends within one year.
- Equity Grant: 50,000 restricted stock units vesting in equal annual installments over four years.
- Severance: If terminated without cause during the first year, Mr. Timko is eligible for a payment equal to 12 months of base salary.
- Other Benefits: Entitled to relocation and home sale benefits.
Investor Verification Checklist
- Confirm the effective date of the leadership transition (March 22, 2010).
- Verify the total potential cash compensation for the new Chief Accounting Officer ($350,000 base + up to $262,500 bonus + $125,000 sign-on).
- Review the vesting schedule and conditions for the 50,000 restricted stock units granted.
- Assess the impact of the sign-on bonus repayment clause on short-term retention risk.