Business Context and Reporting Period
This Form 8-K Current Report was filed by Illumina, Inc. on November 11, 2013. The filing discloses the appointment of a new senior executive officer effective December 2013.
Key Financial Metrics
The filing text does not provide revenue, profit, cash flow, margins, debt, or liquidity metrics. This report focuses exclusively on executive compensation and appointment details.
Material Changes
The primary material change is the appointment of Francis deSouza as President of the Company. Mr. deSouza will report to CEO Jay Flatley and lead business units and core product functions. He joins from Symantec Corporation, where he served as President of Products & Services.
Management Commentary and Compensation Details
Mr. deSouza's employment is "at will" with the following compensation package outlined in the offer letter:
- Base Salary: $700,000 annually.
- Variable Compensation: Eligible for an "at-risk" cash bonus with a target of 80% of base salary, contingent on performance objectives.
- Sign-on Award: $140,000 cash, subject to pro rata repayment if employment ends voluntarily or for cause within 12 months.
- Performance Share Units (PSUs): Grant of 49,219 units vesting after a three-year period (ending Jan 3, 2016). Payout ranges from 50% to 150% of units based on EPS targets.
- Restricted Stock Units (RSUs): Grant of 14,583 units vesting over four years (25% annually).
Investor Verification Checklist
- Verify the start date of Francis deSouza's employment (stated as December 2013).
- Confirm the specific EPS targets used to calculate the PSU payout range.
- Review the attached press release (Exhibit 99.1) for additional strategic context regarding the appointment.
- Monitor future filings for the actual vesting outcomes of the equity grants.