Business Context and Reporting Period
This Form 8-K Current Report was filed by Network Appliance, Inc. on October 17, 2005. The filing discloses a significant executive appointment under Item 5.02.
Key Financial Metrics
The filing does not provide financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation and appointment details.
Material Changes
The primary material change reported is the appointment of Tom Georgens as Executive Vice President and General Manager of Enterprise Storage Systems, effective October 17, 2005. Mr. Georgens joins from Engenio Information Technologies, Inc., where he served as President and CEO.
Management Commentary and Compensation Details
Mr. Georgens' employment is on an "at-will" basis. His compensation package includes:
- Annual Salary: $375,000.
- Sign-on Bonus: $500,000, payable in five equal monthly installments.
- Stock Options: 400,000 shares of Common Stock (25% vesting on the first anniversary; remainder vesting monthly over three years).
- Restricted Stock: 20,000 shares of Common Stock (vesting annually over four years at 25% per year).
- Relocation Stipend: $250,000, effective for the first two years of employment if employment is mutually terminated.
Investor Verification Checklist
- Verify the effective date of Mr. Georgens' appointment (October 17, 2005).
- Confirm the vesting schedules for the 400,000 stock options and 20,000 restricted shares.
- Review the terms regarding the $250,000 relocation stipend, specifically the condition of mutual termination.
- Check subsequent filings for any changes to the executive team or compensation structure.