Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment
of Certain Officers; Compensatory Arrangements of Certain Officers. OnAugust 5, 2020 ,Infinera Corporation (the "Company") announced thatThomas J. Fallon , the Company's Chief Executive Officer ("CEO"), would transition from his position as CEO and thatDavid W. Heard , the Company's Chief Operating Officer, would transition into the position of CEO on a date to be later determined (the "Transition Date"). The Company also announced that on the Transition Date,Kambiz Y. Hooshmand would transition from his role as Chairman ("Chairman") of the Company's board of directors (the "Board") andGeorge Riedel , an existing member of the Board, would transition into the role of Chairman. Additionally, the Company announced that Messrs. Fallon and Hooshmand would both remain members of the Board after the CEO and Chairman transitions. OnNovember 20, 2020 , the Board approved a Transition Date ofNovember 23, 2020 and appointedMr. Heard as a Class II director coincident with the commencement of his appointment as CEO.Mr. Heard will not serve on any committees of the Board. There are no arrangements or understandings betweenMr. Heard and any other persons pursuant to whichMr. Heard was appointed to the Board. There are no transactions in whichMr. Heard has an interest requiring disclosure under Item 404(a) of Regulation S-K. Mr. Heard does not have any family relationships with any of the Company's directors or executive officers.Mr. Heard will not be eligible for compensation as a member of the Board andMr. Heard's compensation as CEO is described in detail below. Heard Compensatory Arrangements In connection withMr. Heard's appointment as CEO, effective as of the Transition Date, the Board adjusted the terms ofMr. Heard's compensation in his role as CEO.Mr. Heard will receive an annualized base salary of$700,000 effective as ofDecember 5, 2020 and will be eligible to receive an annual target bonus of 125% of his annual base salary upon the achievement of performance objectives to be determined by the Board or a committee thereof. In addition, on the Transition Date,Mr. Heard was granted an award of restricted stock units covering 250,000 shares of Company common stock under theInfinera Corporation 2016 Equity Incentive Plan (the "Award") with a vesting commencement date ofDecember 5, 2020 . The Award will be scheduled to vest over three years, with one-third of the shares underlying the Award vesting on the first anniversary of the vesting commencement date and the balance of the shares underlying the Award vesting 8.33% per quarter for eight quarters thereafter, subject toMr. Heard's continued service to the Company. Upon a qualifying termination of employment, under the Company's existing severance policyMr. Heard would be entitled to a cash severance payment equal to 150% of his base salary, a prorated annual bonus for the year of his termination of employment and up to 18 months of premiums to continue health coverage pursuant to COBRA forMr. Heard and his eligible dependents. In addition,Mr. Heard will be entering into an amended Change in Control Severance Agreement with terms consistent with the Form of Chief Executive Officer Amended and Restated Change of Control Severance Agreement, filed as Exhibit 10.1 of the Company's Current Report on Form 8-K (No. 001-33486), filed with theSEC onFebruary 22, 2018 . In connection with his appointment as the Company's CEO,Mr. Heard has also been appointed to be a member of the Board. Fallon Transition Agreement As part of his transition from CEO to an advisor to the Company, the Company entered into a Transition Agreement withMr. Fallon (the "Fallon Agreement"). The Fallon Agreement provides that as of the Transition DateMr. Fallon will cease to be the Company's CEO and will continue as an advisor throughFebruary 1, 2021 to assist with the transition of his duties. During the transition period,Mr. Fallon will continue to receive his compensation currently in effect, butMr. Fallon will not be eligible for a bonus for any services he provides in 2021. Upon termination of his services as an advisor, the vesting of all of his outstanding restricted stock units will accelerate and his performance share award with the performance period endingDecember 31, 2020 will remain outstanding and will be paid (and shares issued) to the extent the goals are actually achieved. All other performance share awards granted toMr. Fallon will terminate and be cancelled. All ofMr. Fallon's options to purchase Company common stock will continue in effect in accordance with their terms and conditions. Following his termination of services as an advisor,Mr. Fallon will continue as a member of the Board.
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Item 8.01 Other Events.
InMay 2020 , in response to the COVID-19 pandemic, the Board adjusted downward the base salaries of Section 16 officers of the Company and cash retainers of members of the Board (the "Compensation Adjustments"). OnNovember 20, 2020 , the Board approved the reinstatement of base salaries of Section 16 officers of the Company, except for Messrs. Fallon and Heard as discussed above, and cash retainers of members of the Board to levels equal to those prior to the Compensation Adjustments. These reinstatements will be effective as ofDecember 5, 2020 . Item 9.01 Financial Statements and Exhibits. (d) Exhibits.
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Exhibit No. Description 104 Cover Page Interactive Data File (formatted as Inline XBRL)
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