Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
Retirement of Mark E. Jagiela as Chief Executive Officer
As previously disclosed on the Current Report on Form 8-K filed November 16,
2022, Mark E. Jagiela is retiring as Chief Executive Officer of Teradyne, Inc.
("Teradyne" or the "Company") effective February 1, 2023 (the "Retirement
Date"). Mr. Jagiela is also retiring as a member of the Company's Board of
Directors effective February 1, 2023.
In connection with the retirement of Mr. Jagiela, Teradyne entered into an
agreement on January 31, 2023 with Mark E. Jagiela (the "Retirement Agreement").
The Retirement Agreement supersedes the terms of the Agreement Regarding
Termination Benefits dated January 22, 2014 between Mr. Jagiela and the Company
under which Mr. Jagiela was entitled to severance compensation, continued
benefits and continued vesting of equity for twenty-four months from the date of
severance. Under the Retirement Agreement, Mr. Jagiela's unvested restricted
stock units and stock options granted prior to his Retirement Date will continue
to vest in accordance with their terms through February 1, 2026; and any vested
options or options that vest during that period may be exercised for the
remainder of the applicable option term. In the Retirement Agreement,
Mr. Jagiela agreed to be bound by non-competition and non-solicitation
restrictions through February 1, 2026 and to enter into an employment release
that includes the release of rights under the Agreement Regarding Termination
Benefits. The Retirement Agreement also includes additional, standard terms and
conditions relating to Mr. Jagiela's separation from the Company.
Appointment of Gregory S. Smith as Chief Executive Officer
As previously disclosed on the Current Report on Form 8-K filed November 16,
2022, the Company appointed Gregory S. Smith the Chief Executive Officer of the
Company effective February 1, 2023, replacing Mark E. Jagiela. Mr. Smith also
has been appointed to the Company's Board of Directors effective February 1,
2023. Mr. Smith, 59, joined Teradyne in 2006 and has served as President of the
Company since July 2022 and President of the Company's Industrial Automation
Group since 2020. Mr. Smith served as President of the Company's Semiconductor
Test Division from 2016 to 2020.
In connection with the appointment of Mr. Smith as Chief Executive Officer, on
February 1, 2023, Teradyne entered into an Agreement Regarding Termination
Benefits (the "Severance Agreement") with Gregory S. Smith in connection with
his appointment as Chief Executive Officer of the Company effective February 1,
2023. The term of the Severance Agreement is for a period of three (3) years
beginning on the execution date and shall be extended for additional one
(1) year periods unless terminated by Teradyne pursuant to the terms thereof.
The Severance Agreement provides that if Mr. Smith's employment is terminated by
Teradyne for any reason other than death, disability, or cause, Mr. Smith shall
receive beginning on the date his employment is terminated and continuing for a
period of twenty-four (24) months: (a) a monthly severance payment equal to
1/12th of his then current annual model compensation; (b) continued health,
dental and vision insurance plan coverage; and (c) Mr. Smith's unvested, non
performance-based equity awards held as of the date of termination shall
continue to vest as if his employment had not been terminated. In addition, for
a period of three (3) years from termination, Mr. Smith's performance-based
equity grants shall continue to vest as if his employment had not been
terminated.
In consideration of the benefits provided to Mr. Smith under the Severance
Agreement, Mr. Smith agreed, among other things, that: (i) for a period of three
(3) years following termination, he will not directly engage in any solicitation
or hiring of employees or customers of Teradyne; (ii) for a period of one
(1) year following termination, he will not compete with Teradyne; and (iii) he
will sign a release of any claims he has or may have against Teradyne.
The foregoing descriptions of the Retirement Agreement and Severance Agreement
do not purport to be complete and are subject to, and qualified in their
entirety by, the complete text of the Retirement Agreement and Severance
Agreement, copies of which the Company expects to file with its Annual Report on
Form 10-K for the fiscal year ending December 31, 2022.
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Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Number Description
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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