Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
New Director Appointment
Effective as of May 9, 2019, Coherents Board of Directors has determined to increase the size of the Board by one director from eight to nine directors, and, following the recommendation of its Governance and Nominating Committee, appoint Kay Matthews to the Board. At this time, Coherents Board has not appointed Ms. Matthews to any committee of the Board.
Kay Matthews has served as Vice Chair, West Regional Managing Partner of Ernst & Young, a global leader in assurance, tax, transaction and advisory services, since 2008. Ms. Matthews originally joined Ernst & Young in 1983, and, prior to assuming her current role, served as Chief Operating Officer, Americas Assurance and Advisory Business Services (AABS) from 2005 to 2008; Managing Partner, Americas AABS, from 2001 to 2005, Managing Partner of the Austin Office from 1998 to 2001, and in various other positions, including as an Assurance Partner from 1994. In addition, Ms. Matthews joined the Americas Executive Board of Ernst & Young in 2009 and currently serves as a Vice Chair of the Board. Ms. Matthews holds a Bachelors of Business Administration in Accounting from Texas Tech University.
In connection with her appointment to the board, Ms. Matthews will be granted an award of restricted stock units with a value of approximately $225,000 (the RSU Award) pursuant to Coherents 2011 Equity Incentive Plan (the 2011 Plan). The RSU Award will vest in two equal annual installments on each anniversary of the grant date, in each case subject to Ms. Matthews continuing to be a service provider through each applicable vesting date. The RSU Award will be subject to the terms and conditions of the 2011 Plan and the related restricted stock unit award agreement, copies of which have been filed, respectively, as Exhibit 10.1 to Coherents
Registration Statement on Form S-8 (File No. 333-174019) filed with the Securities and Exchange Commission (the SEC) on May 6, 2011
, and Exhibit 10.1 to Coherents
Quarterly Report on Form 10-Q (File No. 001-33962) filed with the SEC on August 10, 2011
, and are incorporated herein in their entirety by reference. In addition, Ms. Matthews will be eligible to receive cash compensation in the form of annual cash retainers for service on Coherents Board and Board committees, as applicable, and additional annual equity awards at each annual stockholder meeting at which she is elected to the Board.
Ms. Matthews has executed Coherents standard form of indemnification agreement, the form of which has been filed as Exhibit 10.18 to Coherents
Annual Report on Form 10-K (File No. 001-33962) filed with the SEC on December 15, 2010
and is incorporated herein its entirety by reference.
There is no arrangement or understanding between Ms. Matthews and any other persons pursuant to which she was elected as a director.
Director Retirement
In addition, Ms. Susan James, a member of the Board of Directors, notified the company on May 5, 2019 that she would be retiring from the Board of Directors at the end of her current
term and not standing for reelection at the next annual meeting of stockholders. There are no disagreements between Ms. James and the Company.
On May 8, 2019, Coherent issued a press release announcing Ms. James retirement and Ms. Matthews appointment to Coherents Board. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference
.