Qorvo updates executive severance and CIC terms
Qorvo, Inc. updated severance protections for its named executive officers, excluding its CEO, following a market review with an independent compensation consultant.
Rhea-AI Filing Summary
Qorvo, Inc. updated severance protections for its named executive officers, excluding its CEO, following a market review with an independent compensation consultant. The Board approved amended change in control agreements and a new Executive Severance Plan to align pay and benefits with peer practices.
Under the revised change in control agreements, most executives receive an increased cash severance multiple from 1x to 1.5x salary and bonus, a longer COBRA coverage period rising from 12 to 18 months, and performance-based equity that accelerates based on the greater of target or actual performance. The Chief Financial Officer’s severance multiple did not change.
Outside a change in control, the new Executive Severance Plan provides cash severance equal to base salary plus annualized target bonus paid over 12 months, a pro-rata annual bonus based on actual performance, 12 months of COBRA coverage, and one year of continued equity vesting in exchange for a non-compete. All benefits require a release of claims and ongoing compliance with restrictive covenants.
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8-K Event Classification
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What executive compensation changes did Qorvo (QRVO) announce in this 8-K?
How did Qorvo change severance terms for executives in a change in control?
Are Qorvo’s CEO and CFO included in these new severance arrangements?
What does Qorvo’s new Executive Severance Plan provide outside a change in control?
What conditions must Qorvo executives meet to receive severance benefits?
Will Qorvo file the full text of these executive agreements?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On August 14, 2025, the Board of Directors (the “Board”) of Qorvo, Inc. (the “Company”) approved certain arrangements with the Company’s named executive officers (other than its Chief Executive Officer, Robert A. Bruggeworth) which were the result of a review undertaken by the Company, together with the assistance of its independent compensation consultant, to determine whether the Company’s existing severance arrangements with such named executive officers remained aligned with current market practice among the Company’s peers.
The Board approved the entry by the Company into an Amended and Restated Change in Control Agreement with each named executive (officer other than Mr. Bruggeworth) which provides for, among other things, the following modifications to the executive’s severance payments and benefits as previously in effect in the event of a qualifying termination of employment in connection with a change in control of the Company: (i) an increase in the executive’s cash severance multiple from 1x to 1.5x (other than its Chief Financial Officer, Grant A. Brown, whose multiple did not change), (ii) an increase in the COBRA coverage period from 12 to 18 months and (iii) measurement of accelerated performance-based equity awards at the greater of target and actual performance (which previously would have been measured at target).
The Board also approved the adoption of an Executive Severance Plan under which the Company’s named executive officers (other than Mr. Bruggeworth) would be eligible to receive the following severance payments and benefits in the event of a qualifying termination of employment other than in connection with a change in control: (i) a cash severance payment equal to the executive’s base salary plus annualized target bonus opportunity (paid over 12 months), (ii) a pro-rata annual bonus for the year of termination based on actual performance (paid in a lump sum), (iii) COBRA coverage for 12 months and (iv) one year of continued vesting of outstanding equity awards in exchange for a non-compete.
The receipt of the payments and benefits described above is subject in all cases to the executive’s execution and non-revocation of a release of claims and compliance with post-employment restrictive covenants.
The foregoing descriptions do not purport to be complete and are subject to, and qualified in their entirety by, the full text of such arrangements, copies of which will be attached as exhibits to the Company’s Quarterly Report on Form 10-Q filed for the quarter ending September 27, 2025.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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By: |
/s/ Grant A. Brown | |
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Grant A. Brown | ||
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Senior Vice President and Chief Financial Officer | ||
Date: August 15, 2025