Offer letter dated as of March 4, 2019 between Registrant and Chuck Boynton
EX-10.10 7 ex1010fy19.htm EXHIBIT 10.10 Exhibit
March 4, 2019
On behalf of Plantronics, Inc., the “Company” I am pleased to offer you the position of Executive Vice President, Chief Financial Officer reporting to me. Should you accept this offer of employment, your first day of employment is anticipated to be on or about March 8, 2019 (your actual first day of employment is referred to as the “start date”).
This letter outlines the terms of your employment with the Company as of your start date, including your compensation and benefits, as set forth below:
• Annualized Base Salary
$485,000 per year, payable biweekly in accordance with our standard payroll practices and less applicable tax withholding.
• Executive Incentive Plan
• 80% of your Annual Base Salary or $388,000, at target performance.
• The purpose of the Plantronics, Inc. Executive Incentive Plan (“EIP” or the “Plan”) is to focus participants on achieving annual Company-wide financial performance goals as well as product group, segment, or functional objectives and individual performance goals by providing the opportunity to receive annual cash payments based on accomplishments during the year.
• Please refer to the Executive Incentive Plan “Administrative Guidelines” for further details on how bonuses may be earned.
• Target Total Cash Compensation
$873,000 per year based on the compensation elements shown above assuming at target performance.
• Auto Allowance
You are eligible to receive an auto allowance of $8,260 per year. This amount will be paid prorata during each bi-weekly payroll. The gross amount will be listed as a separate income item and appropriate taxes withheld. You will not be reimbursed for business miles driven or car expenses.
• New Hire Restricted Stock Units
$1,700,000 of the Company’s common stock in the form of a restricted stock unit award (“restricted stock units”). It will be recommended to the Company’s Board of Directors or a sub-committee thereof that you receive an award for shares of the Company’s common stock in the form of the restricted stock units. The actual number of shares that may be awarded will be determined by dividing the foregoing value by the average per share closing price of the Company’s common stock for the 30 days immediately preceding the date of grant. If approved, the price to you of the restricted stock units will be $0.00 and the shares will be awarded and subject to a restricted stock unit agreement. Moreover, if approved the award will be granted on the fifteenth day of the calendar month after both (i) approval by the Board of Directors or a sub-committee thereof, and (ii) your actual start date (or the next trading day of the Company’s common stock on the New York Stock Exchange if the fifteenth day is not a trading day) (“Award Date”). If approved, the restricted stock units will vest and be released from escrow or settled in three equal annual installments with the installments vesting on the last calendar day of the month following each of the first, second and third anniversaries of the Award Date, respectively; provided, however, any shares that would otherwise vest and be released from escrow or settled on December 31st of any year shall instead vest on January 2nd of the succeeding year. All vesting is subject to your continued employment on each applicable vesting date.
345 Encinal Street | Santa Cruz | CA | 95060
• Annual Performance Stock Units
It will be recommended to the Company’s Board or a subcommittee thereof that you be awarded an at target performance based restricted stock unit award (“PSU”) with a grant date value of $1,700,000. The actual number of shares of the Company’s common stock that may be awarded (“At Target Shares”) will be determined by dividing the foregoing value by the average per share closing price of the Company’s common stock for the 30 days immediately preceding the date of grant. Furthermore, subject to the terms of this paragraph, the provisions of the Company’s form PSU Agreement and depending on the review and confirmation of performance by the Board and/or applicable subcommittee, the number of shares ultimately awarded under the PSU agreement are subject to the provisions of the “FY20 Performance Based Restricted Stock Unit Plan”. If approved, the price to you of the shares subject to the PSU will be $0.00. If approved, it is anticipated that the PSU award will be granted on the 15th day of the calendar month (or the next trading day of the Company’s stock on the New York Stock Exchange) immediately following both (i) approval of the PSU award by the Board or a subcommittee thereof, and (ii) the month you commence employment with the Company. The number of shares of the Company’s common stock that may ultimately vest will be determined by the Board or a subcommittee thereof. All vesting is subject to your continued employment on each applicable vesting date.
• General Benefits
You will be eligible to participate in Company benefit programs as available or that become available to other similarly situated employees of the Company, subject to the generally applicable terms and conditions of each program. The continuation or termination of each program will be at the discretion of the Company.
• Change of Control
As of your start date, you will be provided with change of control severance protection under the same form of agreement previously provided to the CFO.
• Severance Agreement
If you are terminated other than for cause, you will be entitled to severance consistent with the Company’s executive severance programs approved by the Company’s compensation committee from time to time.
• Executive Physical Program
You will be automatically enrolled in our Executive Health Exam Program. You will be eligible to receive one exam and personalized health guidance from a board-certified doctor, at the company’s expense. This screening will give you guidance and direction on further health items to follow up on. To qualify you must schedule the appointment through the pre-identified network of doctors.
You are eligible to join the Plantronics, Inc. 401(k). Plantronics will match 100% of every $1.00 you contribute for the first 3% of your eligible compensation and 50% of every $1.00 you contribute for the next 3% of your eligible compensation for a maximum of up to 4.5% of your eligible compensation each pay period. The matching contribution is 100% vested immediately. If after 30 days from your date of hire you have not actively selected a contribution amount to set aside each pay period, Plantronics will automatically enroll you at a discretionary employee contribution of 3% of your eligible earnings on a bi-weekly basis to the 401(k).
• Non-Qualified Deferred Compensation Plan
You will be eligible to participate in a non-qualified deferred compensation plan, subject to the terms and conditions of the Plan Document. An eligible participant may elect to defer prospective compensation not yet earned by submitting a Compensation Deferral Agreement during the enrollment periods. For more information regarding the Plantronics, Inc. Deferred Compensation Plan, please see the Prospectus.
You will be eligible to participate in the Company’s Employee Stock Purchase Plan, subject to the terms of the Plan.
345 Encinal Street | Santa Cruz | CA | 95060
This formal notification of our offer of employment is subject to the terms set forth in your Employment Application which you have submitted to Plantronics and is contingent upon satisfactory background verification, receipt of an original application, a final review of references, and the approval of the Compensation Committee of the Board of Directors.
For purposes of stock ownership, please be advised that Executive Officers are expected to meet certain requirements. At present, “Executive Officers” are defined as those executives who the Board of Directors has determined are Section 16 Officers in accordance with the Securities Exchange Act of 1934, as amended. The Board of Directors may modify this requirement on a case by case if compliance reasonably creates a hardship for any such Executive Officer. Plantronics’ Board of Directors may furthermore modify these stock ownership requirements at their discretion, including expanding the executives deemed to be Executive Officers under this policy.
For purposes of federal immigration law, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided to the Company within 3 business days of your start date, or our employment relationship with you may be immediately terminated.
Before releasing certain export-controlled technology and software to you during your employment at Plantronics, Plantronics may be required to obtain an export license in accordance with United States law. Plantronics will inform you if an export license is needed. If an export license is required, then this offer of employment and/or your continued employment (if applicable) with Plantronics is contingent upon receipt of the export license or authorization, and Plantronics will have no obligation to employ you or provide you with any compensation or benefits until the export license or authorization is secure.
Please be aware that your employment with the Company is for no specified period and constitutes at-will employment. As a result, you are free to resign at any time, for any reason or for no reason. Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause, and with or without notice. We request that, in the event of resignation, you give the Company at least two weeks’ prior notice.
You agree that, during the term of your employment with the Company, you will devote substantially all of your professional time to your responsibilities at Plantronics, and you will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which the Company is now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company.
As a Company employee, you will be expected to abide by company rules and standards as presented in our Employee Handbook and our World Wide Code of Business Conduct and Ethics.
As a condition of your employment, you will also be required to sign and comply with:
Employee, Confidential Information, and Invention Assignment Agreement which requires, among other provisions, (i) the assignment of patent, copyright and other intellectual property rights to any invention made during your employment at the Company, and (ii) non-disclosure of proprietary information.
Export Compliance: Before releasing certain export-controlled technology and software to you during your employment at Plantronics, Plantronics may be required to obtain an export license in accordance with United States law. Plantronics will inform you if an export license is needed. If an export license is required, then this offer of employment and/or your continued employment (if applicable) with Plantronics is contingent upon receipt of the export license or authorization, and Plantronics will have no obligation to employ you or provide you with any compensation or benefits until the export license or authorization is secure.
All payments and benefits under this letter are subject to applicable tax and other withholdings. To the extent that reimbursements or other in-kind benefits under this letter constitute “nonqualified deferred compensation” for purposes of Internal Revenue Code section 409A, (i) all expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by you, (ii) any right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange
345 Encinal Street | Santa Cruz | CA | 95060
for another benefit, (iii) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, and (iv) except as specifically provided herein or in the applicable reimbursement arrangement, any such reimbursements or in-kind benefits must be for expenses incurred and benefits provided during the your lifetime. In no event will the Company shall not be held liable for any taxes, interest, penalties or other amounts owed by Employee under Code Section 409A.
To indicate your acceptance of the Company’s offer of employment as stated above, please sign and date this letter in the space provided below. A duplicate original is enclosed for your records. This letter sets forth the terms of your employment with the Company and supersedes any prior representations or agreements, whether written or oral. This letter, including, but not limited to, its at-will employment provision, may not be modified or amended except by a written agreement signed by Plantronics’ CEO and you.
I look forward to working with you and having you as a member of the team!
/s/ Joe Burton
President & Chief Executive Officer
Agreed to and accepted:
Signature: /s/ Charles Boynton
Printed Name: Charles Boynton
Received Offer Date: 3-4-19
Confirmed Start Date: 3-8-19
The offer expires one week from the date listed on the first page.
345 Encinal Street | Santa Cruz | CA | 95060