Rosetta Stone 2011 Annual Report Download - page 122
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Table of Contents
ROSETTA STONE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
20. SUBSEQUENT EVENTS (Continued)
and services to, the Company. The executive officers of the Company who will receive the retention awards are Michael S. Fulkerson, Chief Technology
Officer, Pragnesh N. Shah, President, Global Consumer, Stephen M. Swad, Chief Financial Officer, Judy K. Verses, President, Global Institutions and
Michael C. Wu, General Counsel and Secretary. The amounts of the special retention awards are set out in the table below:
Executive Officer Special Retention Cash
Bonus Amount Number of Shares of
Restricted Stock Awarded
Michael S. Fulkerson $ 150,000.00 21,246
Pragnesh N. Shah $ 25,000.00 3,541
Stephen M. Swad $ 150,000.00 63,739
Judy K. Verses $ 25,000.00 3,541
Michael C. Wu $ 100,000.00 14,164
In addition to the above named executives, fifteen other key employees were granted a special retention cash bonus and shares of restricted common
stock of the Company. The total retention cash bonus was $1.4 million and a total of 233,711 shares of restricted common stock with a grant date fair value of
$1.6 million were granted.
On January 9, 2012, the Board also granted to Stephen M. Swad 70,822 shares of restricted common stock of the Company in recognition of Mr. Swad's
expanded operational role and overall responsibilities. The restricted common stock of the Company will vest 50% on January 1, 2013, and 50% on January 1,
2014. The award of shares of restricted stock of the Company is subject to accelerated vesting upon the termination of Mr. Swad's employment by the
Company or one of its subsidiaries without cause.
The grants of restricted stock of the Company are made pursuant to the Rosetta Stone Inc. 2009 Omnibus Incentive Plan.
On February 22, 2012, the Board promoted Chief Financial Officer Stephen M. Swad, age 50, to President and Chief Executive Officer.
In connection with Mr. Swad's appointment as President and Chief Executive Officer, the Board increased Mr. Swad's base salary to $500,000 and his
target annual bonus to 100% of his base salary. The Board also awarded Mr. Swad 48,500 shares of restricted common stock and 125,000 stock options issued
pursuant to the Company's 2009 Omnibus Incentive Plan.
F-41