KLA Corporation (KLAC, Financial) has announced a significant leadership transition involving Oreste Donzella, the company's Executive Vice President and Chief Strategy Officer. Effective April 14, 2025, Mr. Donzella will transition to a part-time senior advisor role, a position he will hold until August 16, 2026. During this period, Mr. Donzella will continue to support the company by providing strategic guidance and facilitating a smooth transition of his current responsibilities.
Until April 13, 2025, Mr. Donzella will maintain his current role and responsibilities as Chief Strategy Officer, ensuring continuity in leadership and strategic initiatives. The transition is structured to allow Mr. Donzella to assist KLA Corporation in navigating the evolving business landscape while leveraging his extensive experience and insights.
As part of the transition, KLA Corporation and Mr. Donzella have entered into a Senior Advisor Agreement. Under this agreement, Mr. Donzella will provide at least 10 hours of service per week during the advisory period. His compensation package includes an annualized base salary of $125,000, continued vesting of existing equity awards, and eligibility to participate in the company's 401(k) plan and other retirement and welfare plans. However, he will not participate in the company's bonus programs or receive new long-term equity awards during this period.
The agreement also outlines severance terms in the event of Mr. Donzella's termination by the company for reasons other than cause, death, or disability. If terminated before August 5, 2025, Mr. Donzella will receive a lump-sum payment of $7,000,000. If terminated on or after August 5, 2025, but before August 6, 2026, the payment will be $3,500,000.
Mr. Donzella will remain bound by his Proprietary Information and Inventions Agreement and other restrictive covenants with KLA Corporation and its affiliates, ensuring the protection of the company's intellectual property and strategic interests.
This leadership transition reflects KLA Corporation's commitment to strategic planning and continuity, positioning the company for sustained growth and innovation in the semiconductor industry.
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