Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On August 25, 2022, the Compensation Committee of the Board of Directors of
Nutanix, Inc. (the "Company") approved certain matters relating to the Company's
compensation arrangements with (i) Rajiv Ramaswami, the Company's President and
Chief Executive Officer, (ii) Rukmini Sivaraman, the Company's Chief Financial
Officer, (iii) David Sangster, the Company's Chief Operating Officer, and (iv)
Tyler Wall, the Company's Chief Legal Officer.
Fiscal Year 2023 Annual Base Salaries
The annual base salaries for Mr. Ramaswami, Ms. Sivaraman, and Messrs. Sangster
and Wall were set, effective as of August 1, 2022, as follows:
Name Annual Base Salary
Rajiv Ramaswami $800,000
Rukmini Sivaraman $450,000
David Sangster $475,000
Tyler Wall $475,000
Fiscal Year 2023 Annual Bonus Targets
Mr. Ramaswami, Ms. Sivaraman, and Messrs. Sangster and Wall will continue to
participate in the Company's Executive Incentive Compensation Plan. The annual
bonus targets under the Executive Incentive Compensation Plan for the Company's
fiscal year ending July 31, 2023 are as follows:
Name Target Award Equivalent Dollar Amount*
Rajiv Ramaswami 100% of annual base salary $800,000
Rukmini Sivaraman 75% of annual base salary $337,500
David Sangster 75% of annual base salary $356,250
Tyler Wall 75% of annual base salary $356,250
* The equivalent dollar amounts are calculated based upon the applicable
officer's annual base salary in effect as of August 1, 2022.
Fiscal Year 2023 Annual Equity Awards
In addition, on August 25, 2022, Mr. Ramaswami, Ms. Sivaraman, and Messrs.
Sangster and Wall each received an annual equity award, pursuant to and subject
to the Company's 2016 Equity Incentive Plan, with 50% of the award consisting of
time-based restricted stock units ("RSUs") and 50% of the award consisting of
performance-based restricted stock units ("PRSUs"):
Name Time-Based RSUs Granted Target Number of PRSUs Granted
Rajiv Ramaswami 275,302 275,302
Rukmini Sivaraman 100,000 100,000
David Sangster 100,000 100,000
Tyler Wall 90,000 90,000
Each RSU represents a contingent right to receive one share of the Company's
Class A common stock upon vesting. The RSUs will vest in 16 equal quarterly
installments, with the first quarterly installment to vest on December 15, 2022,
subject to continued service to the Company through each vesting date.
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Each PRSU represents a contingent right to receive one share of the Company's
Class A common stock upon vesting, provided that the actual number of PRSUs that
may vest may be more or less than the target number of PRSUs. The PRSUs will be
eligible to vest in up to three installments based on the total shareholder
return of the Company ("Company TSR") during each of the following performance
periods (each, a "Performance Period") relative to the total shareholder return
of companies in the NASDAQ Composite Index (the "Indexed Companies"): (i) August
1, 2022 to July 31, 2023 ("Performance Period One"); (ii) August 1, 2022 to July
31, 2024 ("Performance Period Two"); and (iii) August 1, 2022 to July 31, 2025
("Performance Period Three"). PRSUs that become eligible to vest based on
performance for a Performance Period vest on September 15 following the
Performance Period, subject to continued service to the Company through the
vesting date. The total number of PRSUs that will be eligible to vest range from
0% to 200% (the "Achievement Percentage") of the target number of PRSUs, except
that the Achievement Percentage is capped at 100% for Performance Period One and
Performance Period Two. Up to 1/3 of the PRSUs will be eligible to vest as a
result of performance for each of Performance Period One and Performance Period
Two. The Achievement Percentage of the target number of PRSUs that may vest are
(i) 0% if Company TSR ranks below the 25th percentile of the Indexed Companies,
(ii) 100% if Company TSR ranks at the 50th percentile of the Indexed Companies,
and (iii) 200% if Company TSR ranks at the 75th percentile of the Indexed
Companies. If Company TSR ranks between these percentile thresholds, the
Achievement Percentage of the target number of PRSUs that may vest is determined
using linear interpolation. 100% of the PRSUs (as may be increased as a result
of any Achievement Percentage in excess of target) will be eligible to vest with
respect to Performance Period Three, less any PRSUs that already vested in
Performance Period One and Performance Period Two. The PRSUs are subject to a
maximum value cap that limits the total value that may become eligible to vest
at the end of Performance Period Three, with the Achievement Percentage for
Performance Period Three subject to reduction so that the product of the ending
price per share at the end of Performance Period Three multiplied by the
Achievement Percentage cannot exceed $89.70.
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