Apple to pay Fadell $300,000 as advisor; Can't solicit workers for a year if leaves

Apple to pay Fadell $300,000 as advisor; Can't solicit workers for a year if leaves

Summary: Apple in an SEC filing on Wednesday detailed Tony Fadell's compensation package, which includes an annual salary of $300,000, stock and an agreement to avoid poaching employees for a year at the end of his employment.Apple officially announced Fadell's departure on Tuesday.

SHARE:
TOPICS: Apple, IBM
6

Apple in an SEC filing on Wednesday detailed Tony Fadell's compensation package, which includes an annual salary of $300,000, stock and an agreement to avoid poaching employees for a year at the end of his employment.

Apple officially announced Fadell's departure on Tuesday. In the SEC filing Apple said:

On November 3, 2008, Tony Fadell, Senior Vice President, iPod Division of the Company became Special Advisor to the Company’s Chief Executive Officer. In this new position, Mr. Fadell no longer will be an executive officer of the Company. In connection therewith, Mr. Fadell and the Company have entered into a Transition Agreement and a Settlement Agreement and Release (the “Transition Agreement” and the “Settlement Agreement,” respectively), under which Mr. Fadell will receive a salary of three hundred thousand dollars annually, and will be entitled to bonus and other health and welfare benefits generally available to other senior managers for the duration of the Transition Agreement, which remains in effect until March 24, 2010. The Transition Agreement also provides for the cancellation of outstanding and unvested 155,000 restricted stock units held by Mr. Fadell. Upon approval by the Compensation Committee of the Company’s Board of Directors, Mr. Fadell will be granted 77,500 restricted stock units that will vest in full on March 24, 2010, subject to his continued employment with the Company through the vesting date and further subject to accelerated vesting if the Company terminates his employment without cause. The restricted stock units are payable upon vesting in shares of the Company’s common stock on a one-for-one basis. The Settlement Agreement includes Mr. Fadell’s release of claims against the Company and agreement not to solicit the Company’s employees for one year following the termination of his employment.

Meanwhile, it's unclear what will happen to Fadell's replacement--Mark Papermaster, who is in a scrum with IBM over a non-compete agreement.

Via Digital Daily.

Topics: Apple, IBM

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

6 comments
Log in or register to join the discussion
  • Gotta love the Apple double standard!!!

    So they are asking Fadell to honor his agreement with Apple while asking Papermaster to reneg on his agreement with IBM. What a charming company!
    NonZealot
    • well its not really double standard

      here why
      1 Fadell is not really quitting, he need time for is family and wife first so yes the guy wanna be cool with apple because one day he will comeback into the structure of apple surely .

      on the other hand Papermaster dont give a rat @ss about IBM because his likely to never set foot to ibm ever again .....( for whatever reason)

      So its not really double standard its just that Fadell may wanna comeback and play it cool and papermaster show the middle finger to ibm ...
      in USA business is War
      Quebec-french
      • Not at all true

        For a man that is planning on comming back, why would Apple need to have him sign an agreement stating that if he leaves, he can not poach employees if he does? You do not need that for a person that is comming back.

        It would indicate that the very real possibility does indeed exist, and Apple is asking this person to honor an agreement they feel the IBM exist should not have to.

        No, NonZealot is absolutely correct here, it is a double standard being floated.
        GuidingLight
        • What do you expect?

          It's Apple we are talking about.
          Mectron
    • Not a double standard, and here is why...

      Apple isn't taking legal action against their former employee.

      IBM is.

      Notice the difference there? The cases are different, as in, NOT THE SAME.

      IF Apple were suing, then it would indeed be a double standard. But even so, who cares? Double standards are SOP in business. No businesses want to share, they all want to improve themselves at the expense of competitors. That's just how it is.

      "So they are asking Fadell to honor his agreement with Apple while asking Papermaster to reneg on his agreement with IBM."

      Apple has an obligation to their employees, customers, and shareholders to hire and retain talented employees.

      Apple does not owe IBM this same obligation, because it's A DIFFERENT COMPANY.

      If IBM wanted to hire an Apple person the exact same thing would be happening in the other direction. This really is a ridiculous tempest in a teapot.
      bmerc
    • RE: Gotta love the Apple "Double Standard"

      [b]You are so right there!!!![/b]

      The [b]Double Standard[/b]

      It is PERFECTLY OK for Apple to expect its departing employee to sign such an agreement.

      BUT, it is NOT OK for IBM to expect its former employee to do the same.

      Those who think differently, must be drinking lots of Cupertino Kool-Aid.
      fatman65535