Avid Replaces Chief Accounting Officer

6 Aug

SCRI's NewsBriefs

Follow Broadcast Pro Video Breaking News on Twitter

  • Share
  • Share

Avid has replaced the Chief Accounting Officer, Karl Johnson. This announcement comes on the heels of several other negative news announcements including  the replacement of CEO Garry Greenfield and CFO Ken Sexton (Avid Replace CFO Amid Financial Troubles), as well as the recent potential delisting from NASDAQ , and postponement of Q3 financials.

The latest news of the replacement of CAO Karl Johnson was stated as follows in the Avid Form 8-K

Change in Chief Accounting Officer

Effective July 19, 2013, Karl E. Johnsen ceased to serve as the Company’s Vice President of Finance, Chief Accounting Officer and Controller of Avid Technology, Inc. (the “Company”) and John W. Frederick, the Company’s existing Executive Vice President, Chief Financial Officer and Chief Administrative Officer was appointed interim Principal Accounting Officer of the Company. The disclosure contained in the Company’s Form 8-K filed April 22, 2013 with respect to Mr. Frederick is incorporated herein by reference, and no additional arrangement or understanding with Mr. Frederick was entered into in connection with Mr. Frederick becoming the Company’s Principal Accounting Officer. In connection with Mr. Johnsen’s separation, the Company and Mr. Johnsen entered into a consulting and severance agreement (the “Johnsen Agreement”) providing for six months’ salary continuation, a three month consulting arrangement, and other customary provisions.

The foregoing summary of the material terms of the Johnsen Agreement is qualified in its entirety by the Johnsen Agreement, the form of which is filed as exhibit 10.1 hereto, and incorporated herein by reference.

In Addition Avid announced that the company would be adopting a remediation bonus plan for current employees. It is interesting that the company chose the term “remediation” to describe the plan — “The act or process of correcting a fault or deficiency.”

The Avid Form 8K went on to describe this plan as follows:

Adoption of Remediation Bonus Plan

On July 19, 2013, the Company adopted a 2013 Remediation Bonus Plan (the “Bonus Plan”) for employees of the Company, as authorized by the Compensation Committee (the “Committee”) of the Board. The Committee also designated the officers participating in the Bonus Plan. The Bonus Plan provides for participants to receive individualized cash bonus payments upon the earlier of the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, immediately prior to a change in control of the Company, March 31, 2014 with respect to non-officer participants, and such date on or subsequent to March 31, 2014 as established at the discretion of the Committee with respect to officer participants. The individual cash payments to Participants are subject to approval by the Company’s Chief Executive Officer with respect to non-officer participants and the Committee with respect to executive officer participants. A participant ceases to be eligible for a bonus payment pursuant to the Bonus Plan upon ceasing to be an employee of the Company. Aggregate bonus payments pursuant to the Bonus Plan may not exceed $1.7 million.

The foregoing summary of the Bonus Plan is qualified in its entirety by the Bonus Plan, the form of which is filed as exhibit 10.2 hereto, and incorporated herein by reference.

Item 7.01 Regulation FD Disclosure

The Company’s cash balance on June 30, 2013 was $56.1 million. The Company expects that additional cash expenditures related to the ongoing accounting evaluation (including payments under the Bonus Plan, if any) through the fiscal year ending December 31, 2013

No comments yet

Leave a Reply