AST SpaceMobile's CFO Gets A New Three-Year Contract With 12 Months Of Severance Pay
The 8-K sets a $250,000 minimum salary and one-year automatic renewals for Andrew Johnson, who is also chief legal officer.
AST SpaceMobile signed a new three-year employment agreement with Andrew M. Johnson, its chief financial officer and chief legal officer, according to an 8-K filed Tuesday. The contract is dated Wednesday, October 14, and replaces his earlier agreement.
What the 8-K says
The agreement was signed by the company and its subsidiary AST & Science, LLC. Johnson's full title in the filing is Executive Vice President, Chief Financial Officer and Chief Legal Officer.
The initial term is three years from October 14. After that it renews automatically for one-year terms, unless either side gives at least 30 days' notice that it will not renew.
Pay terms:
- Base salary of not less than $250,000, reviewed each year by the board's Compensation Committee.
- An annual performance bonus set by the board, or a committee of it, in its sole discretion.
- Eligibility for time-based and performance-based restricted stock units (company shares that vest over time) under the 2024 Incentive Award Plan, on terms the Compensation Committee decides.
- Participation in the benefit plans open to senior executives.
What it changes: the severance terms
If the company fires Johnson without cause, he leaves for good reason, or the company declines to renew, he would receive 12 months of continued base salary. He would also get any bonus earned for the year of termination, as the board decides, and company-subsidized COBRA health coverage for up to 12 months.
Stock units scheduled to vest in the 12 months after termination would vest early. That includes performance-based units whose performance has been certified. All of this is conditioned on Johnson signing a release of claims and keeping to his restrictive covenants.
He remains bound by an earlier confidentiality, invention assignment and non-competition agreement. He is also an eligible employee under the company's Senior Management Change of Control Severance Policy, which pays severance for certain terminations tied to a change of control.
ASTS shares closed at $41.13 on Tuesday, against a previous close of $41.87.
Sources
- 8-K Filing — AST SpaceMobile, Inc. (ASTS) — SEC EDGAR
