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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of Earliest Event Reported): July 8, 2020

 

NortonLifeLock Inc.

(Exact Name of Registrant as Specified in Charter)

 

Delaware   000-17781   77-0181864
(State or Other Jurisdiction of
Incorporation)
  (Commission File Number)   (IRS Employer Identification No.)

 

60 E. Rio Salado Parkway, Suite 1000, Tempe, AZ   85281
(Address of Principal Executive Offices)   (Zip Code)

 

Registrant’s Telephone Number, Including Area Code (650) 527-8000

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading
Symbol
  Name of each exchange
on which registered
Common Stock, par value $0.01 per share   NLOK   The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

 

Item 5.02.  Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

Appointment of Chief Financial Officer

 

On July 8, 2020, NortonLifeLock Inc. (the “Company”) announced that Natalie M. Derse accepted an offer to become the Company’s Chief Financial Officer effective July 8, 2020. Ms. Derse replaces Matt Brown who has served as the Company’s Interim Chief Financial Officer since December 2019. Mr. Brown will return to his role as the Company’s Vice President of Finance and Chief Accounting Officer, and will continue to serve as the Company’s principal accounting officer.

 

Ms. Derse, 42 years old, previously served in numerous financial capacities with eBay, Inc., a global commerce marketplace, from July 2011 through July 2020, most recently as its Vice President and Chief Financial Officer, Global Product, Platform, Payments, Risk and Trust. Prior to joining eBay, Ms. Derse served in a variety of capacities at Stanley Black & Decker, Inc., a manufacturer of hand and power tools, from February 2008 through July 2011. Before that, Ms. Derse spent over ten years in numerous financial roles with General Electric Company, a global digital industrial company. Ms. Derse holds a Bachelor of Science degree in Finance from the University of Dayton, Ohio.

 

A summary of the material terms and conditions of Ms. Derse’s employment offer letter is set forth below. The summary is qualified in all respects by reference to Ms. Derse’s employment offer letter, which is attached as Exhibit 10.01 hereto and is incorporated herein by reference. The employment offer letter has no specified term, and Ms. Derse’s employment with the Company will be on an at-will basis. Ms. Derse will be eligible to participate in the Company’s employee and executive benefit programs, including the Company’s Executive Severance Plan and Executive Retention Plan, and will enter into the Company’s standard form of indemnification agreement for executive officers.

 

Base Salary and Target Bonus. Pursuant to her employment offer letter, Ms. Derse will receive an annual base salary of $475,000. She will also participate in the Company’s Executive Annual Incentive Plan and will have an annual bonus target of 80% of her annual base salary.

 

Equity Grants. Ms. Derse will also be granted a long-term incentive equity award for fiscal 2021 with an aggregate fair value of $4,250,000. The award will be comprised of 50% time-based restricted stock units (“RSUs”) and 50% performance-based restricted stock units (“PRUs”).

 

The RSUs will have a three-year vesting provision, with 50% of the shares vesting approximately one year from the grant date, 25% vesting approximately 2 years from the grant date and 25% vesting approximately 3 years from the grant date. The PRU portion of the award shall vest in full upon the completion and achievement of the three-year performance period ending on March 31, 2023. Both the RSUs and PRUs shall be subject to the standard terms and conditions of the Company’s RSU and PRU award agreements. The RSUs and PRUs shall be valued at the time the grants are formally approved and made by the Company’s Compensation and Leadership Development Committee.

 

There are no arrangements or understandings between Ms. Derse and any other persons pursuant to which she was selected as Chief Financial Officer. There are also no family relationships between Ms. Derse and any director or executive officer of the Company and she has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.

 

The press release announcing the foregoing leadership changes is filed as Exhibit 99.01 to this report.

 

Item 9.01. Financial Statements and Exhibits

 

(d) Exhibits

 

Exhibit Number Exhibit Title or Description
10.01  Offer Letter with Natalie M. Derse dated June 19, 2020
99.01 Press release dated July 8, 2020
104 The cover page of this Current Report on Form 8-K, formatted in Inline XBRL.

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  NortonLifeLock Inc.
     
Date: July 8, 2020 By: /s/ Bryan Ko
   

Bryan Ko

Chief Legal Officer & Corporate
Secretary

 

 

 

Exhibit 10.01

 

 

 

19 June 2020

 

Dear Natalie,

 

We are delighted to offer you the position of Chief Financial Officer at NortonLifeLock Inc. (“NortonLifeLock” or “Company”), Mountain View, CA, reporting to Vincent Pilette. You are joining the leader in consumer cyber safety and a talented and passionate team dedicated to helping secure the devices, identities, online privacy, and home and family needs of our members, providing a trusted ally in the digital world. We do work that matters and we are confident you will find rewarding opportunities with us.

 

Start Date

 

Your first day of employment is anticipated to be July 8th, 2020, pending completion of your background verification and work authorizations. Any changes to your first day of employment should be in writing and approved by your manager and your recruiter.

 

Salary

 

Your starting annual base salary will be $475,000.00 USD, less applicable deductions and withholdings.

 

Executive Annual Incentive Plan

 

Based on your position, you will participate in the Executive Annual Incentive Plan, an incentive program that rewards achievement of NortonLifeLock’s financial objectives as well as your individual performance. At 100% of Company and individual performance, you will be eligible to receive an additional 80% of your annual base salary. Even though your hire date will occur after the beginning of the FY21 EAIP performance period, your bonus will not be prorated and will accrue as if you were employed at the beginning of FY21, although proration will occur upon a leave of absence. To receive the award, you must satisfy the requirement of the Executive Annual Incentive Plan. Details of the Plan will be available to you once you begin your employment.

 

Stock

 

Pending approval by the Company’s Board or Compensation Committee, you will be granted a one-time equity grant with a fair value of $4,250,000.00 USD. The grant will be comprised of a mix of 50% Restricted Stock Units (RSUs) and 50% Performance Based Restricted Stock Units (PRUs), which is pursuant to the terms and conditions to be approved for senior executives for fiscal 2021. We expect these awards will be made to you in August 2020. The number of shares to be granted will be calculated based on the average daily closing price of the Company’s common stock as reported on Nasdaq for the twenty (20) trading days ending on the last day of the month which precedes the month in which the grant is made. The RSU portion of the award will have a 3-year vesting schedule, with 50% of the shares vesting approximately 1 year from the grant date on a designated vest date (the “First RSU Vest Date”), 25% vesting approximately 2 years from grant date on a designated vest date and the remaining 25% vesting approximately 3 years from grant on a designated vest date. The PRU portion of the award will vest in full upon completion of the three-year performance period on March 31, 2023. Details regarding your RSU and PRU vesting schedules and other terms and conditions of the grants will be provided in the RSU and PRU Award Agreements, which you will receive at the time of the grant.

 

NortonLifeLock Inc. | 60 E Rio Salado Pkwy STE 1000, Tempe, AZ 85281 | NortonLifeLock.com

 

 

 

 

 

 

 

 

Benefits

 

You are eligible to participate in a wide variety of generous employee benefit plans, including the Company’s Stock Purchase Plan, matching 401(k) savings and investment plan, and health insurance, among many others. For information on your NortonLifeLock U.S. Benefits, please visit our www.nortonlifelock.com website. Choosing the right combination of benefits is an important personal decision. Use this site to learn your options and discuss your current and future needs with your family. After your start date, you can enroll in the benefits that best fit your life.

 

Confidential and Proprietary Information

 

Your offer of employment is conditioned upon your fully and truthfully completing the enclosed NortonLifeLock Inc. Confidentiality and Intellectual Property Agreement (CIPA). By signing the CIPA and accepting this offer, you represent and warrant to us that: 1) you are not subject to any terms or conditions that restrict or may restrict your ability to carry out your duties for NortonLifeLock; 2) you will not bring with you or use to perform your job any confidential or proprietary material of any former employer or any other party; 3) you will hold in confidence any confidential or proprietary information received as an employee of NortonLifeLock; (4) you will assign to NortonLifeLock any inventions that you make while employed by NortonLifeLock in accordance with the terms of the CIPA; and (5) you will abide by all terms of the CIPA.

 

Company Policies

 

As a NortonLifeLock employee, you will be subject to and are expected to adhere to and comply with all applicable Company policies, including but not limited to, our Code of Conduct. NortonLifeLock reserves the right to change these policies at any time in its sole discretion. If you have questions or concerns about these policies, please contact your recruiter.

 

Mutual Arbitration Agreement

 

NortonLifeLock values each of its employees and fosters good relations with, and among, all of its employees. It recognizes, however, that disagreements occasionally occur. NortonLifeLock believes that the resolution of such disagreements is best accomplished by internal dispute resolution and, where that fails, by external arbitration. For these reasons, NortonLifeLock has adopted a Mutual Arbitration Agreement, a copy of which is enclosed. As a condition of employment, please sign and return the Mutual Arbitration Agreement along with your acceptance of this employment offer.

 

Employment Status

 

This letter does not constitute a contract of employment for any specific period of time but creates an “employment at will” relationship. This means that you do not have a contract of employment for any particular duration. You are free to resign at any time for any reason. Similarly, NortonLifeLock is free to terminate your employment at any time for any reason. Any statements or representation to the contrary, or that contradict any provision of this letter, are superseded by this offer letter. Participation in any of the Company’s stock or benefit programs is not assurance of continued employment for any particular period of time. Any modification of this at-will provision must be in writing and signed by the Company CEO.

 

Work Authorization

 

Federal law requires that NortonLifeLock document an employee’s authorization to work in the United States. To comply, NortonLifeLock must have a completed Form I-9 for you on your first working day. You agree to provide NortonLifeLock with documentation required by the Form I-9 to confirm you are authorized to work in the United States. If you have any questions about this requirement, which applies to U.S. citizens and non-U.S. citizens alike, contact your recruiter.

 

NortonLifeLock Inc. | 60 E Rio Salado Pkwy STE 1000, Tempe, AZ 85281 | NortonLifeLock.com

 

 

 

 

 

 

 

 

Background Verification

 

This offer is subject to and contingent upon successful completion of a background check, which may include a credit check. You may also be subject to additional background verifications and re-checks during the course of your employment as determined by business needs and consistent with Company policy and applicable law. Failure to successfully complete these additional verifications or re-checks may result in reassignment, an opportunity to apply for alternative internal positions, or termination of your employment.

 

Please review this offer and confirm your acceptance by the end of business on June 26th, 2020 by signing in the space indicated below and emailing (scanning) to               . Please also sign and return any additional forms as described in this letter. Should you have any questions about this offer, do not hesitate to call me or the HR helpdesk at 1 .

 

Natalie, we are very pleased and excited to have you come and join the leadership team at NortonLifeLock, together we will achieve great things. We do important work at NortonLifeLock (NLOK)-We are dedicated to helping secure the devices, identities, online privacy, and home and family needs of nearly 50 million consumers, providing them with a trusted ally in a complex digital world. We look forward to you joining us to make a difference in the world.

 

 

Sincerely,

/s/ Kara Jordan

Kara Jordan

Head of People & Culture

 

I hereby accept the terms and conditions of the offer of employment stated in this letter.

 

  6/22/2020  
     
/s/ Natalie Derse  
Natalie Derse Date

 

NortonLifeLock Inc. | 60 E Rio Salado Pkwy STE 1000, Tempe, AZ 85281 | NortonLifeLock.com

 

 

 

 

 

 

Exhibit 99.01

 

Press Release

 

NortonLifeLock Appoints Natalie Derse As New Chief Financial Officer

 

TEMPE, Ariz. – July 8, 2020 – NortonLifeLock (NASDAQ: NLOK), the global leader in consumer Cyber Safety, today announced the appointment of Natalie Derse as its Chief Financial Officer, effective immediately.

 

Ms. Derse brings more than 20 years of financial management experience and a deep knowledge of consumer business operations to NortonLifeLock. Ms. Derse joins NortonLifeLock from eBay, Inc., a global commerce marketplace, where from July 2011 through July 2020, she served in numerous financial capacities, most recently as its Vice President and Chief Financial Officer, Global Product, Platform, Payments, Risk and Trust. Prior to joining eBay, Ms. Derse served in a variety of capacities at Stanley Black & Decker, Inc., a manufacturer of hand and power tools, from February 2008 through July 2011. Before that, Ms. Derse spent over ten years in numerous financial roles with General Electric Company, a global digital industrial company.

 

"I couldn't be more thrilled to welcome Natalie to NortonLifeLock where she will undoubtedly make immediate and lasting contributions as we continue to focus on product, technology and marketing investments that deliver sustainable long-term growth," said Vincent Pilette, CEO of NortonLifeLock. "In addition to her financial expertise, I am particularly excited about Natalie’s focus on putting the customer-first and her knowledge of brand, marketing, and customer acquisition and retention. She will contribute to our positive momentum and drive to achieve even greater operating efficiency."

 

"I can't imagine a more exciting time to join NortonLifeLock,” Derse said. "NortonLifeLock is the leading consumer Cyber Safety company and its mission to protect everyone’s digital life is a critical one. I'm delighted to be a part of NortonLifeLock’s continued commitment to growing our base of customers protected by Norton 360."

 

Ms. Derse will lead NortonLifeLock’s global finance organization and will succeed Matthew Brown, who has served as NortonLifeLock’s interim CFO through the transition towards a pure play consumer company. Mr. Brown will return to his Chief Accounting Officer role.

 

"I would like to thank Matt for his excellent leadership of the finance organization. He has been vital to NortonLifeLock’s transition over the last year," said Pilette. "I am grateful for all he has done to finish the separation and position the company for continued sustainable and profitable growth.”

 

About NortonLifeLock

 

NortonLifeLock Inc. (NASDAQ: NLOK) is a global leader in consumer Cyber Safety. NortonLifeLock is dedicated to helping secure the devices, identities, online privacy, and home and family needs of nearly 50 million consumers, providing them with a trusted ally in a complex digital world. For more information, please visit www.NortonLifeLock.com.

 

MEDIA CONTACT:
Spring Harris
NortonLifeLock Inc.
press@nortonlifelock.com

 

INVESTOR CONTACT
Soohwan Kim, CFA
NortonLifeLock Inc.
ir@nortonlifelock.com