Apple to Pay Departing "Father of iPod" $300,000 Shut-Up Money Annually
“Advisor” to Apple CEO Steve Jobs is a killer gig–if you can swing it. Just ask Tony Fadell. The now former senior vice president of the company’s iPod division will collect an annual salary of $300,000 until March 24, 2010, in his new role of Special Advisor to the CEO, according to Apple’s latest 10-K. He’ll also be entitled to bonus and health benefits. And be expected to keep his distance from Apple’s rivals. If he doesn’t, he can say goodbye to those 77,500 restricted Apple (AAPL) stock options set to vest in full in March of 2010. Silence is golden–in this case, golden handcuffs.
On November 3, 2008, Tony Fadell, Senior Vice President, iPod Division of Apple 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.”