Company: MRCY
Filing Date: 2025-04-01
Form Type: 8-K
Source: 0001049521-25-000011
Chunk: 1

Company: MERCURY SYSTEMS INC
Filing Date: 2025-04-01
Form: 8-K
Item: Item 5.02
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Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Departure of Chief Operating Officer

On March 28, 2025, Charles R. Wells, IV, the Company’s Executive Vice President and Chief Operating Officer, informed the Company that he will be departing for a chief executive officer role at a privately held company.

Upon Mr. Wells’ departure, William L. Ballhaus, Mercury’s Chairman and CEO, will lead the business operations group, with the group’s senior leaders reporting directly to him. David E. Farnsworth, the Company’s Executive Vice President and Chief Financial Officer will assume additional responsibilities including leading a rigorous and focused organization-wide management operating system; actioning a robust and aligned technology investment strategy; overseeing execution related customer engagements; and driving operational performance.

New Compensation Arrangement for Chief Financial Officer

In connection with Mr. Farnsworth’s expanded role, he will be granted a restricted stock unit award with a grant date value of $1,000,000 under the Company’s 2018 Stock Incentive Plan. The number of shares of the Company’s common stock underlying the award will be determined by dividing the grant date value by the average closing price of the Company’s common stock during the 30 calendar days prior to April 15, 2025, the grant date. Such award shall vest in equal installments on each of the first three anniversaries of the grant date, with other vesting terms consistent with the restricted stock unit award that Mr. Farnsworth received in August 2024, except that if Mr. Farnsworth remains with the Company through August 28, 2026, or is terminated by the Company without cause or resigns for good reason prior to that time, all service conditions in such new award will be deemed fully satisfied.

Cautionary Statement Regarding Forward-Looking Statements

This Current Report on Form 8-K may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future,” or the negative of those terms or other words of similar meaning. You should carefully read forward