Silicon Labs (SLAB) Climbs on Speculation

October 25, 2016 9:37 AM EDT

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Silicon Labs (NASDAQ: SLAB) climbed on speculation Maxim Integrated Products (NASDAQ: MXIM) could be looking at the company. DealReporter was the source of the rumor.

Earlier the company disclosed in an SEC filing:

On October 20, 2016, the Compensation Committee of the Board of Directors of Silicon Laboratories Inc. (the “Company”) approved the form of Change in Control Agreement (the “Agreement”) and the Company entered into such Agreements with its executive officers (G. Tyson Tuttle, John C. Hollister, Sandeep Kumar and Brandon Tolany).

The intent of the Agreements is to reduce (a) the potential distraction of employees occasioned by the possibility of any change in control of the Company and (b) the likelihood that employees would seek other employment following the announcement of a change in control of the Company and if such announced transaction were not consummated, the Company would be seriously harmed. Each of the Agreements is effective until October 31, 2019.

Each Agreement provides for the following potential payments and benefits upon a Change in Control Termination (as defined in the Agreement): (a) 100% of annual base salary, (b) 100% of target variable compensation for a full fiscal year, (c) stock options, restricted stock, and restricted stock units shall become fully vested, (d) market stock units and performance stock units shall be vested at 100% of the target value, and (e) a lump sum equal to the pre-tax cost of 12 months of continued COBRA coverage.

The form of the Agreement is attached hereto as Exhibit 10.1, and the foregoing description of the Agreement is qualified in its entirety by the text of the Agreement.

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