Adobe Inc. (NASDAQ: ADBE) has approved a retention letter with Louise Pentland that outlines severance benefits in the event her employment is terminated without cause or if she resigns for good reason, according to a press release statement.

The agreement, approved by Adobe's Executive Compensation Committee on July 14, 2026, includes a lump-sum cash payment equal to 12 months of base salary plus 100% of her target annual bonus for the fiscal year in which termination occurs. It also provides for up to 12 months of COBRA premium payments following termination.

Additional terms include accelerated vesting of 50% of certain restricted stock unit awards if termination occurs before July 15, 2027, and accelerated vesting of outstanding time-based equity awards as to the portion that would have vested through January 31, 2027, if termination occurs before that date. Receipt of these benefits is contingent on Pentland executing and not revoking a release of claims.

The retention letter specifies that these severance protections are temporary and will expire 12 months after a new Chief Executive Officer begins employment with the company.