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Kennedy's Take

1:00 PM -- Remember the 750,000 shares of stock Kevin Kennedy was granted a year ago? (See JDSU Antes Up.) On Friday, the Mercury News published a helpful reminder about that.

Last week, Kennedy announced his pending resignation as chief executive of JDSU (Nasdaq: JDSU; Toronto: JDU), as he'd accepted the top job at Avaya Inc. . (See Kennedy Bids JDSU Adieu and JDSU's Kennedy Lands at Avaya.)

In terms of stock awards, it turned out to be a good time to quit. Combining the Merc report with the appropriate Securities and Exchange Commission (SEC) filing, here's what I think Kennedy walks away with.

Table 1: Vesting, Vesting...
Shares Timing/Conditions Vesting Status
175,000 Granted October 2007. Deliverable upon Kennedy's leaving the company for any reason. Any reason! These shares were instantly vested upon their being award in October 2007. A clause appears to say he'd have gotten the shares this year anyway, even if he didn't leave.
200,000 Granted October 2007 Fully vested as of last month, I believe. (The Merc analysis says only half the shares are vested, but I'm not sure that's right.)
375,000 Awarded during fiscal first-quarter 2009 These shares vest on a schedule that stretches out for three years.


In 2007, Kennedy also got a pay raise, to $800,000 from $575,000. So his total take, not including stock options, for sticking around two more years comes to more than $5 million.

The Merc notes that JDSU's share price has fallen 80 percent since September 2003, when Kennedy took office. If you don't count the last two months, when pretty much every stock sank, that figure comes out to just 60 percent. Well, that's much better.

— Craig Matsumoto, West Coast Editor, Light Reading

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