| Item 2.02. | Results of Operations and Financial Condition. |
On October 9, 2023, Unity Software Inc. (“Unity” or the “Company”) issued a press release announcing the management changes described in Item 5.02 below and its reaffirmation of previously announced guidance for the quarter ended September 30, 2023. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Item 2.02 of this Current Report on Form 8-K and the exhibit attached hereto as 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
| Item 5.02. | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
Retirement of President and Chief Executive Officer
On October 9, 2023, the Company announced that John Riccitiello will retire as the Company’s President and Chief Executive Officer and as a member of the Company’s Board of Directors (the “Board”), effective immediately. Mr. Riccitiello will assist with the transition of his responsibilities and has agreed to continue serving as an employee until he retires from the Company, effective April 9, 2024 (the “Retirement Date”).
In connection with his retirement, the Company and Mr. Riccitiello entered into a transition agreement (the “Agreement”), pursuant to which, until the Retirement Date, Mr. Riccitiello will continue to receive his base salary and previously granted equity awards will continue to vest. The Agreement also provides for a customary release of claims by Mr. Riccitiello.
In addition, Mr. Riccitiello will be entitled to an extension of the post-termination exercise period of his vested stock options outstanding on the Retirement Date until earliest to occur of (i) five years following the Retirement Date, (ii) the applicable expiration date of the applicable award, or (iii) such earlier date as provided or permitted under the applicable equity plan, subject to certain conditions described in the Agreement. If the Company terminates Mr. Riccitiello’s employment for “cause” or Mr. Riccitiello resigns for any reason, each as defined in the Agreement, prior to April 9, 2024, Mr. Riccitiello will not be entitled to the extended post-termination exercise period.
A copy of the Agreement is attached as Exhibit 10.1 to this Current Report on Form 8-K.
Appointment of Interim Chief Executive Officer and President
On October 9, 2023, the Company announced the appointment of James Whitehurst, age 55, to serve as the Company’s Interim Chief Executive Officer and President and as a member of the Board, effective immediately. Mr. Whitehurst will serve as a Class III director, to serve until the Company’s annual meeting of stockholders in 2026, or until his successor is duly elected and qualified or until his earlier death, resignation or removal.
Mr. Whitehurst also serves as a Special Advisor at Silver Lake Partners, a technology investment firm, a role he has held since March 2021. Prior to Silver Lake, Mr. Whitehurst served as a Senior Advisor at International Business Machines Corporation (“IBM”), a global technology company, from July 2021 to May 2022, after serving as President from April 2020 to July 2021 and as Senior Vice President from July 2019 to April 2020. From January 2008 to April 2020, he served as Chief Executive Officer of Red Hat, Inc., an open source software company, including through Red Hat’s acquisition by IBM in July 2019. Prior to joining Red Hat, Mr. Whitehurst held various leadership positions at Delta Air Lines, Inc., a global airline operator, from January 2002 to August 2007, and Boston Consulting Group, a management consulting firm, from September 1989 to December 2001. Mr. Whitehurst has served on the Boards of Directors of United Airlines Holdings, Inc., a publicly traded global airline operator, since March 2016, Amplitude, Inc., a publicly traded digital analytics company, since September 2021, Tanium Inc., a privately-held cybersecurity and systems management company, since January 2022, and Software AG, a software company traded on a foreign stock exchange, since January 2023. Mr. Whitehurst previously served on the Boards of Directors of multiple publicly traded companies, including Red Hat, from January 2008 to July 2019,
