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Tony Fadell to Remain as Special Advisor to Steve Jobs

Former senior vice president of Apple’s iPod division, Tony Fadell, will not be completely isolated from the Cupertino-based company, following his recent departure as he has been appointed a Special Advisor to Steve Jobs.

Apple’s most recent 10-K filing reveals that Fadell will be keeping ties with the company as a Special Advisor to Steve Jobs, where he will be compensated to the tune of $300,000 annually with full benefits until March 24, 2010. Yet this special advisory position comes with one major stipulation. Fadell is required to stay clear of all Apple rivals if he wants to secure his 77,500 restricted stock options that are set to vest in March of 2010.

The SEC filing states:

“On November 3, 2008, Tony Fadell, Senior Vice President, iPod Division of Apple (AAPL) became Special Advisor to the Company’s Chief Executive Officer. In this new position, Mr. Fadell no longer will be an executive officer of the Company. In connection therewith, Mr. Fadell and the Company have entered into a Transition Agreement and a Settlement Agreement and Release (the “Transition Agreement” and the “Settlement Agreement,” respectively), under which Mr. Fadell will receive a salary of three hundred thousand dollars annually, and will be entitled to bonus and other health and welfare benefits generally available to other senior managers for the duration of the Transition Agreement, which remains in effect until March 24, 2010. The Transition Agreement also provides for the cancellation of outstanding and unvested 155,000 restricted stock units held by Mr. Fadell. Upon approval by the Compensation Committee of the Company’s Board of Directors, Mr. Fadell will be granted 77,500 restricted stock units that will vest in full on March 24, 2010, subject to his continued employment with the Company through the vesting date and further subject to accelerated vesting if the Company terminates his employment without cause. The restricted stock units are payable upon vesting in shares of the Company’s common stock on a one-for-one basis. The Settlement Agreement includes Mr. Fadell’s release of claims against the Company and agreement not to solicit the Company’s employees for one year following the termination of his employment.”

[MDN]