SiliconBeat

Network Equipment Technologies reported issuing a block of shares of restricted stock on Monday to its employees, including its executive officers, “intended primarily to approximately offset temporary salary reductions” which began being imposed for a six-month period beginning with the company’s April 3 payroll.

The company issued 252,818 shares, with one-half of the shares vested immediately and one-half to vest Aug. 5, so long as individuals are still employed through that date. About 40 percent of the shares vesting on each date will be surrendered back to the company in payment of witholding taxes.

Shares of Network Equipment closed Monday at $3.69, making the value of the restricted stock vested that day worth $466,449, before subtracting witholding taxes.

In other news, the company released details of the severance agreement it reached with Gary Lau, the company’s former senior vice president for government sales, who retired April 15 after 22 years with the company. Lau, 60, will get two years of salary and have his health benefits covered for 18 months. He’ll also be allowed to exercise any of his stock options with a strike price of $7 or less over the course of the next two years. Employees typically have 90 days after leaving a company’s employment in which to exercise vested options.

In exchange, Lau agrees to “ongoing covenants not to compete with the company or engage in certain other activities.” Isn’t that what retirement’s all about?