Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On May 13, 2009, the Compensation Committee of the Board of Directors of Cadence Design Systems, Inc. ("Cadence") approved and accepted the voluntary reduction of the base salaries of each of Cadence's executive officers, effective July 1, 2009 through March 31, 2010. During this period, the base salary of Lip-Bu Tan, Cadence's President and Chief Executive Officer will be reduced by 20% and the base salary of each of Cadence's Senior Vice Presidents will be reduced by 10%. This base salary reduction was volunteered by the executive officers in support of Cadence's cost reduction strategy and commitment to operational efficiency. Item 8.01. Other Events.
On May 13, 2009, Cadence's Board of Directors voluntarily reduced the retainer fees payable to its non-employee directors and the retainer fee payable to the Chairman of the Board by 10% each, effective July 1, 2009 through March 31, 2010.
In connection with Cadence's overall cost reduction strategy, Cadence expects to reduce the base salaries of certain other senior employees, specifically by 5% to 7.5% for fellows, vice presidents and corporate vice presidents, depending on level of seniority.

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