Just after the markets closed Monday, Red Hat (NYSE: RHT) disclosed that it had added Deutsche Bank Chief Information Officer Kim Hammonds to its board of directors.

And she receives a compensation package that includes $550,000 in stock plus cash or stock totaling $92,500 a year.

Hammonds also is co-head of Group Technology and Operations at Deutsche Bank.

The compensation plan for Hammonds was spelled out in an SEC filing. She can chose stock options or cash for her annual pay. The $550,000 in stock is spread over three years.

The Red Hat board now contains 10 members. At its annual shareholders meeting last week, Red Hat CEO Jim Whitehurst along with Sohaib Abbasi, Charlene Begley, Narendra Gupta, William Kaiser and Donald Livingstone were elected to one-year terms.

“We are pleased to welcome Kim Hammonds to our board. With her extensive leadership experience in information technology with multinational corporations, she will bring a deep understanding of technology and a perspective on enterprise demand for technology to the board. This is a great fit for Red Hat, which helps enterprises leverage the power of open source to meet the challenges of today’s global business climate,” said H. Hugh Shelton, chairman of Red Hat’s board, in a statement.

Hammonds has worked at Deutsche Bank since November 2013. She previously worked at  Boeing as CIO. Earlier. Hammonds worked for Dell and at Ford. She is a graduate of University of Michigan with a degree in mechanical engineering. Later Hammonds earned an MBA at Western Michigan.

How she will be paid

The compensation package for Hammonds as spelled out in the SEC filing:

“Ms. Hammonds will be compensated under the compensation plan currently in effect for the Company’s non-employee directors, the 2010 Non-Employee Director Compensation Plan (the “Director Compensation Plan”). Under the Director Compensation Plan, she will be eligible to receive an annual cash retainer of $50,000 for her service as a member of the Board. In addition, the Director Compensation Plan provides for the following annual cash retainers for service on committees of the Board: (i) $20,000 for service on the Audit Committee; (ii) $15,000 for service on the Compensation Committee; and (iii) $7,500 for service on the Nominating and Corporate Governance Committee.

“Under the Director Compensation Plan, a director may elect to receive all or a portion of any cash compensation in the form of the Company’s deferred stock units (“DSUs”). DSUs represent the right to receive shares of the Company’s common stock (“Common Stock”) at a future date. The number of DSUs to be granted is determined by dividing the portion of the cash compensation with respect to which the election is made by the closing price of a share of Common Stock on the date the cash compensation is due to be paid. DSUs issued in lieu of cash compensation are fully vested upon issuance and will be settled in shares of Common Stock upon termination of service on the Board.

“In connection with her election to the Board, Ms. Hammonds will be granted, on the next regularly scheduled grant date for employees, a restricted stock award equal to a number of shares of Common Stock determined by dividing $300,000 by the closing price of a share of Common Stock on the date of grant. These shares of restricted stock will vest equally over a three-year period on the anniversary of the date of grant.

“In addition to an initial equity grant, Ms. Hammonds will be eligible to receive an annual equity award consisting of a restricted stock award for a number of shares of Common Stock determined by dividing $250,000 by the closing price of a share of Common Stock on the date of grant. These shares of restricted stock will vest on the first anniversary of the grant date. Under the Director Compensation Plan, directors may also elect to receive DSUs on a one-for-one basis in lieu of any annual restricted stock award. These DSUs would vest on the same basis as the annual restricted stock award and will be settled in shares of Common Stock upon termination of service on the Board.”