UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): March 22, 2011

Red Hat, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

(919) 754-3700

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

On March 22, 2011, the Board of Directors (the “Board”) of Red Hat, Inc. (the “Company”) elected Sohaib Abbasi and W. Steve Albrecht to serve on the Board, effective immediately. A press release announcing the elections was issued on March 28, 2011, and is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K.

Mr. Abbasi is a Class III director with a term expiring in 2011. Mr. Abbasi is the Chairman and Chief Executive Officer of Informatica Corporation (NASDAQ: INFA).

Dr. Albrecht, who previously served on the Board from April 2003 until his resignation in June 2009, is a Class II director with a term expiring in 2013. Dr. Albrecht is the Andersen Alumni Professor of Accounting at the Marriott School of Management at Brigham Young University.

Their election brings the size of the Board to ten members. There are no arrangements or understandings pursuant to which either Mr. Abbasi or Dr. Albrecht was selected as a director. Neither Mr. Abbasi nor Dr. Albrecht has yet been appointed to any committees of the Board.

Both Mr. Abbasi and Dr. Albrecht 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 “2010 Director Compensation Plan”). Under the 2010 Director Compensation Plan, each will be eligible to receive an annual cash retainer of $50,000 for his service as a member of the Board. In addition, the 2010 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 2010 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 their election to the Board, Mr. Abbasi and Dr. Albrecht will each 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, each of Mr. Abbasi and Dr. Albrecht 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 $175,000 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. However, shares granted to each of Mr. Abbasi and Dr. Albrecht in connection with his first annual equity award in 2011 will be prorated based on the number of months of service as of the grant date. Under the 2010 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.

The foregoing description of the terms of the 2010 Director Compensation Plan does not purport to be complete and is qualified in its entirety by the provisions of the 2010 Director Compensation Plan, which was filed as Exhibit 10.59 to the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2010, and is incorporated herein by this reference.

The Company does not pay meeting fees. Non-employee directors are reimbursed for reasonable out-of-pocket expenses incurred in attending meetings of the Board and meetings of any committees of the Board on which they serve.

Each of Mr. Abbasi and Dr. Albrecht has entered into an indemnification agreement with the Company. In general, the indemnification agreement provides that the Company will, to the fullest extent permitted by law, and subject to certain limitations and exceptions, indemnify the indemnitee against expenses, judgments, fines, penalties and amounts paid in settlement that may be incurred in connection with the defense or settlement of threatened, pending or completed proceedings to which the indemnitee becomes subject in connection with his service as director of the Company.

The indemnification agreement provides for indemnification rights regarding both third-party claims and proceedings brought by or in the right of the Company. In addition, the indemnification agreement provides for the advancement of expenses incurred by the indemnitee under certain circumstances. The indemnification agreement is not exclusive of any other rights to indemnification or advancement of expenses to which the indemnitee may be entitled, including any rights arising under the charter or bylaws of the Company, a separate agreement with the Company, or applicable law.

The foregoing summary of the indemnification agreement is qualified in its entirety by reference to the provisions of the Form of Indemnification Agreement, a copy of which was filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on February 28, 2007, and incorporated herein by this reference.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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