Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Led by the Board of Directors (the "Board") of
To maintain the stability and continuity of the Company's workforce and minimize distractions arising from the uncertainty associated with its compensation program, the Company's annual incentive plan will be converted into an opportunity for our senior executives (including our named executive officers) (the "Retention Bonus Recipients") to receive a retention payment pursuant to the terms of a retention bonus agreement (the "Retention Bonus Agreement") and for certain of other employees, as designated by the Compensation Committee from time to time, to receive periodic lump-sum retention payments subject to the terms of a key employee retention plan ("KERP"), as each are described below. The Company and the Board believe the revised compensation programs' emphasis on retention is essential to keep employees and executives engaged and focused on the tasks necessary to achieve the Company's short- and long-term goals. The retention programs under the Retention Bonus Agreement and KERP for the Company's executive officers and other employees replace the traditional incentive compensation programs for 2023.
Retention Bonus Agreement:
The Company will replace the Retention Bonus Recipients' current 2023 annual
bonus or short-term incentive opportunity and a specified percentage of the
Retention Bonus Recipient's annual target long-term incentive compensation
opportunity for 2023 with an opportunity to receive a retention payment (the
"Retention Bonus") that will be paid immediately, but the entire after-tax
amount will be subject to repayment if the Retention Bonus Recipient's
employment with the Company terminates prior to a specified date occurring no
later than
Key Employee Retention Plan:
The Company will replace the 2023 annual bonus or short-term incentive opportunities and fifty percent of annual target long-term incentive compensation opportunities for certain of its other employees (the "Plan Participants") with an opportunity for the Plan Participants to earn a bonus payment at the end of each of the four specified Retention Periods set forth in the KERP. Each Plan Participant is required to remain employed through the end of the applicable Retention Period, but a Plan Participant whose employment with the Company or subsidiary of the Company terminates for any reason other than due to the Plan Participant's death or disability or by the Company for "cause" will receive a pro-rata portion of the bonus payment for the Retention Period that the termination occurred.
A total aggregate of approximately
The above summary of the Retention Bonus Agreements and KERP is qualified in its entirety by reference to the complete terms and conditions as set forth in the Retention Bonus Agreement, the form of which is filed herewith as Exhibit 10.1 to this Current Report on Form 8-K and incorporated by reference into this Item 5.02 and the Key Employee Retention Plan, which is filed herewith as Exhibit 10.2 to this Current Report on Form 8-K and incorporated by reference into this Item 5.02.
Item 9.01. Financial Statement and Exhibits. (d) Exhibits. Exhibit Number Description 10.1 Form of Retention Bonus Agreement 10.2 Key Employee Retention Plan 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
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