Business Context and Reporting Period
This Form 8-K is a current report filed by Rent-A-Center, Inc. (not Upbound Group, Inc., as indicated in the metadata) on June 5, 2019. The filing addresses a material change in executive leadership under Item 5.02.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on personnel changes and associated compensation arrangements.
Material Changes
- Departure: Christopher A. Korst resigned as Executive Vice President - General Counsel effective immediately on June 5, 2019.
- Reason: The resignation was a mutual agreement and constitutes a termination without "cause" under his executive transition agreement.
- Succession: Dawn M. Wolverton, Vice President - Assistant General Counsel and Secretary, was appointed as Interim General Counsel effective June 5, 2019.
Compensation, Risks, and Contingencies
As part of the departure, Mr. Korst is entitled to specific payments and benefits:
- Unpaid but earned base salary through June 5, 2019.
- A pro rata bonus calculated based on his bonus for the year ended December 31, 2019.
- A severance payment equal to one and one-half times the sum of his highest annual salary rate in the previous 24 months and his average annual bonus for the two preceding calendar years.
Post-Employment Obligations: Mr. Korst must comply with non-compete and confidentiality covenants for a period of two years.
Investor Verification Checklist
- Verify the exact calculation of Mr. Korst's severance package against his historical salary and bonus data.
- Confirm the timeline for the appointment of a permanent General Counsel to replace the interim appointee.
- Review the referenced Executive Transition Agreement (Exhibit 10.24 to the 2016 10-K) for additional terms not detailed in this summary.