Business Context and Reporting Period
This Form 8-K is filed by WellPoint, Inc. (now Elevance Health, Inc.) on July 22, 2005. The report details the entry into a Material Definitive Agreement regarding post-employment benefits for former Chairman Leonard D. Schaeffer, whose employment terminated on January 31, 2005.
Key Financial Metrics
The filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. It focuses exclusively on specific contractual costs associated with the agreement:
- Annual Rent: $186,000 per year.
- Annual Parking Charges: $6,000 per year.
- One-Time Build-Out Cost: $240,000.
- Lease Commencement: September 1, 2005.
- Lease Term: Ending on the later of November 30, 2011, or 6 years from commencement.
Material Changes
The agreement amends Mr. Schaeffer's original Employment Agreement. While the original agreement provided for office space and clerical support for five years following the termination of his employment, the new agreement clarifies that this support is provided for five years following his termination as Chairman. Additionally, the agreement explicitly provides for office space and support while he serves as Chairman to facilitate his duties.
Outlook and Management Commentary
Management has secured a lease for the required office space at a location selected by the Company in consultation with Mr. Schaeffer. The filing notes that the Company will incur the specified one-time build-out cost and ongoing annual rent and parking charges as outlined above. No other risks, contingencies, or unusual items are disclosed in this specific report.
Investor Verification Points
- Verify the total long-term liability impact of the lease term (up to 6 years) plus the one-time build-out cost.
- Confirm the distinction between the termination of employment (Jan 31, 2005) and the termination of the Chairman role regarding the 5-year benefit period.
- Review the original Employment Agreement filed in December 2002 to compare the scope of benefits before this amendment.