Business Context and Reporting Period
This Form 8-K Current Report was filed by Colgate-Palmolive Company on September 16, 2013, regarding events occurring on September 12, 2013. The filing addresses corporate governance matters specifically related to executive compensation arrangements.
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 the amendment of an executive severance plan and does not contain financial performance data.
Material Changes
The Board of Directors renewed the Executive Severance Plan for an additional term expiring on September 30, 2018. A material change was made to the calculation of the bonus component within the severance amount:
- Previous Method: The higher of the average of the three highest annual bonus awards in the last five years or the target bonus for the year of termination.
- New Method: The average of the last three years' annual bonus awards.
Guidance, Outlook, and Risks
The filing contains no guidance, outlook, or management commentary regarding future financial performance. The primary contingency noted is the updated terms of the Executive Severance Plan, which are now effective through September 30, 2018. The full text of the amended plan is attached as Exhibit 10-A.
Investor Verification Checklist
- Verify the specific impact of the bonus calculation change on potential severance payouts for key executives.
- Review Exhibit 10-A (Colgate-Palmolive Company Executive Severance Plan) for complete terms and conditions.
- Confirm the expiration date of the renewed plan (September 30, 2018).