Business Context and Reporting Period
This Form 8-K filing by First Advantage Corporation (Delaware) was submitted on August 12, 2009. The report discloses the execution of new Employment Agreements with six senior executives effective August 10, 2009.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity metrics. It focuses exclusively on executive compensation terms.
| Executive | Role | Annual Base Salary |
|---|---|---|
| Anand Nallathambi | CEO | $700,000 |
| John Lamson | CFO | $375,000 |
| Todd Mavis | EVP Operations | $375,000 |
| Akshaya Mehta | EVP Corporate Infrastructure | $345,000 |
| Evan Barnett | President, Multi-Family Services | $297,400 |
| Andrew Macdonald | President, Investigative Services | $295,000 |
Material Changes
The primary material change is the formalization of compensation packages for the executive team. The agreements establish fixed base salaries and define specific severance and non-competition payments triggered by termination without cause or for "good reason."
Guidance, Outlook, and Risks
Contract Terms: Initial terms end December 31, 2011, with automatic annual renewals unless 60 days' notice is provided.
Severance Provisions:
- CEO: Entitled to $1,050,000 severance and $1,050,000 non-competition payment, each payable over 24 months.
- CFO and EVP Operations: Entitled to 50% of base salary for 18 months for both severance and non-competition.
- Other Executives: Entitled to 50% of base salary for 12 months for both severance and non-competition.
Investor Verification Checklist
- Verify the total potential cash outflow for severance and non-competition payments if all six executives were terminated simultaneously without cause.
- Confirm the definition of "good reason" within the specific Employment Agreements to understand termination triggers.
- Review the company's current cash position to assess the liquidity impact of the CEO's $2.1 million potential payout obligation.
- Check for any subsequent filings regarding the actual performance or retention of these executives post-August 2009.