Business Context and Reporting Period
This Form 8-K Current Report was filed by SS&C Technologies Holdings, Inc. on March 15, 2011. The filing addresses two primary events: the authorization of fiscal year 2010 cash bonuses for named executive officers and the completion of a partial redemption of senior subordinated notes by its subsidiary, SS&C Technologies, Inc.
Key Financial Metrics and Compensation
The filing details specific executive compensation adjustments and debt reduction activities rather than providing broad operational financial metrics such as revenue or cash flow.
- Executive Bonuses (Fiscal 2010): The Compensation Committee approved cash bonuses totaling $3,535,000 for four named executive officers.
- Debt Redemption: The subsidiary redeemed $66,625,000 in aggregate principal amount of its 11 3/4% Senior Subordinated Notes due 2013.
- Remaining Debt: The outstanding principal amount of the notes following the redemption is $66,625,000.
| Executive Officer | Fiscal 2010 Bonus | Total Compensation (Original) | Total Compensation (Recalculated) |
|---|---|---|---|
| William C. Stone (CEO) | $2,000,000 | $4,604,281 | $6,604,281 |
| Normand A. Boulanger (COO) | $875,000 | $1,616,906 | $2,491,906 |
| Patrick J. Pedonti (CFO) | $400,000 | $941,042 | $1,341,042 |
| Stephen V. R. Whitman (General Counsel) | $260,000 | $628,552 | $888,552 |
Material Changes
Compensation Disclosure: The Summary Compensation Table in the previously filed Form S-1 Registration Statement and Prospectus (effective February 3, 2011) did not include 2010 bonus amounts as they were not yet determined. This filing corrects the record by disclosing the approved bonuses and recalculating total compensation for the named executives.
Capital Structure: The company executed a partial redemption of its 11 3/4% Senior Subordinated Notes, reducing the total principal amount outstanding by half (from $133,250,000 to $66,625,000).
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future operations, or specific risk factors beyond the standard disclosure of the events reported. The redemption of notes indicates a strategic move to reduce interest expense obligations, though the filing does not explicitly state the source of funds used for the redemption.
Investor Verification Checklist
- Verify the impact of the $3.535 million in executive bonuses on the company's cash flow and net income for fiscal year 2010.
- Confirm the source of funds used to redeem the $66.625 million in senior subordinated notes.
- Review the remaining debt service obligations associated with the outstanding $66.625 million in 11 3/4% notes due 2013.
- Check subsequent filings to ensure the recalculated compensation figures are reflected in updated proxy statements or annual reports.