Business Context and Reporting Period
Company: Asbury Automotive Group, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: November 10, 2004
Event Date: November 8, 2004
Context: The filing reports the entry into a material definitive agreement regarding the employment of the Company's President and Chief Executive Officer, Kenneth B. Gilman.
Key Financial Metrics
This filing does not contain financial performance data. There are no reported values for revenue, profit, cash flow, margins, debt, or liquidity in this document.
Material Changes
The material change reported is the execution of the Second Amendment to the Employment Agreement for Kenneth B. Gilman, effective November 8, 2004. Key changes include:
- Term Extension: Mr. Gilman's employment term is renewed for an additional year through December 31, 2005.
- Compensation Structure: Incentive compensation is now payable pursuant to the Company's Key Executive Incentive Compensation Plan, while base salary and severance provisions remain unchanged.
- Medical Reimbursement: The Company will reimburse Mr. Gilman for medical expenses (deductibles, co-payments, co-insurance, and amounts above usual levels) incurred during the term that are eligible under the group plan but not reimbursed by it.
- Post-Termination Coverage: Upon termination without "Good Cause," Mr. Gilman may elect to continue participation in the Company's medical insurance plan at his own expense under specific conditions.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary regarding future business performance. No specific risks or contingencies related to the Company's operations are disclosed in this report, other than the standard legal contingencies associated with the employment agreement terms.
Investor Verification Checklist
- Verify the specific terms of the "Key Executive Incentive Compensation Plan" referenced in the amendment.
- Review the definition of "Good Cause" within the employment agreement to understand termination conditions.
- Confirm the total potential cost of the new medical expense reimbursement provision to the Company.
- Check subsequent filings for any further amendments to Mr. Gilman's compensation or term.