Business Context and Reporting Period
This Form 8-K Current Report was filed by Air Products & Chemicals, Inc. on November 14, 2007. The report details amendments to the Corporate Executive Committee Separation Program, effective January 1, 2008.
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 executive compensation arrangements.
Material Changes
The Company amended and restated its Corporate Executive Committee Separation Program. The changes apply to the Corporate Executive Committee (CEC), including CEO John E. McGlade and other senior officers. The amendments increase or clarify severance benefits payable upon involuntary termination without cause or constructive termination.
Guidance, Outlook, and Management Commentary
There is no financial guidance, outlook, or discussion of risks and contingencies in this filing. The document outlines specific compensatory arrangements:
- CEO Severance: John E. McGlade is eligible for two times annual base salary and target annual incentive award, plus a pro-rated annual incentive award for the year of termination.
- Other CEC Severance: Other members are eligible for one times annual base salary and target annual incentive award, plus a pro-rated annual incentive award.
- Retirement Benefits: An additional cash payment approximating retirement benefits for two years post-termination for Mr. McGlade and one year for other CEC members.
- Equity Vesting: Stock options exercisable at termination remain exercisable for their full term. Restricted stock and deferred stock units subject to time-based vesting vest pro-rata, except career vesting awards which vest in full. Performance-based deferred stock units vest pro-rata at target performance levels.
Important Facts for Investors to Verify
- The effective date of the amended separation program is January 1, 2008.
- Specific exclusions apply to Long-Term Incentive Plan awards granted prior to the effective date for Mr. McGlade, Mr. Huck, and Ms. Minella, which remain subject to prior program terms.
- The filing does not disclose the total potential liability or cost associated with these amended severance packages.