Avery Dennison Corp. 8-K Summary
Business Context and Reporting Period
This Form 8-K was filed on August 27, 2013, by Avery Dennison Corporation, a Delaware corporation. The report addresses Item 5.02 regarding the appointment of certain officers and their compensatory arrangements.
Key Financial Metrics
The filing does not provide general financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. It focuses exclusively on specific executive compensation terms.
Material Changes
On August 27, 2013, the Company entered into a letter of understanding with Donald A. Nolan, President of the Materials Group, regarding his expatriate assignment in The Netherlands. Key compensation terms include:
- Base Salary: $620,026
- Target Annual Incentive Plan: 75% of base salary
- Executive Benefit Allowance: $65,000 annually
- Goods and Services Differential: $5,534 per month plus taxes
- Housing Allowance: Actual cost up to a maximum of $8,000 per month (subject to offset by U.S. housing costs)
- Relocation Allowance: One-time payment of $51,669 plus taxes
- Spousal Allowance: $650 per month
- Other Benefits: Payment of utilities and moving costs, home leave cash allowance, and automobile allowance.
Guidance, Outlook, and Risks
The filing contains no guidance, outlook, management commentary on business performance, or discussion of risks and contingencies beyond the specific terms of the executive agreement.
Investor Verification Checklist
- Verify the commencement date of Mr. Nolan's assignment (anticipated October 1, 2013).
- Review the 2013 Proxy Statement filed on March 8, 2013, for details on pension, savings, deferred compensation, and severance plans referenced in the agreement.
- Confirm the calculation method for the housing allowance offset against current U.S. housing costs.
- Check for any subsequent filings regarding the actual utilization of the relocation and housing allowances.