Avery Dennison Corp. 8-K Summary
Business Context and Reporting Period
This Form 8-K Current Report was filed on February 2, 2005, regarding events that occurred on January 27, 2005. The filing pertains to Avery Dennison Corporation, a Delaware corporation, and specifically addresses the designation of two senior executives as participants in the Company's Supplemental Executive Retirement Plan (SERP).
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 agreements and does not contain financial performance data.
Material Changes
The material change reported is the execution of definitive agreements granting supplemental retirement benefits to two key officers:
- Robert G. van Schoonenberg (Executive Vice President, General Counsel and Secretary): Granted a SERP benefit equal to 51.75% of final average annual compensation at age 62 (or 57.5% at age 65). The benefit is reduced by 401(k) contributions, deferred compensation, Social Security, and amounts from qualified pension plans. Vesting occurs at age 62.
- Daniel R. O'Bryant (Senior Vice President, Finance and Chief Financial Officer): Granted a SERP benefit equal to 28.875% of final average annual compensation at age 55 (or 52.5% at age 65). Similar reductions apply regarding other retirement and Social Security benefits. Vesting occurs at age 55.
Guidance, Outlook, and Risks
The filing contains no management commentary regarding future financial guidance, market outlook, or specific business risks. The primary contingency noted is the future payment of these benefits upon the executives' retirement at the specified ages, contingent on their continued employment and the terms of the grant letters.
Investor Verification Checklist
- Verify the specific definitions of "final average annual compensation" and "bonus" within the attached Exhibit 99.1 and 99.2 grant letters.
- Confirm the total estimated liability impact of these SERP grants on the company's future pension obligations.
- Review the vesting schedules to understand the retention implications for the General Counsel and CFO.
- Check subsequent filings for any amendments to these executive compensation agreements.