Business Context and Reporting Period
This Form 8-K Current Report was filed by Deluxe Corporation on September 18, 2006. The filing discloses the entry into a material definitive agreement and the appointment of a new Chief Financial Officer (CFO).
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity metrics. It focuses exclusively on executive compensation terms.
- Base Salary: $350,000 annualized for the new CFO.
- 2006 Bonus: Up to 25% of the Annual Incentive Plan target based on earned salary and company performance.
- Restricted Stock Grant: One-time grant valued at $100,000 (based on closing price on October 2, 2006), vesting on October 2, 2008.
- Relocation Reimbursement: Up to $50,000.
- 2007 Bonus Target: 50% of base pay (maximum 100%).
- Perquisites: $15,000 annual taxable cash allowance; financial counseling and tax preparation services up to $9,000 plus tax gross-up.
Material Changes
Richard S. Greene was appointed to succeed Terry D. Peterson as Chief Financial Officer, effective October 2, 2006. Mr. Peterson, who served as interim CFO since May 5, 2006, will transition to the role of Vice President, Controller, and Chief Accounting Officer.
Outlook, Risks, and Management Commentary
The filing includes a press release (Exhibit 99.1) announcing the appointment. Mr. Greene brings experience from Tyco International Ltd. and Honeywell International. The Compensation Committee retains discretion to adjust salary and review the Long-Term Incentive Program annually. Standard executive severance and retention agreements will be executed.
Investor Verification Checklist
- Verify the vesting schedule and performance conditions of the $100,000 restricted stock grant.
- Confirm the specific terms of the standard executive severance and retention agreements referenced in the filing.
- Review the press release (Exhibit 99.1) for additional strategic context regarding the leadership change.
- Monitor future filings for the actual 2006 bonus payout and 2007 incentive plan targets.