Business Context and Reporting Period
This Form 8-K Current Report was filed by Essential Properties Realty Trust, Inc. on March 16, 2020. The filing discloses material corporate governance changes regarding the executive leadership team, specifically the departure of the Chief Financial Officer and the appointment of an interim replacement.
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 personnel changes and associated compensation arrangements rather than operational financial performance.
Material Changes
- Departure of CFO: Hillary P. Hai resigned as Executive Vice President, Chief Financial Officer, and Treasurer effective March 16, 2020.
- Appointment of Interim CFO: Anthony K. Dobkin, a member of the Board of Directors, was elected as Interim Chief Financial Officer effective March 16, 2020, to serve until a permanent successor is hired.
Management Commentary, Risks, and Unusual Items
Separation Agreement Details
Ms. Hai will serve as an advisor during a transition period ending April 30, 2020. Her separation package includes:
- Severance equal to 12 months of her current base salary.
- A pro rata target bonus for 2020.
- Monthly reimbursement for health benefits (COBRA) for 12 months post-separation.
- Vesting of outstanding unvested time-based equity awards.
- Vesting of outstanding unvested performance-based equity awards based on actual performance through the separation date.
Interim CFO Compensation
Mr. Dobkin will be compensated on a pro rata basis at an annual base rate of $275,000. He is also entitled to a target annual cash bonus equal to 100%-150% of his base compensation, pro-rated for the actual period of service.
Investor Verification Checklist
- Verify the exact terms of the Separation Agreement filed as Exhibit 10.1.
- Monitor the timeline for the search and appointment of a permanent Chief Financial Officer.
- Review the press release (Exhibit 99.1) for any additional context on the leadership transition.
- Assess the impact of the CFO transition on upcoming financial reporting cycles.