Business Context and Reporting Period
Company: Graphic Packaging Holding Company
Filing Type: Form 8-K (Current Report)
Date of Report: July 16, 2012
Event: Entry into a Material Definitive Agreement regarding the appointment of a new Senior Vice President.
Key Financial Metrics
This filing does not report consolidated financial results such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation terms.
| Compensation Component | Details |
|---|---|
| Base Salary | $340,000 annually (increasing to $350,000 on Jan 1, 2013) |
| Target Bonus | 70% of base salary |
| Severance (Termination without Cause) | 1 year base salary + welfare benefits + pro-rated bonus + up to $25,000 outplacement |
| Change in Control Severance | Additional 0.5 year base salary + 1.5x target bonus |
Material Changes
The filing reports the appointment of Allen Ennis as Senior Vice President, Flexible Division, effective July 16, 2012. This represents a change in the company's senior executive leadership structure.
Guidance, Outlook, and Risks
Management Commentary: The filing details the terms of the Employment Agreement, including automatic one-year extensions, eligibility for standard executive benefit plans, and specific termination provisions.
Risks and Contingencies: The agreement includes restrictive covenants prohibiting Mr. Ennis from working for competitors, soliciting employees, or interfering with customer relationships for one year post-employment. Financial contingencies exist for termination due to disability, death, or change in control.
Investor Verification Checklist
- Verify the full text of the Employment Agreement attached as Exhibit 10.1 for complete legal terms.
- Confirm the impact of the new leadership appointment on the Flexible Division's strategic direction.
- Review the company's total executive compensation expense in upcoming quarterly filings to assess the impact of this new agreement.
- Note that no financial performance data is provided in this specific filing.