Business Context and Reporting Period
This Form 8-K Current Report was filed by Leidos Holdings, Inc. on June 5, 2017. The filing discloses the departure of a senior executive officer and the terms of his retirement agreement.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity metrics. The only financial figure disclosed relates to executive compensation.
- Executive Compensation: Approximately $2 million (aggregate amount) to be paid to the departing officer, less applicable tax withholdings.
Material Changes
The primary material change is the announced retirement of Vincent A. Maffeo, Executive Vice President and General Counsel. His departure is anticipated to be effective on July 15, 2017.
Management Commentary and Unusual Items
Management entered into a Retirement Agreement with Mr. Maffeo on June 5, 2017. Key terms include:
- Continuation of base salary through the Retirement Date.
- Payment of the approximately $2 million severance in consideration for restrictions on competitive activities, non-disparagement, non-solicitation, cooperation, and a release of claims.
- Continued vesting of all outstanding equity awards in accordance with existing award agreements.
Investor Verification Checklist
- Verify the exact effective date of Mr. Maffeo's retirement (anticipated July 15, 2017).
- Review the full Retirement Agreement filed as Exhibit 10.1 for specific details on non-compete restrictions and equity vesting schedules.
- Confirm the appointment of a successor to the Executive Vice President and General Counsel role.