Xylem Inc. 8-K Summary
Business Context and Reporting Period
This Form 8-K Current Report was filed by Xylem Inc. on October 28, 2013. The report discloses a material event regarding the departure of a senior executive officer.
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 and personnel changes.
Material Changes
On October 28, 2013, Michael Kuchenbrod resigned from his positions as Senior Vice President of Xylem Inc. and President of Water Solutions, effective immediately. A Separation Agreement was executed on the same date.
Management Commentary and Compensation Details
- Severance and Benefits: The agreement provides for severance pay, continuation of health benefits, and continued vesting/exercisability of certain equity-based awards in accordance with the Senior Executive Severance Pay Plan for terminations without cause.
- Incentive Payment: A lump sum payment in lieu of the Annual Incentive Plan payout is provided, prorated based on Company performance and payable in 2014.
- Conditions: Severance, the lump sum payment, and continued health benefits are subject to Mr. Kuchenbrod's compliance with restrictive covenants included in the Separation Agreement.
Investor Verification Checklist
- Verify the specific terms of the Senior Executive Severance Pay Plan referenced in the agreement.
- Confirm the exact calculation methodology for the prorated Annual Incentive Plan lump sum payment.
- Review the specific restrictive covenants required for the executive to receive the agreed-upon benefits.
- Check for any subsequent filings regarding the appointment of a replacement for the President of Water Solutions.