Avery Dennison Corp. 8-K Summary
Business Context and Reporting Period
This Form 8-K Current Report was filed on July 10, 2017, by Avery Dennison Corporation. The filing addresses corporate governance changes, specifically the appointment of a new Chief Financial Officer effective July 11, 2017.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity metrics. It focuses exclusively on executive compensation details:
- Base Salary: $550,000 annually.
- Annual Incentive Plan (AIP): Target of 60% of base salary (prorated for 2017).
- Long-Term Incentive (LTI): Target of 180% of base salary, commencing with the February 2018 grant.
- Special Promotion Grant: Restricted stock units with a grant date fair value of approximately $550,000, vesting over four years.
- Executive Benefit Allowance: Increased from $40,000 to $65,000 annually.
- Relocation: Eligible for taxable relocation assistance or a one-time lump-sum payment of $100,000 (less taxes).
Material Changes
The primary material change is the transition of Gregory S. Lovins from Vice President and Interim Chief Financial Officer to Senior Vice President and Chief Financial Officer. This appointment ends his temporary housing allowance of up to $4,500 per month and adjusts his compensation structure to reflect a permanent executive role.
Outlook, Risks, and Contingencies
The filing outlines specific contingencies regarding the relocation package: if Mr. Lovins leaves the company within 12 months of relocation, he must repay 100% of the benefits; if he leaves within 24 months, he must repay 50%. The filing does not contain forward-looking guidance on company performance or discuss general business risks.
Key Facts for Investor Verification
- Gregory S. Lovins was elected Senior Vice President and Chief Financial Officer effective July 11, 2017.
- Mr. Lovins received a special promotion grant of restricted stock units valued at approximately $550,000.
- The 2017 Annual Incentive Plan award is prorated based on his interim role for the first six months and permanent role for the second six months.
- Relocation benefits include a clawback provision if employment terminates within 24 months.