Business Context and Reporting Period
This Form 8-K filing by Avery Dennison Corporation, dated March 15, 2017 (signed March 20, 2017), reports significant changes in corporate governance and management. The filing addresses the departure of the Chief Financial Officer and the appointment of an interim successor.
Key Financial Metrics
The filing text does not provide revenue, profit, cash flow, margins, debt, or liquidity metrics. This report focuses exclusively on executive compensation and personnel changes.
Material Changes
- Departure of CFO: Anne L. Bramman ceased serving as Senior Vice President and Chief Financial Officer on March 19, 2017, and is expected to depart the company following a brief transition period.
- Appointment of Interim CFO: Gregory S. Lovins was elected Vice President and Interim Chief Financial Officer, effective March 20, 2017. Mr. Lovins previously served as Vice President and Treasurer since August 2016.
Compensation and Management Commentary
The Compensation and Executive Personnel Committee determined the following compensation package for Mr. Lovins in connection with his new role:
- Base Salary: Current annual base salary of $424,360.
- Stipend: Additional monthly cash stipend of $10,000 for increased responsibilities. This stipend excludes annual/long-term incentive calculations and ceases when the interim role ends.
- Annual Incentive Plan (AIP): Current target of 40% plus an additional 20% target while serving as Interim CFO.
- Long-Term Incentive: Current target opportunity of 120%.
- Benefits: Up to $4,500 per month for temporary housing near Glendale, California headquarters; annual executive benefit allowance of $40,000; eligibility for pension, savings, deferred compensation, and executive severance plans.
Investor Verification Checklist
- Verify the exact timeline of Anne L. Bramman's departure and the duration of the transition period.
- Confirm the duration of Gregory S. Lovins' interim tenure and the timeline for a permanent CFO search.
- Review the 2017 Proxy Statement (filed March 10, 2017) for details on the pension, savings, and severance plans referenced in the compensation package.
- Monitor future filings for the appointment of a permanent Chief Financial Officer.