Business Context and Reporting Period
Company: BankUnited, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: May 20, 2011
Date of Earliest Event: May 18, 2011
Context: The filing reports amendments to the employment agreements of Douglas J. Pauls, Chief Financial Officer of the Company and its subsidiary, BankUnited.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation arrangements.
Material Changes
The material change reported is the amendment of employment agreements for the Chief Financial Officer, effective May 18, 2011. The amendments align Mr. Pauls' severance benefits with those generally provided to other named executive officers.
Management Commentary and Unusual Items
Severance Entitlements:
- Termination without cause or resignation for good reason: Mr. Pauls is entitled to two times the sum of his base salary and the preceding fiscal year's bonus (minus the present value of other cash severance benefits), payable within 60 days. Additionally, he receives continued group health coverage for up to 24 months (or until eligible for comparable coverage elsewhere). If coverage cannot be provided for more than 18 months, premium amounts are paid in cash.
- Termination due to death or disability: Mr. Pauls (or his estate) and dependents receive continued group health coverage at the Company's sole expense for 24 months. If coverage cannot be provided for more than 18 months, premium amounts are paid in cash.
Investor Verification Checklist
- Review Exhibit 10.1 and 10.2 for the complete legal terms of the employment amendments.
- Verify the specific base salary and bonus figures for the preceding fiscal year to calculate potential severance liability.
- Confirm the Company's current policy on severance for other named executive officers to ensure consistency.
- Check subsequent filings for any changes to Mr. Pauls' employment status or further compensation adjustments.