Business Context and Reporting Period
Company: Global Payments Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: March 1, 2010
Subject: Entry into a Material Definitive Agreement regarding the employment of the Executive Vice President and Chief Financial Officer.
Key Financial Metrics
This filing does not contain financial performance data. Revenue, profit, cash flow, margins, debt, and liquidity metrics are not reported in this document.
Material Changes
The primary material event reported is the execution of a new Employment Agreement with David E. Mangum, Executive Vice President and Chief Financial Officer, effective March 1, 2010.
Management Commentary and Agreement Details
- Term: Initial term of three years.
- Compensation: Base annual salary subject to annual review, plus an annual at-risk incentive bonus based on specific objectives.
- Benefits: Participation in all incentive, savings, and welfare benefit plans available to executive officers.
- Restrictions: 24-month post-termination non-disclosure, non-compete, and non-solicitation (customers and employees) clauses.
- Termination: The agreement may be terminated by the Company for "cause," "poor performance," or no reason, and by Mr. Mangum with or without "good reason." Termination also occurs upon death, disability, or retirement.
- Severance: Entitlement to certain severance benefits depends on the reason for and timing of termination.
Investor Verification Checklist
- Review the full text of the Employment Agreement (Exhibit 10.1) for specific definitions of "cause," "poor performance," and "good reason."
- Verify the specific severance benefit calculations and triggers outlined in the agreement.
- Confirm the specific performance objectives tied to the annual at-risk incentive bonus.