8-KLeadership ChangesRegulation FDExhibits & Filings

ARCH CAPITAL GROUP LTD. 8-K Report, Executive Changes (Dec 29, 2020)

Filed December 29, 2020For Securities:ACGLACGLNACGLO

Summary

Arch Capital Group Ltd. (ACGL) announced a significant leadership transition effective January 1, 2021. Nicolas Papadopoulo has been promoted to President and Chief Underwriting Officer, a newly created role with expanded responsibilities over the company's insurance, reinsurance, and mortgage segments, as well as strategy and innovation. This promotion reflects Mr. Papadopoulo's long tenure and deep experience within the company since 2001, most recently as Chairman and CEO of Arch Worldwide Insurance Group. Concurrently, Marc Grandisson will step down from his role as President, while continuing as CEO. This organizational change clarifies reporting lines, with Mr. Papadopoulo overseeing the core operating segments and strategy, and Mr. Grandisson retaining oversight of corporate functions like finance, investments, and legal. Mr. Papadopoulo's compensation has been adjusted to reflect his increased responsibilities, including higher base salary and incentive targets.

Key Highlights

  • 1Nicolas Papadopoulo promoted to President and Chief Underwriting Officer, effective January 1, 2021.
  • 2Mr. Papadopoulo will oversee the Company's insurance, reinsurance, and mortgage segments, plus strategy and innovation.
  • 3Marc Grandisson will remain CEO but will cease serving as President.
  • 4Reporting structure clarified: Mr. Papadopoulo to lead operating segments and strategy; Mr. Grandisson to oversee finance, investments, and legal.
  • 5Mr. Papadopoulo's annual base salary increased from $750,000 to $800,000.
  • 6Target annual short-term incentive increased from 135% to 150% of base salary.
  • 7Target annual long-term incentive increased from 200% to 300% of base salary.

Frequently Asked Questions

The primary change is the promotion of Nicolas Papadopoulo to President and Chief Underwriting Officer, effective January 1, 2021. This role gives him oversight of Arch Capital's core operating segments (insurance, reinsurance, mortgage) and its strategy and innovation team. Marc Grandisson will continue as CEO but will no longer serve as President.

The change streamlines leadership by assigning responsibility for the core business segments and forward-looking strategy to Mr. Papadopoulo, while Mr. Grandisson retains control over crucial corporate functions like finance, investments, and legal. This clarifies operational leadership and responsibility.

In connection with his new role, Mr. Papadopoulo's compensation has been adjusted. His annual base salary increases from $750,000 to $800,000. His target short-term incentive rises from 135% to 150% of his base salary, and his target long-term incentive award increases from 200% to 300% of his base salary.

No, Marc Grandisson is not leaving the company. He will continue in his role as Chief Executive Officer (CEO) of Arch Capital Group Ltd. He is stepping down from the position of President, effective January 1, 2021.