01—Abstract
Summary
Summary of the 8-K filed March 1, 2012. Cited figures are marked; the original filing is the authoritative source.
Accenture plc (ACN) filed an 8-K on March 1, 2012, to report the immediate resignation of Kevin Campbell, Group Chief Executive of the Technology growth platform.
The filing details a separation agreement reached with Mr. Campbell, which includes a 12-month non-compete and non-solicitation period in exchange for specific financial and equity compensation. This separation is notable for the executive level and the terms of the agreement.
Investors should note the value of the separation package, which includes $3 milliona in cash payments over 12 months and the accelerated vesting of a significant number of restricted share units, contingent on company performance goals for a portion. The agreement also contains provisions for forfeiture of payments and accelerated equity if Mr. Campbell breaches his restrictive covenants, offering a degree of protection to Accenture.
02—Key points
Key Highlights
- Immediate resignation of Kevin Campbell, Group Chief Executive of the Technology growth platform, effective March 1, 2012.
- Separation agreement includes a 12-month non-compete and non-solicitation clause for Mr. Campbell.
- Mr. Campbell will receive $3 million in cash payments spread over 12 months.
- Unvested equity, including restricted share units (RSUs) and dividend shares, will vest as part of the agreement.
- A portion of the RSUs is performance-based, subject to Accenture achieving certain performance goals.
- The separation agreement includes provisions for forfeiture of payments and vested equity if Mr. Campbell breaches restrictive covenants.
03—Questions
Frequently Asked Questions
Why did Kevin Campbell resign from Accenture?
Kevin Campbell resigned from Accenture for personal reasons, effective immediately on March 1, 2012.
What compensation is Kevin Campbell receiving as part of his separation agreement?
Mr. Campbell is set to receive $3 million in cash payments over a 12-month period. Additionally, he will receive the vesting of unvested equity, comprising time-vested restricted share units (approximately 52,701 shares plus dividend shares) and up to 90,510 performance-based restricted share units (plus dividend shares), subject to certain performance conditions.
What restrictions are in place for Kevin Campbell following his departure?
As part of the separation agreement, Mr. Campbell has agreed not to compete with Accenture or solicit its clients or employees for a period of 12 months following his separation.
What happens if Kevin Campbell violates the terms of the separation agreement?
If Mr. Campbell breaches his restrictive covenants (non-compete and non-solicitation), he will forfeit his right to receive any further separation payments, must repay any payments already received, and will forfeit any restricted share units that were vested as part of the separation agreement.
04—Continue