Summary
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 million 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.
Key Highlights
- 1Immediate resignation of Kevin Campbell, Group Chief Executive of the Technology growth platform, effective March 1, 2012.
- 2Separation agreement includes a 12-month non-compete and non-solicitation clause for Mr. Campbell.
- 3Mr. Campbell will receive $3 million in cash payments spread over 12 months.
- 4Unvested equity, including restricted share units (RSUs) and dividend shares, will vest as part of the agreement.
- 5A portion of the RSUs is performance-based, subject to Accenture achieving certain performance goals.
- 6The separation agreement includes provisions for forfeiture of payments and vested equity if Mr. Campbell breaches restrictive covenants.