Summary
Autodesk, Inc. (ADSK) filed an 8-K on March 28, 2021, detailing an amendment and restatement of its Severance Plan, effective March 25, 2021. The key change is the introduction of severance benefits for eligible employees who voluntarily retire under specific criteria. Previously, the plan only covered involuntary terminations. This revised plan aims to incentivize voluntary departures for retirement while retaining essential severance protections for involuntary terminations without cause or for good reason. The amended plan defines 'Qualified Retirement' based on age and years of service thresholds (combined age + service >= 75, or age >= 55 with >= 10 years of service). Eligible employees retiring voluntarily will receive a lump-sum cash payment (1.5x base pay and target bonus, plus pro-rata bonus), accelerated vesting of time-based RSUs by 12 months, potential vesting of performance-based RSUs, and a 18-month COBRA subsidy with a potential tax gross-up. This amendment affects a select group of management and highly compensated employees, including executive officers.
Key Highlights
- 1Autodesk amended and restated its Severance Plan, effective March 25, 2021.
- 2The amended plan now includes severance benefits for voluntary departures due to 'Qualified Retirement'.
- 3Qualified Retirement is defined by specific age and service criteria (e.g., combined age + service >= 75 or age >= 55 with >= 10 years of service).
- 4Severance for voluntary retirement includes a lump-sum cash payment, accelerated vesting of time-based RSUs (12 months), and potential vesting of performance-based RSUs.
- 5A taxable lump sum for 18 months of COBRA premiums, including a potential tax gross-up, is also provided for qualifying retirees.
- 6Severance benefits for involuntary termination (without cause or for good reason) remain unchanged from the prior plan.
- 7The plan is intended to qualify as a 'Top Hat' plan for a select group of management and highly compensated employees.