8-KMaterial AgreementsExhibits & Filings

Aon plc 8-K Report, Material Agreement (Jul 20, 2006)

Filed July 20, 2006For Securities:AON

Summary

This 8-K filing by Aon plc, filed on July 19, 2006, reports on a material definitive agreement concerning the employment of Dennis L. Mahoney, Chairman and CEO of Aon Limited. The company, through its subsidiaries Aon Group, Inc. and Aon Limited, entered into a letter agreement with Mr. Mahoney to amend his existing employment agreement dated November 30, 1998. The key amendments extend Mr. Mahoney's employment term significantly to September 20, 2015. The agreement also modifies termination notice periods and certain post-termination compensation obligations. Additionally, it increases and restructures the mortgage subsidy provided to Mr. Mahoney, with payments now going directly to the lender and terminating on his 60th birthday or agreement termination, whichever occurs first. These changes indicate a long-term commitment to Mr. Mahoney's leadership and adjust his compensation and benefits structure.

Key Highlights

  • 1Aon Corporation subsidiaries entered into a letter agreement with Dennis L. Mahoney, Chairman and CEO of Aon Limited.
  • 2The agreement amends Mr. Mahoney's existing employment contract dated November 30, 1998.
  • 3The term of Mr. Mahoney's employment agreement has been extended to September 20, 2015.
  • 4Modifications include changes to termination notice periods and post-termination compensation obligations.
  • 5The mortgage subsidy for Mr. Mahoney has been increased and its payment terms revised.
  • 6The mortgage subsidy will be paid directly to the lender.
  • 7The mortgage subsidy will cease on Mr. Mahoney's 60th birthday or the termination of his employment agreement, whichever happens sooner.

Frequently Asked Questions

The main purpose of this 8-K filing is to report a material definitive agreement, specifically an amendment to the employment contract of Dennis L. Mahoney, Chairman and CEO of Aon Limited, extending his tenure and modifying compensation terms.

Mr. Mahoney's employment agreement has been extended to September 20, 2015.

Yes, the agreement modifies certain post-termination compensation obligations and increases the amount of the mortgage subsidy. The mortgage subsidy will now be paid directly to the lender and will terminate earlier, either on Mr. Mahoney's 60th birthday or upon termination of his employment agreement.

The extension of Mr. Mahoney's contract signals a commitment to his leadership for the long term, which can provide stability. The changes to his compensation and benefits are part of the negotiation for this extended commitment. Investors may view this as a positive sign of continuity in leadership, depending on their assessment of Mr. Mahoney's performance and the terms of the agreement.