8-KLeadership ChangesExhibits & Filings

Aon plc 8-K Report, Executive Changes (Oct 3, 2007)

Filed October 3, 2007For Securities:AON

Summary

Aon plc filed an 8-K on October 3, 2007, to announce significant changes in its senior finance leadership. The report details the appointment of Christa Davies as Executive Vice President, Global Finance, effective November 12, 2007, and her subsequent appointment as Chief Financial Officer (CFO) effective March 1, 2008. Ms. Davies brings extensive financial experience from Microsoft, where she most recently served as CFO of its Platform and Services Division. This appointment marks a key transition for Aon's financial operations as the outgoing CFO, David P. Bolger, prepares to leave the company. The filing also outlines the comprehensive employment agreement with Ms. Davies, including her initial base salary, bonus potential, stock-based compensation, and severance provisions. Investors should note the long-term incentive structure and the protections afforded to Ms. Davies in various termination scenarios, which are designed to align her interests with the company and ensure a stable transition in financial leadership.

Key Highlights

  • 1Appointment of Christa Davies as Executive Vice President, Global Finance, effective November 12, 2007.
  • 2Christa Davies to assume the role of Chief Financial Officer (CFO) effective March 1, 2008.
  • 3Ms. Davies brings significant financial expertise from her previous role as CFO of a major division at Microsoft Corporation.
  • 4The company has entered into a five-year employment agreement with Ms. Davies.
  • 5Ms. Davies' compensation package includes a base salary of $750,000, a target annual bonus of 150% of base salary, and a guaranteed minimum bonus of $1,000,000 for 2008.
  • 6Significant equity awards include 85,000 restricted stock units and options to purchase 100,000 shares, with staggered vesting periods.
  • 7The employment agreement includes provisions for severance pay and benefits in various termination scenarios, including change-in-control events.

Frequently Asked Questions

Christa Davies is the newly appointed Executive Vice President, Global Finance, and future Chief Financial Officer (CFO) of Aon. She has a strong financial background, most recently serving as the CFO of the Platform and Services Division at Microsoft Corporation. Her experience includes financial management, strategy, acquisitions, and investor relations.

Ms. Davies will begin her role as Executive Vice President, Global Finance, on November 12, 2007, and will officially assume the responsibilities of Chief Financial Officer (CFO) on March 1, 2008. David P. Bolger will continue as CFO until that date.

Ms. Davies' compensation includes an initial base salary of $750,000 per year, eligibility for an annual incentive bonus targeted at 150% of her base salary, and a guaranteed minimum bonus of $1,000,000 for 2008. She will also receive significant stock-based compensation, including restricted stock units and stock options, as well as a $1,000,000 hiring bonus.

The employment agreement includes provisions for severance pay and benefits under various scenarios, such as termination by the company for reasons other than cause, death, or disability. These provisions may include continued salary payments, full vesting of equity awards, and other benefits, particularly in cases of termination without cause or termination with 'good reason' by Ms. Davies.