8-KLeadership ChangesExhibits & Filings

Aon plc 8-K Report, Executive Changes (Oct 12, 2007)

Filed October 12, 2007For Securities:AON

Summary

This 8-K filing from Aon Corporation (AON) on October 12, 2007, details a Transition Agreement with its departing Chief Financial Officer, David P. Bolger. The agreement outlines Mr. Bolger's continued role as CFO through at least June 30, 2008, and as a senior-level employee until December 31, 2009, to ensure a smooth handover of duties and provide transition services. Key financial aspects include continued salary, benefits, and participation in retirement plans during this period. The agreement also specifies performance-based bonuses for 2007 and potentially 2008, with a defined target for the 2008 bonus. Notably, the agreement includes provisions for accelerated vesting of equity awards and lump-sum payments of compensation in the event of a Change in Control.

Key Highlights

  • 1Aon Corporation has entered into a Transition Agreement with CFO David P. Bolger, effective October 12, 2007.
  • 2Mr. Bolger will continue as CFO until at least June 30, 2008, and remain a senior employee until December 31, 2009, to facilitate transition.
  • 3The agreement ensures Mr. Bolger continues to receive his base salary, welfare benefits, and participation in retirement plans during the transition period.
  • 4A performance-based bonus of at least $1,000,000 is guaranteed for 2007, with a potential bonus for 2008 based on performance and months in the CFO role.
  • 5The agreement includes provisions for accelerated vesting of equity awards and immediate payment of compensation in the event of a Change in Control.
  • 6Mr. Bolger's prior Severance Agreement is terminated, except for existing tax gross-up obligations.
  • 7The agreement is contingent on Mr. Bolger executing a release of claims after July 1, 2008.

Frequently Asked Questions

This 8-K filing announces the details of a Transition Agreement between Aon Corporation and its Chief Financial Officer, David P. Bolger, following his upcoming departure from the CFO role.

During the specified 'Initial Period' (as CFO) and 'Continuation Period' (as senior employee), Mr. Bolger will continue to receive his base salary, remain eligible for company welfare benefits, and participate in qualified and non-qualified retirement plans. He is also eligible for performance-based bonuses for 2007 and potentially 2008.

In the event of a 'Change in Control' during the Continuation Period, any outstanding equity-based awards that would have vested on December 31, 2009, will immediately become fully vested. If a Change in Control occurs during the Initial Period, all outstanding equity-based awards will become fully vested.

Yes, the full transition compensation and benefits are subject to Mr. Bolger executing and not revoking a release of claims shortly after July 1, 2008. The agreement also outlines specific conditions under which the company's obligations would terminate, such as a breach by Mr. Bolger.