8-KLeadership ChangesExhibits & Filings

Aon plc 8-K Report, Executive Changes (Nov 9, 2010)

Filed November 9, 2010For Securities:AON

Summary

Aon plc filed an 8-K on November 9, 2010, to report a significant executive transition. The filing details a Transition Agreement entered into with Andrew M. Appel, the Chief Operating Officer, which outlines his departure from the company. Mr. Appel resigned from his COO role and other executive positions effective November 5, 2010, and his employment will officially terminate without cause on December 31, 2010. This agreement provides for Mr. Appel's continued receipt of his base salary of $950,000 and participation in company benefits during a transition period. Post-employment, he will receive a lump sum payment of $4,263,000, extended office and secretarial support, COBRA premium reimbursement, legal fee reimbursement, and outplacement services. The agreement also includes standard confidentiality, non-competition, and non-solicitation clauses for a period of two years following his termination date.

Key Highlights

  • 1Chief Operating Officer Andrew M. Appel is transitioning out of his role at Aon.
  • 2Mr. Appel's employment will officially terminate without cause on December 31, 2010.
  • 3A Transition Agreement has been executed between Aon and Mr. Appel.
  • 4Mr. Appel will receive his base salary of $950,000 and continue to participate in company benefits until his termination date.
  • 5A lump sum payment of $4,263,000 is part of the separation package.
  • 6The agreement includes provisions for office support, health care continuation, legal fee reimbursement, and outplacement services.
  • 7Restrictive covenants, including non-competition and non-solicitation clauses, are in effect for two years post-termination.

Frequently Asked Questions

The 8-K filing indicates that Aon Corporation and Andrew M. Appel entered into a Transition Agreement. His departure is framed as a resignation from his COO position and officer roles as of November 5, 2010, with his employment to be terminated without cause by the company on December 31, 2010.

Mr. Appel will continue to receive his base salary of $950,000 and participate in retirement and health care plans until his termination date. Post-termination, he is set to receive a lump sum payment of $4,263,000, office and secretarial assistance until September 30, 2011 (or until re-employment), COBRA premium reimbursement through September 30, 2011, reimbursement for up to $17,500 in legal fees related to the agreement, and outplacement services for the 2011 calendar year.

Yes, the Transition Agreement includes confidentiality provisions and restrictive covenants. Specifically, Mr. Appel is subject to non-competition and non-solicitation provisions for a period of two years, commencing on January 1, 2011.

Yes, as part of the agreement, Mr. Appel has waived his entitlement to any annual incentive payment covering performance in the calendar year 2010.