8-KLeadership ChangesExhibits & Filings

Aon plc 8-K Report, Executive Changes (Feb 14, 2012)

Filed February 14, 2012For Securities:AON

Summary

This Form 8-K filing by Aon Corporation reports on the departure of a named executive officer, Baljit Dail, Co-Chief Executive Officer of Aon Hewitt. Mr. Dail's employment will officially cease on March 31, 2012, with his resignation from officer and committee roles effective February 13, 2012. The company states his departure is to focus on health and work-life balance. Aon Hewitt will continue under the leadership of Kristi Savacool. Key aspects for investors include the terms of Mr. Dail's separation agreement. This includes a $1,000,000 lump sum payment, continued eligibility for certain stock award vesting under 'terminations without cause' provisions, and executive physical and COBRA benefits through the end of 2012. Notably, Mr. Dail has waived entitlement to certain other stock awards and any 2011 or 2012 annual incentive payments. The agreement also includes standard confidentiality and restrictive covenants, such as non-competition and non-solicitation clauses for two years post-separation.

Key Highlights

  • 1Baljit Dail, Co-CEO of Aon Hewitt, is departing the company effective March 31, 2012.
  • 2The reason cited for departure is to focus on health and work-life balance.
  • 3Kristi Savacool will continue as the sole Chief Executive Officer of Aon Hewitt.
  • 4Mr. Dail will receive a $1,000,000 lump sum payment.
  • 5He remains eligible for vesting of certain stock awards under 'termination without cause' provisions.
  • 6Mr. Dail has waived entitlement to certain other stock awards and 2011/2012 annual incentive payments.
  • 7The separation agreement includes a two-year non-competition and non-solicitation clause.

Frequently Asked Questions

The primary financial impact reported is a $1,000,000 lump sum payment to Mr. Dail, along with continued eligibility for certain stock awards and benefits (executive physical, COBRA) through the end of 2012. Mr. Dail has waived other potential compensation, mitigating further direct financial outflow.

The filing indicates that Aon Hewitt will continue under the existing leadership of Kristi Savacool, the current Chief Executive Officer. This suggests a smooth transition and no immediate concerns about leadership continuity for Aon Hewitt.

Mr. Dail is subject to non-competition and non-solicitation provisions for a period of two years, beginning from his separation date of March 31, 2012. These clauses aim to prevent him from engaging in competitive activities or soliciting Aon's clients and employees.

Yes, Mr. Dail received a $1,000,000 lump sum payment. Additionally, he is eligible for vesting of certain stock awards as if he were terminated without cause, and he will continue to receive executive physical program benefits and COBRA continuation coverage through the end of 2012, subject to a release of claims.