8-KLeadership ChangesExhibits & Filings

Aon plc 8-K Report, Executive Changes (Jul 14, 2015)

Filed July 14, 2015For Securities:AON

Summary

Aon plc filed an 8-K on July 13, 2015, to report on an Amended and Restated Employment Agreement with Stephen P. McGill, Chairman and CEO of Risk Solutions and Group President. This agreement, effective July 8, 2015, extends Mr. McGill's employment term through December 1, 2020, underscoring the company's commitment to retaining key leadership within its Risk Solutions segment. The agreement maintains Mr. McGill's base salary of $1,100,000 and his eligibility for a target bonus of at least 175% of base salary, capped at $10 million. A significant element for investors is the expected additional long-term incentive award of $6 million under the Leadership Performance Program (LPP) for the 2016-2018 performance period, reflecting his continued contributions and extended tenure. The agreement also retains existing benefit structures and includes standard restrictive covenants such as twelve-month non-competition and non-solicitation clauses.

Key Highlights

  • 1Stephen P. McGill's employment term as Chairman and CEO of Risk Solutions and Group President has been extended to December 1, 2020.
  • 2Mr. McGill's base salary remains $1,100,000 annually.
  • 3He remains eligible for a target bonus of not less than 175% of his base salary, with a cap of $10 million.
  • 4An additional long-term incentive award of $6 million under the LPP is anticipated for the 2016-2018 performance period, subject to Board approval.
  • 5This long-term incentive award will have the same performance criteria and weightings as other LPP recipients for the same period.
  • 6The agreement includes standard twelve-month non-competition and non-solicitation clauses.
  • 7Existing employee benefit plans and termination provisions remain largely unchanged.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce the execution of an Amended and Restated Employment Agreement with Stephen P. McGill, extending his term of employment and outlining key aspects of his compensation and contractual obligations.

The agreement does not change Mr. McGill's base salary, which remains $1,100,000. He is still eligible for a target bonus of at least 175% of his base salary, capped at $10 million. However, he is expected to receive an additional $6 million long-term incentive award under the Leadership Performance Program for the 2016-2018 performance period, reflecting his extended commitment.

Mr. McGill's employment term is extended to December 1, 2020. The agreement includes twelve-month non-competition and non-solicitation provisions applicable regardless of the termination reason, subject to customary exceptions, and standard confidentiality and intellectual property clauses.

No, the Amended and Restated Agreement indicates that Mr. McGill's eligibility for employee benefit plans remains unchanged and that the termination provisions, including severance rights in certain instances, are substantially similar to those in his prior agreement.