Summary
Air Products & Chemicals, Inc. (APD) filed an 8-K on November 14, 2017, to disclose an amended and restated employment agreement with its Chairman, President, and CEO, Seifollah Ghasemi. The new agreement extends Mr. Ghasemi's term until September 30, 2022, and formalizes certain aspects of his compensation, including a minimum target annual cash bonus opportunity of 150% of his base salary and continued access to company-provided automobiles and drivers for security purposes. The agreement also clarifies the treatment of Mr. Ghasemi's equity compensation under various termination scenarios, generally ensuring continued vesting and exercisability of options and performance-based awards under specific conditions, aiming to provide continuity and recognize long-term commitment. This filing aims to provide transparency regarding executive compensation and the company's leadership continuity.
Key Highlights
- 1Amended and restated employment agreement entered into with CEO Seifollah Ghasemi, effective November 14, 2017.
- 2New employment agreement extends Mr. Ghasemi's tenure as Chairman, President, and CEO through September 30, 2022.
- 3Formalizes minimum target annual cash bonus opportunity at 150% of base salary.
- 4Confirms ongoing access to company-provided automobiles and drivers for security and personal travel.
- 5Clarifies treatment of equity awards (stock options, restricted shares, performance awards) under various termination scenarios (resignation for Good Reason, termination for Cause, death, disability, expiration of term).
- 6Provisions are in place to ensure continued vesting and exercisability of equity awards, with performance awards potentially prorated based on tenure.
- 7Severance payments are subject to prorating if termination occurs after September 30, 2020, and will not be provided after September 30, 2022.