Summary
This Form 8-K filing by AutoZone, Inc. (AZO) on January 22, 2007, primarily reports on the departure of an officer, Bradley W. Bacon. Mr. Bacon resigned as an officer on January 16, 2007, and his employment will conclude on January 30, 2007. The company has entered into an agreement that includes continued base salary payments for 78 weeks, a pro-rata bonus for fiscal year 2007, and potential COBRA coverage cost assistance for the same period. The agreement also contains standard restrictive covenants, preventing Mr. Bacon from competing with AutoZone or soliciting its employees for the 78-week duration. Investors should note this is an executive transition event and does not appear to involve any immediate financial performance changes for the company, but rather details the terms of separation for a departing officer.
Key Highlights
- 1Reported resignation of officer Bradley W. Bacon, effective January 16, 2007.
- 2Employment termination date for Mr. Bacon is scheduled for January 30, 2007.
- 3Separation agreement includes 78 weeks of continued base salary for Mr. Bacon.
- 4Mr. Bacon is eligible to receive a pro-rata bonus for the 2007 fiscal year.
- 5AutoZone will provide financial assistance for COBRA health insurance premiums for 78 weeks.
- 6Agreement includes a non-compete clause preventing Mr. Bacon from competing with AutoZone for 78 weeks.
- 7Non-solicitation clause prevents Mr. Bacon from hiring AutoZone employees during the 78-week period.