Summary
This Form 8-K filing by AutoZone Inc. (AZO) on September 30, 2009, primarily details an amendment to the employment agreement of Robert D. Olsen, Executive Vice President. Effective November 1, 2009, Mr. Olsen will transition to the role of Corporate Development Officer, focusing on Mexico, ALLDATA, and strategic initiatives, working an average of 32 hours per week. Key changes to his employment terms include a base salary of $365,000, reporting directly to the CEO. The amendment also modifies severance benefits in the event of termination without cause, reducing the lump-sum COBRA premium payment benefit from two times to one times the aggregate annual cost for Mr. Olsen and his dependents. The non-compete agreement has also been extended to one year. Investors should note this is a change in role and compensation structure for a key executive, with specific adjustments to severance provisions.
Key Highlights
- 1Amendment to Robert D. Olsen's employment agreement, effective November 1, 2009.
- 2Mr. Olsen transitions from Executive Vice President to Corporate Development Officer.
- 3New role involves focus on Mexico, ALLDATA, and strategic initiatives, with a 32-hour weekly commitment.
- 4Base salary for the new role set at $365,000.
- 5Severance benefit modification: lump-sum COBRA payment reduced from two times to one time annual cost in case of termination without cause.
- 6Non-compete agreement extended to one year.
- 7Mr. Olsen will continue to report to Bill Rhodes, Chairman, President, and Chief Executive Officer.