8-KLeadership ChangesExhibits & Filings

AUTOZONE INC 8-K Report, Executive Changes (Sep 30, 2009)

Filed September 30, 2009For Securities:AZO

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.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce an amendment to the employment agreement of Robert D. Olsen, a key executive, and detail changes to his role, compensation, and severance benefits.

Mr. Olsen will serve as Corporate Development Officer, responsible for Mexico, ALLDATA, and other strategic initiatives, working an average of 32 hours per week.

If AutoZone terminates Mr. Olsen's employment without cause, the lump-sum payment for COBRA premiums will now be equal to one times the total annual COBRA premium costs, reduced from the previous two times the cost.

No, Mr. Olsen is not leaving AutoZone. He is transitioning to a new role as Corporate Development Officer with specific responsibilities and a modified employment agreement.