Summary
Brown & Brown, Inc. (BRO) filed an 8-K on May 19, 2014, to disclose the execution of new employment agreements with several key executive officers, including J. Powell Brown, Linda S. Downs, Charles H. Lydecker, and Anthony T. Strianese, effective May 13, 2014. These new agreements were put in place to standardize terms and conditions that were previously varied due to differing effective dates of prior agreements. The primary focus of these new agreements is the inclusion of updated restrictive covenants. These covenants aim to protect the company by prohibiting the named executives from soliciting or diverting business and employees for a two-year period post-employment, and also prohibit the disclosure of confidential information. While specific compensation details are not outlined in the 8-K, the agreements stipulate that compensation will be determined and agreed upon by the Company and the executives from time to time.
Key Highlights
- 1New employment agreements were executed on May 13, 2014, for key executives including J. Powell Brown, Linda S. Downs, Charles H. Lydecker, and Anthony T. Strianese.
- 2The primary purpose of the new agreements was to standardize terms and ensure consistent effective dates, replacing older agreements with varied terms.
- 3Agreements include restrictive covenants aimed at protecting the company.
- 4Restrictive covenants prohibit solicitation or diversion of business and employees for two years following separation from employment (voluntary or involuntary).
- 5Restrictive covenants also prohibit the disclosure of confidential information.
- 6Compensation for these executives will be determined and agreed upon by the Company and the executives periodically.
- 7The template of these employment agreements will be filed as an exhibit to the Company's Form 10-Q for the quarter ending June 30, 2014.