8-KLeadership Changes

BROWN & BROWN, INC. 8-K Report, Executive Changes (Feb 27, 2017)

Filed February 27, 2017For Securities:BRO

Summary

Brown & Brown, Inc. (BRO) announced on February 27, 2017, the adoption of its 2017 annual cash incentive plan for executive officers, including named executive officers, as approved by the Compensation Committee of the Board of Directors. This plan outlines the structure and performance metrics for potential cash bonuses for the upcoming fiscal year. The incentive is designed to align executive compensation with key company performance indicators, encouraging growth and profitability. The incentive program is comprised of three components, each weighted equally at 40%, 40%, and 20% respectively. These components are tied to achieving specific organic revenue growth targets, improving the Company's EBITDAC margin, and meeting personal objectives set by the Compensation Committee. The structure allows for payouts ranging from 0% to 200% of the target incentive amount, providing significant upside potential for executives who exceed performance expectations, while also setting a floor to ensure accountability.

Key Highlights

  • 1Brown & Brown, Inc. has established its 2017 annual cash incentive plan for executive officers.
  • 2The incentive plan is contingent on the achievement of specified performance objectives for the 2017 fiscal year.
  • 3The incentive is comprised of three components: organic revenue growth (40%), EBITDAC margin performance (40%), and personal objectives (20%).
  • 4Organic revenue growth targets will be measured company-wide for corporate officers and division-specific for those with divisional responsibilities.
  • 5EBITDAC margin is defined as income before taxes less specific adjustments, divided by total revenues.
  • 6Executive officers can earn between 0% and 200% of their target cash incentive amount.
  • 7Target incentive amounts for key named executive officers for 2017 have been disclosed.

Frequently Asked Questions

This 8-K filing announces the Brown & Brown, Inc. Compensation Committee's approval of the 2017 annual cash incentive plan for its executive officers. The plan details how executive bonuses will be determined based on performance metrics.

The payout is based on three equally weighted (40%, 40%, 20%) components: specified organic revenue growth targets, the Company's EBITDAC margin performance, and the achievement of personal objectives set by the Compensation Committee.

EBITDAC margin is defined in the filing as the company's income before income taxes, adjusted by excluding amortization, depreciation, interest, and changes in estimated acquisition earn-out payables, all divided by total revenues.

Executive officers are eligible to receive a payout ranging from a minimum of 0% to a maximum of 200% of their target cash incentive amount for 2017, depending on their performance against the established metrics.