Summary
Cardinal Health, Inc. (CAH) filed an 8-K on May 29, 2006, to report the termination of a material definitive agreement concerning the departure of Ronald Labrum, its Chairman and Chief Executive Officer of Healthcare Supply Chain Services. Mr. Labrum's employment will conclude on July 31, 2006, with his final departure from the company occurring on September 22, 2006. This separation is classified as "without cause" under his existing employment agreement. As a result of the "without cause" termination, Mr. Labrum is entitled to a severance package. This includes a payout equivalent to two times his combined annual base salary and target bonus, to be distributed over 24 months post-termination. Additionally, he will receive vested equity compensation awards and other standard employee benefits up to his termination date. The filing also includes the letter agreement detailing these terms as an exhibit.
Key Highlights
- 1Ronald Labrum, Chairman and CEO of Healthcare Supply Chain Services, is departing from Cardinal Health.
- 2Mr. Labrum's employment termination date is July 31, 2006, with his final separation from the company on September 22, 2006.
- 3The termination is classified as "without cause" under his employment agreement.
- 4Mr. Labrum will receive severance equivalent to two times his annual base salary plus target bonus.
- 5The severance payment will be made over a 24-month period following his termination.
- 6He is also entitled to vested equity compensation awards and other benefits.
- 7The details of the separation are outlined in a letter agreement filed as an exhibit.