8-KMaterial AgreementsRegulation FDExhibits & Filings

CARDINAL HEALTH INC 8-K Report, Material Agreement (Jul 5, 2006)

Filed July 5, 2006For Securities:CAH

Summary

Cardinal Health, Inc. (CAH) filed an 8-K on July 5, 2006, reporting significant changes to executive roles and compensation, as well as a material definitive agreement. Specifically, David L. Schlotterbeck has been appointed Chief Executive Officer of Pharmaceutical and Medical Products, expanding his leadership to encompass additional key segments of the company. This expanded role comes with a substantial increase in his annual base salary, reflecting the added responsibilities. In addition to leadership changes, the filing also details the authorization for President and CEO R. Kerry Clark to use corporate aircraft for personal travel, with accompanying tax reimbursements. These executive-level adjustments and benefits are important for investors to understand regarding management structure and incentives. The report also indicates the furnishing of a press release from July 5, 2006, as an exhibit.

Key Highlights

  • 1David L. Schlotterbeck appointed Chief Executive Officer of Pharmaceutical and Medical Products, expanding his leadership scope.
  • 2Mr. Schlotterbeck's annual base salary increased from $580,000 to $725,000 in connection with his expanded role.
  • 3Mr. Schlotterbeck's target annual bonus remains at 100% of his new annual base salary.
  • 4R. Kerry Clark, President and CEO, authorized to use corporate aircraft for personal travel.
  • 5The company will provide tax reimbursement to Mr. Clark for income attributed to his personal use of corporate aircraft.
  • 6The filing is linked to a press release issued by the company on July 5, 2006.

Frequently Asked Questions

This 8-K filing primarily serves to report on material definitive agreements and regulatory disclosures, specifically announcing changes in executive leadership roles and compensation for David L. Schlotterbeck, and outlining personal use of corporate aircraft benefits for CEO R. Kerry Clark.

The primary financial implication for investors is the increase in David L. Schlotterbeck's annual base salary from $580,000 to $725,000 due to his expanded executive responsibilities. His bonus target remains a significant incentive at 100% of this new base salary.

This disclosure is made under Regulation FD (Fair Disclosure) and as part of reporting material definitive agreements. It informs investors about benefits provided to top executives and the associated costs or tax implications for the company and the executive.

The press release, issued on July 5, 2006, and furnished as an exhibit, likely contains further details or context regarding the executive changes and decisions reported in the 8-K. Investors are advised to review this press release for a more complete understanding.