Summary
Cardinal Health Inc. (CAH) filed an 8-K on August 5, 2015, primarily detailing an amendment to the employment agreement for Chairman and CEO George S. Barrett. This amendment extends Mr. Barrett's tenure through at least the annual meeting following June 30, 2018, or December 31, 2018, ensuring leadership stability. Key changes include maintaining his base salary of $1,320,000, increasing his target bonus to at least 150% of base salary, and setting a new target value for long-term incentive awards at $9,500,000. Additionally, the company entered into a new three-year aircraft time-sharing agreement with Mr. Barrett on similar terms to the previous one. In a separate development, long-serving director Richard C. Notebaert announced he will not seek re-election at the 2015 annual meeting, concluding his tenure that began in 1999. His departure is not due to any disagreements with the company.
Key Highlights
- 1CEO George S. Barrett's employment agreement extended to at least mid-2018 or end-of-2018, ensuring leadership continuity.
- 2Barrett's base salary remains at $1,320,000.
- 3Target bonus for CEO Barrett increased to a minimum of 150% of base salary.
- 4New target value for CEO Barrett's annual long-term incentive awards set at $9,500,000.
- 5A new three-year aircraft time-sharing agreement was established with CEO Barrett.
- 6Director Richard C. Notebaert will not stand for re-election at the 2015 annual meeting.
- 7Notebaert's departure as a director is not due to any disagreements with the company.