What specific benefits will executives receive under this severance plan?

Upon a qualifying termination, executives will receive a lump sum payment equivalent to one and a half times their annual base salary (or two times for the CEO). They may also receive a pro-rated bonus, up to 12 months of continued healthcare benefits at no cost, and up to 12 months of outplacement services.

Are there any conditions or exclusions for receiving severance benefits?

Yes, severance benefits are contingent on the termination being involuntary and not for 'Cause,' 'Disability,' or death, as defined in the plan. Furthermore, it excludes terminations that qualify under the Company's Change in Control Severance Plan. Executives must also execute a release and covenant agreement, which includes confidentiality, non-disparagement, non-competition, and non-solicitation clauses for two years post-termination.

Can the lump sum severance payment be reduced?

Yes, the value of the lump sum severance payment can be reduced by the value of any restricted stock unit awards that vest upon termination, specifically those granted in connection with an executive's appointment to the legacy United Technologies Corporation Executive Leadership Group. It can also be reduced by any other severance benefits the executive is otherwise entitled to receive.

CARR 8-K: Leadership Changes

Q: What is the primary purpose of the newly adopted Senior Executive Severance Plan?

The primary purpose of the Senior Executive Severance Plan is to provide financial and other benefits to Carrier Global's senior executives, including named executive officers, in the event of an involuntary termination of employment under specific, non-fault conditions. This aims to offer security and align executive incentives.

Summary

Carrier Global Corporation (CARR) announced the adoption of a new Senior Executive Severance Plan on April 19, 2021, effective from April 18, 2021. This plan is designed to provide financial and other benefits to its senior executives, including named executive officers, in the event of an involuntary termination of employment under specific circumstances. The plan aims to offer a safety net and align executive interests during potential transitional periods.

Key Highlights

1Carrier Global has established a Senior Executive Severance Plan for its executive leadership team.
2The plan provides severance benefits upon involuntary termination for reasons other than Cause, Disability, or death, and not as a qualifying termination under the Change in Control Severance Plan.
3Eligible executives will receive a lump sum payment equal to 1.5 times their annual base salary (2 times for the CEO).
4A pro-rated bonus for the year of termination may be provided if the termination occurs in the last fiscal quarter of the performance period.
5Continued healthcare benefits for the executive and dependents for up to 12 months at no cost are included.
6The plan also offers outplacement services for up to 12 months.
7Severance payments may be reduced by the value of certain restricted stock units vesting upon termination or other applicable severance benefits.

CARRIER GLOBAL Corp 8-K Report, Executive Changes (Apr 22, 2021)

Summary

Key Highlights

Frequently Asked Questions