8-KLeadership Changes

CARRIER GLOBAL Corp 8-K Report, Executive Changes (Jun 12, 2023)

Filed June 12, 2023For Securities:CARR

Summary

Carrier Global Corporation (CARR) filed an 8-K on June 12, 2023, to disclose executive compensation arrangements related to the planned divestiture of its Fire and Security businesses. The filing details a performance incentive and retention bonus for Jurgen Timperman, President of the Fire and Security Segment, designed to align his compensation with the successful execution of the business exit and achievement of financial targets. Specifically, Mr. Timperman has the opportunity to earn a cash bonus based on exceeding Adjusted Operating Profit and Free Cash Flow targets for the Fire and Security segment, alongside a separate bonus upon the completion of the divestiture, contingent on his continued employment. The total maximum bonus opportunity for both components over a multi-year period is capped at $2.5 million. This arrangement reflects the Compensation Committee's recognition of the complex dual mandate Mr. Timperman faces: driving performance during the divestiture process while also managing the sale itself.

Key Highlights

  • 1Disclosure of compensatory arrangements for Jurgen Timperman, President of the Fire and Security Segment, related to the planned divestiture.
  • 2Timperman is eligible for a performance bonus tied to exceeding financial targets (Adjusted Operating Profit and Free Cash Flow) for the Fire and Security businesses.
  • 3A separate "Deal Bonus" is available to Timperman upon successful completion of the Fire and Security business divestiture, subject to continued employment.
  • 4The total maximum bonus opportunity for Timperman, combining performance and deal bonuses, is $2.5 million over a multi-year period.
  • 5The Compensation Committee approved these incentives to address the additional challenges and responsibilities associated with the divestiture efforts and exceeding financial plan targets.
  • 6The financial plan targets are described as challenging yet achievable.
  • 7This filing is relevant to investors monitoring the strategic execution of Carrier's plan to exit the Fire and Security businesses.

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