Summary
Casey's General Stores, Inc. (CASY) filed an 8-K on March 21, 2007, to disclose an Employment Agreement entered into with its President and Chief Executive Officer, Robert J. Myers. The agreement solidifies Mr. Myers' leadership role for a five-year term, extending through June 21, 2011. This filing is important for investors as it provides clarity on executive compensation and retention, outlining salary, benefits, life insurance coverage, and a defined retirement benefit structure tied to continued employment throughout the term. The agreement also details provisions for termination, both with and without cause, as well as in the event of a change of control. Key aspects include a significant life insurance policy and a retirement benefit that equals half of his final three years' average base salary, payable for ten years post-employment, contingent on completing the employment term. The non-compete clause for ten years post-termination is also a notable aspect aimed at protecting the company's interests.
Key Highlights
- 1Robert J. Myers, President and CEO, has a new five-year Employment Agreement extending to June 21, 2011.
- 2Mr. Myers will receive a base salary of $500,000 annually, subject to Compensation Committee review.
- 3The company will provide a $1,000,000, 10-year term life insurance policy for Mr. Myers, with ownership to be transferred upon contract expiration.
- 4A retirement benefit of 50% of his average base salary for the last three years of employment is stipulated, payable for ten years, provided he completes the full term.
- 5Termination clauses are defined, including severance payments for termination without cause (12 months' base salary) and specific conditions for termination with cause.
- 6In the event of a change of control, Mr. Myers is entitled to benefits under his existing change of control agreement, plus the insurance and retirement benefits from this new agreement.
- 7Mr. Myers is subject to a ten-year post-termination non-compete restriction.