Summary
This Form 8-K filing from Caterpillar Inc. (CAT) on March 2, 2010, primarily concerns a significant equity award granted to its Chairman and Chief Executive Officer, James W. Owens. On March 1, 2010, Mr. Owens received 300,000 restricted stock units (RSUs) under the Company's 2006 Long-Term Incentive Plan. This award is a key component of executive compensation, designed to align leadership interests with shareholder value over the medium term. Investors should note that the RSUs are subject to specific vesting and transfer restrictions. The award is scheduled to vest on November 1, 2010, contingent upon Mr. Owens' continued employment through October 31, 2010. Upon vesting, shares will be issued, subject to mandatory tax withholdings and a three-year restriction on transferability, which can be lifted earlier in the event of a Change in Control or death. Termination of employment for reasons other than disability or death prior to the vesting date will result in forfeiture of the award.
Key Highlights
- 1Caterpillar Inc. granted 300,000 restricted stock units (RSUs) to CEO James W. Owens on March 1, 2010.
- 2The RSU award is part of the Company's 2006 Long-Term Incentive Plan.
- 3The RSUs are scheduled to vest on November 1, 2010, provided Mr. Owens remains employed through October 31, 2010.
- 4Upon vesting, shares of common stock will be issued, less amounts withheld for taxes.
- 5Issued shares will be subject to a three-year restriction on transferability, expiring on the third anniversary of the grant date, a Change in Control, or death.
- 6In case of termination due to disability or death before November 1, 2010, the RSUs will fully vest without transfer restrictions.
- 7Termination for any other reason prior to vesting will result in forfeiture of the award.