8-KLeadership ChangesExhibits & Filings

Cboe Global Markets, Inc. 8-K Report, Executive Changes (Feb 12, 2021)

Filed February 12, 2021For Securities:CBOE

Summary

Cboe Global Markets, Inc. (CBOE) announced on February 11, 2021, an amendment and restatement of its Executive Severance Plan. This updated plan outlines specific severance benefits for eligible executives and officers upon a qualifying termination of employment. Key changes include modifications to severance multipliers and the duration of company-paid COBRA premiums, particularly in scenarios involving a change in control. The amendments aim to provide clear compensation structures for senior leadership during uncertain employment situations. Investors should note the increased severance multipliers and extended COBRA coverage for Executive Vice Presidents (EVPs) and Senior Vice Presidents (SVPs) under change-in-control circumstances, suggesting a focus on retaining and protecting key executive talent during potential M&A activities or significant corporate events.

Key Highlights

  • 1Cboe Global Markets amended and restated its Executive Severance Plan on February 11, 2021.
  • 2The updated plan details severance benefits for eligible executives and officers upon qualifying termination.
  • 3Severance multipliers for EVPs are doubled in the event of termination related to a change in control.
  • 4SVPs and other participants (excluding EVPs) receive a 1.5x multiplier for severance in change-in-control scenarios.
  • 5COBRA coverage duration has been extended for all participants, with enhanced periods for EVPs and SVPs during change-in-control events.
  • 6The definition of 'Cause' for termination has been revised to align with the employment agreement of CEO Edward Tilly.
  • 7The plan, as of February 11, 2021, is expected to cover key executive officers including Messrs. Isaacson, Schell, Harkins, Deters, Sexton and Ms. Griebenow.

Frequently Asked Questions

The main purpose of the updated Executive Severance Plan is to define and standardize the severance benefits provided to eligible executives and officers in the event of a qualifying termination of employment. It also establishes specific provisions for terminations occurring in connection with a change in control of the company.

In the event of a termination related to a change in control, Executive Vice Presidents (EVPs) will receive a severance multiplier of two times the sum of their annual base salary and target annual bonus. Additionally, company-paid COBRA premiums for EVPs will be extended to twenty-four (24) months.

For Senior Vice Presidents (SVPs) and all other participants (excluding EVPs), severance in case of a change in control will be one and a half times their annual base salary plus target annual bonus. Their company-paid COBRA premiums will be extended to eighteen (18) months.

Yes, the definition of 'Cause' for termination has been revised to be generally consistent with the terms outlined in the Employment Agreement between Cboe Global Markets, Inc. and Edward Tilly, dated February 11, 2020.