01—Abstract
Summary
Summary of the 8-K filed February 12, 2021. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- Cboe Global Markets amended and restated its Executive Severance Plan on February 11, 2021.
- The updated plan details severance benefits for eligible executives and officers upon qualifying termination.
- Severance multipliers for EVPs are doubled in the event of termination related to a change in control.
- SVPs and other participants (excluding EVPs) receive a 1.5x multiplier for severance in change-in-control scenarios.
- COBRA coverage duration has been extended for all participants, with enhanced periods for EVPs and SVPs during change-in-control events.
- The definition of 'Cause' for termination has been revised to align with the employment agreement of CEO Edward Tilly.
- The plan, as of February 11, 2021, is expected to cover key executive officers including Messrs. Isaacson, Schell, Harkins, Deters, Sexton and Ms. Griebenow.
03—Questions
Frequently Asked Questions
What is the main purpose of the updated Executive Severance Plan?
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.
How does a 'change in control' affect severance benefits for EVPs?
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.
What are the key changes for SVPs and other participants (excluding EVPs) in case of a change in control?
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.
Has the definition of 'Cause' for termination been modified?
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.
04—Continue