8-KMaterial Agreements

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Material Agreement (Feb 11, 2005)

Filed February 11, 2005For Securities:CHTR

Summary

This 8-K filing by Charter Communications, Inc. (CHTR) on February 11, 2005, primarily details the terms of a separation agreement with former Executive Vice President and Chief Administrative Officer, Steven A. Schumm. The agreement, effective February 8, 2005, outlines severance payments, bonus eligibility, and stock option treatment for Mr. Schumm following the elimination of his position. Investors should note that the company is providing a 65-week base salary continuation at an annual rate of $450,000, a bonus payment of $15,815, and a one-time payment of $10,347 to cover COBRA expenses. Additionally, Mr. Schumm's stock options will continue to vest during the severance period and he will have an extended period to exercise them. This event is classified under 'Entry into a Material Definitive Agreement' and represents a disclosed executive departure and its associated financial implications for the company.

Key Highlights

  • 1Charter Communications entered into a Separation Agreement and Release with former EVP and Chief Administrative Officer, Steven A. Schumm, effective February 8, 2005.
  • 2Mr. Schumm's position was eliminated effective January 28, 2005.
  • 3The separation agreement includes a 65-week base salary continuation at an annual rate of $450,000.
  • 4Mr. Schumm will receive a bonus of $15,815, contingent upon the timing of senior executive bonus payments for 2004.
  • 5A one-time payment of $10,347 (net of withholding) is included to cover COBRA payments.
  • 6Mr. Schumm's stock options will continue to vest during the 65-week severance period.
  • 7Mr. Schumm will have 60 days post-severance period to exercise any vested stock options.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose the material terms of a Separation Agreement and Release between Charter Communications and its former Executive Vice President and Chief Administrative Officer, Steven A. Schumm, following the elimination of his position.

The agreement includes a 65-week base salary continuation ($450,000 annually), a $15,815 bonus, and a $10,347 payment for COBRA expenses. His stock options will also continue to vest during the severance period, with an extended exercise window.

Mr. Schumm is eligible to receive his bonus of $15,815 at such time as Charter's senior executives receive their bonuses for 2004.

Mr. Schumm's stock options will continue to vest during the 65-week severance period. Following this period, he will have 60 days to exercise any options that have become vested.