8-KLeadership ChangesExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Executive Changes (Aug 6, 2010)

Filed August 6, 2010For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) filed an 8-K on August 6, 2010, to report the departure of its Executive Vice President and Chief Financial Officer, Eloise E. Schmitz, effective July 31, 2010. The filing details the terms of her separation agreement, which includes significant severance payments and benefits. Investors should note the financial implications of Ms. Schmitz's departure. The separation agreement provides for substantial compensation, including two years of her base salary and target bonus, a lump sum payment related to the Value Creation Plan, and continued benefits coverage. This event marks a notable change in the company's executive leadership, particularly in the critical finance function, and the associated costs are detailed within the filing.

Key Highlights

  • 1Eloise E. Schmitz, EVP and CFO, departed from Charter Communications effective July 31, 2010.
  • 2Ms. Schmitz will receive severance payments equivalent to two times her base salary and annual target bonus through July 31, 2012.
  • 3The total aggregate payment for salary and bonus continuation is capped at $1,837,500.
  • 4A lump sum payment of $2,250,000 is being made, related to target bonuses under the Cash Incentive Program.
  • 5The company will cover COBRA benefits for Ms. Schmitz for twenty-four months, with an estimated cost of $22,487.04.
  • 6Ms. Schmitz has agreed to continued non-competition, non-interference, and non-disclosure obligations.
  • 7The separation agreement was filed as an exhibit to the 8-K.

Frequently Asked Questions

The financial impact includes continued salary and bonus payments totaling up to $1,837,500 over two years, a lump sum payment of $2,250,000, and an estimated $22,487.04 for COBRA benefits continuation, along with outplacement services and accrued vacation payout. The total immediate and near-term financial cost is substantial.

The 8-K filing states that the company entered into a separation agreement with Ms. Schmitz governing the terms and conditions of her employment termination. The specific reasons for her departure are not detailed in this filing beyond the mutually agreed-upon separation.

Ms. Schmitz has agreed to abide by non-disparagement provisions and to continue to be bound by her existing non-competition (through July 30, 2011), non-interference, and non-disclosure obligations as outlined in her prior employment agreement.

The Form 8-K reporting this event was filed with the SEC on August 6, 2010, with the earliest event reported being August 5, 2010, and her employment termination effective July 31, 2010.