Summary
Colgate-Palmolive Company (CL) filed an 8-K on April 11, 2022, announcing a significant change in its executive compensation policy regarding severance packages. Following engagement with its stockholders, the Board of Directors adopted a new policy on April 8, 2022, that limits cash severance benefits for executive officers. Specifically, new severance agreements will not exceed 2.99 times the sum of the executive officer's base salary plus their target annual bonus opportunity, unless the agreement is ratified by stockholders.
Key Highlights
- 1Colgate-Palmolive's Board of Directors adopted a new executive officer cash severance policy on April 8, 2022.
- 2The new policy was implemented after engagement with the company's stockholders.
- 3New severance agreements for executive officers will be capped at 2.99 times base salary plus target annual bonus.
- 4Severance agreements exceeding this cap will require stockholder ratification.
- 5This policy change aims to align executive compensation practices with shareholder feedback.
- 6The filing includes the full text of the Colgate-Palmolive Company Executive Officer Cash Severance Policy as an exhibit.