8-KLeadership ChangesExhibits & Filings

CENTENE CORP 8-K Report, Executive Changes (Feb 7, 2008)

Filed February 7, 2008For Securities:CNC

Summary

Centene Corporation (CNC) filed an 8-K on February 7, 2008, to report the granting of awards under its 2007 Long Term Incentive Plan to certain executive officers on February 3, 2008. These awards are structured as cash payments contingent upon the company achieving specific revenue growth and pre-tax margin targets over a three-year period, from January 1, 2008, to December 31, 2010. This initiative aims to align executive compensation with the company's long-term financial performance and strategic objectives. The key takeaway for investors is the focus on performance-based compensation for top executives. The structure of the awards, with target, threshold, and maximum payout levels, indicates a clear linkage between executive incentives and the company's ability to meet defined financial benchmarks. Investors should monitor Centene's progress towards these revenue and margin targets in future filings, as achieving them would be a positive indicator of operational success and could translate into increased shareholder value.

Key Highlights

  • 1Centene Corporation granted awards under its 2007 Long Term Incentive Plan to executive officers on February 3, 2008.
  • 2Cash payments from these awards are contingent upon achieving specific revenue growth and pre-tax margin targets.
  • 3The performance period for these targets is three years, from January 1, 2008, through December 31, 2010.
  • 4CEO Michael F. Neidorff has the largest potential award, with a maximum payout of $2,250,000.
  • 5Awards are structured with threshold, target, and maximum payout levels, demonstrating a performance-based compensation philosophy.
  • 6The form of the award agreement is filed as an exhibit (Exhibit 10.1).

Frequently Asked Questions

The purpose of these awards is to incentivize and reward key executive officers based on the company's long-term financial performance. Specifically, the cash payments are tied to achieving defined revenue growth and pre-tax margin targets over a three-year period, aligning executive interests with shareholder value creation.

The compensation awards are determined by the achievement of specific financial performance metrics. There are threshold, target, and maximum payout levels associated with these awards, which are directly linked to Centene Corporation's performance in revenue growth and pre-tax margins between January 1, 2008, and December 31, 2010.

The performance targets relate to Centene Corporation's revenue growth and pre-tax margin performance over the three-year period from January 1, 2008, to December 31, 2010. The specific percentage targets are not detailed in this 8-K but are outlined in the referenced award agreement.

The incentive awards were granted to certain executive officers, including the Named Executive Officers. The report specifically lists Michael F. Neidorff (Chairman and CEO), Eric R. Slusser (EVP and CFO), William N. Scheffel (EVP, Specialty Business Unit), and Carol E. Goldman (EVP and Chief Administrative Officer).