Summary
Centene Corporation (CNC) filed an 8-K on February 6, 2014, reporting a key governance change approved by its Board of Directors on February 3, 2014. The company amended its By-Laws to remove a restriction that previously prohibited directors from receiving compensation from third parties for serving on the Board. This change allows for greater flexibility in director compensation arrangements and could potentially broaden the pool of qualified candidates for the Board.
Key Highlights
- 1Amendment to Company By-Laws adopted on February 3, 2014.
- 2Removal of prohibition on third-party compensation for directors.
- 3This change allows directors to receive compensation from third parties for their service.
- 4The amendment aims to provide greater flexibility in director compensation.
- 5Potential to attract a wider range of director candidates.
Frequently Asked Questions
The main purpose was to remove a restriction that prevented Centene's directors from receiving compensation from third parties for their roles on the Board. This provides more flexibility in director compensation.
The amendment was adopted by the Board of Directors on February 3, 2014.
While the amendment relates to director compensation, its primary impact is on the Board's ability to structure compensation. Investors may want to review the full amended By-Laws for any indirect implications.
This change could potentially broaden the pool of qualified individuals willing to serve as directors, as it removes a compensation limitation. It also allows for more diverse compensation structures.