Summary
CSX Corporation (CSX) filed an 8-K on February 28, 2018, detailing an extension of its Section 16 Officer Severance Plan. The expiration date for this plan has been moved to February 22, 2019, impacting certain executive officers, including Andrew L. Glassman, Nathan D. Goldman, and Frank A. Lonegro. Other Section 16 officers are covered under separate agreements. The Severance Plan provides specific benefits in the event of termination without cause or resignation for good reason before the new expiration date. These benefits include a lump sum cash payment equivalent to two times the officer's base salary, a lump sum payment equal to one times their target bonus, enhanced pension benefits (three additional years of age and two years of service credit), and pro-rata vesting of unvested equity awards, with performance-based awards still subject to their original performance goals. This filing provides transparency on executive compensation and severance protections.
Key Highlights
- 1CSX Corporation extended the expiration date of its Section 16 Officer Severance Plan to February 22, 2019.
- 2The extension impacts certain executive officers, including Andrew L. Glassman, Nathan D. Goldman, and Frank A. Lonegro.
- 3Severance is triggered by termination without cause or voluntary resignation for good reason.
- 4Eligible officers will receive a cash severance equal to two times their base salary.
- 5A lump sum payment equivalent to one times their target bonus is also provided.
- 6Pension benefits will be enhanced with three additional years of age and two years of service credit.
- 7Pro-rata vesting of unvested equity awards is included, subject to performance goals for performance-based awards.