8-KLeadership Changes

EIDP, Inc. 8-K Report, Executive Changes (Sep 23, 2008)

Filed September 23, 2008For Securities:CTA-PBCTA-PA

Summary

E. I. du Pont de Nemours and Company (DuPont) announced significant leadership changes via an 8-K filing on September 22, 2008. Effective October 1, 2008, Ellen J. Kullman was appointed President and elected to the Board of Directors. She will further assume the role of Chief Executive Officer on January 1, 2009, succeeding Chad O. Holliday, who will transition to Chairman. This marks a planned succession that investors should closely monitor for strategic direction under new leadership. The filing also details adjustments to Ms. Kullman's compensation to reflect her expanded responsibilities. Her annual salary will increase from $665,000 to $900,000 on October 1, 2008, and further to $1,200,000 on January 1, 2009. Her short-term incentive target for 2008 was also established. Investors should consider these compensation changes in the context of the company's performance and future growth strategies under Ms. Kullman's leadership.

Key Highlights

  • 1Ellen J. Kullman named President of E. I. du Pont de Nemours, effective October 1, 2008.
  • 2Ellen J. Kullman elected to the Board of Directors, effective October 1, 2008.
  • 3Ellen J. Kullman appointed Chief Executive Officer, effective January 1, 2009, succeeding Chad O. Holliday.
  • 4Chad O. Holliday will remain as Chairman during a transition period, with Ms. Kullman expected to become Chairman later.
  • 5Ms. Kullman's annual salary increased to $900,000 effective October 1, 2008, and will further increase to $1,200,000 effective January 1, 2009.
  • 6Ms. Kullman's 2008 short-term incentive target under the EIP was set at $819,450.
  • 7The spouse of Ms. Kullman is a Director-Corporate Marketing at DuPont, with 2007 compensation of $340,000.

Frequently Asked Questions

DuPont announced that Ellen J. Kullman will become President on October 1, 2008, and will also join the Board of Directors. She is slated to become Chief Executive Officer on January 1, 2009, taking over from Chad O. Holliday, who will transition to Chairman.

Ms. Kullman's annual salary will increase from $665,000 to $900,000 effective October 1, 2008, and will further rise to $1,200,000 effective January 1, 2009, to reflect her new roles as President and CEO.

Mr. Holliday will remain with the company as Chairman for a transition period. It is anticipated that Ms. Kullman will eventually assume the role of Chairman as well.

The filing notes that Ms. Kullman's spouse is a Director-Corporate Marketing at DuPont and received $340,000 in compensation in 2007, expected to be comparable in 2008. The compensation is stated to be commensurate with peers, and the board actions regarding Ms. Kullman's appointments and compensation appear to be separate.