8-KEarnings & ResultsLeadership ChangesRegulation FD+1

EIDP, Inc. 8-K Report, Financial Results (Oct 5, 2015)

Filed October 5, 2015For Securities:CTA-PBCTA-PA

Summary

E. I. du Pont de Nemours and Company (EIDP) filed an 8-K on October 5, 2015, announcing significant leadership changes and an update to its financial outlook. The company revealed that its CEO and Chair, Ellen J. Kullman, will step down on October 16, 2015, after 27 years of service. She will receive a separation package including continued salary and benefits for twelve months, along with pro-rata bonus and vested benefits. In parallel, EIDP announced the appointment of Edward D. Breen as Interim Executive Officer, effective October 6, 2015, who will transition to Interim Chair and CEO on October 16, 2015. Mr. Breen brings extensive experience from leadership roles at Tyco International and Motorola. The company also provided an update on its 2015 financial outlook, anticipating that approximately 25% of the second-half earnings will be recognized in the third quarter, with finalization of Q3 financial statements pending. Additionally, EIDP is accelerating and expanding targeted cost savings from its operational redesign. The company plans to issue its third-quarter earnings release on October 27, 2015.

Key Highlights

  • 1CEO and Chair Ellen J. Kullman to step down on October 16, 2015.
  • 2Edward D. Breen appointed as Interim Executive Officer and will become Interim Chair and CEO.
  • 3Ms. Kullman's separation agreement includes 12 months of continued salary and benefits, pro-rata bonus, and vested benefits.
  • 4Company updates 2015 second-half and full-year outlook, with ~25% of H2 expected in Q3.
  • 5Accelerating and expanding targeted cost savings initiatives.
  • 6Third-quarter earnings release scheduled for October 27, 2015.
  • 7Edward D. Breen granted 100,000 restricted stock units vesting over six months.

Frequently Asked Questions

The filing states that Ellen J. Kullman's tenure as CEO and Chair will come to a close, and she will separate from service with the company. While the specific reasons are not detailed in this 8-K, it indicates a planned departure and separation agreement.

Edward D. Breen has been appointed as Interim Executive Officer effective October 6, 2015, and will assume the role of Interim Chair and Chief Executive Officer effective October 16, 2015. He has a strong background in leading large global companies like Tyco International.

E. I. du Pont de Nemours and Company anticipates earning about 25% of its second-half outlook in the third quarter. The company is also accelerating and expanding its cost savings measures. Investors should look to the upcoming Q3 earnings release on October 27, 2015, for more detailed financial information.

Ms. Kullman is entitled to continued cash payments for twelve months equivalent to her annual base salary and 2014 bonus ($2,795,000 aggregate), continued medical and dental benefits, and life insurance for twelve months. She will also receive a pro-rata bonus for 2015 based on performance and her vested deferred compensation, pension, and retirement-based equity awards.