8-K/ALeadership Changes

CINTAS CORP 8-K/A Report, Executive Changes (Feb 1, 2008)

Filed February 1, 2008For Securities:CTAS

Summary

Cintas Corporation (CTAS) filed an 8-K/A amendment on January 31, 2008, finalizing compensation details for J. Phillip Holloman following his appointment as President and Chief Operating Officer on January 15, 2008. This filing provides transparency into the executive compensation structure for a key leadership role within the company. Investors should note the adjustments made to Mr. Holloman's remuneration package as he takes on expanded responsibilities. The compensation adjustments include a significant increase in base salary, retroactive to January 14, 2008, and the issuance of equity awards in the form of stock options and restricted stock. Furthermore, Mr. Holloman will continue to participate in the Company's comprehensive executive benefit plans, including the Executive Incentive Plan, which links bonus payouts to the achievement of specific company and individual performance metrics, including earnings per share goals. This structure aligns executive incentives with shareholder value creation.

Key Highlights

  • 1J. Phillip Holloman's compensation finalized for his new role as President and Chief Operating Officer.
  • 2Base salary increased to $500,000, effective retroactively from January 14, 2008.
  • 3Mr. Holloman was granted 25,000 non-qualified stock options.
  • 4Mr. Holloman was granted 5,000 restricted stock shares.
  • 5Mr. Holloman will participate in existing executive benefit plans, including the Executive Incentive Plan.
  • 6Executive Incentive Plan bonuses are tied to achieving established goals, including Earnings Per Share (EPS), with potential payouts ranging from 50% to 200% of the target bonus.
  • 7Bonus payouts can be in cash, restricted stock, and non-qualified stock options.

Frequently Asked Questions

The primary purpose of this 8-K/A filing is to disclose the finalized compensation arrangements for J. Phillip Holloman, who was recently appointed as President and Chief Operating Officer of Cintas Corporation.

Mr. Holloman's base salary was increased to $500,000, effective retroactively from January 14, 2008. Additionally, he received a grant of 25,000 non-qualified stock options and 5,000 restricted stock shares.

Bonuses under the Executive Incentive Plan are performance-based. Payouts are contingent on achieving established company goals, specifically Earnings Per Share (EPS) targets, and individual performance goals. The payout can range from 50% to 200% of the target bonus, and no bonus is paid if certain goal levels are not met.

Bonus payouts under the Executive Incentive Plan can be made in cash, restricted stock, and non-qualified stock options, providing a mix of immediate and long-term incentives.