8-KLeadership ChangesExhibits & Filings

DOLLAR GENERAL CORP 8-K Report, Executive Changes (Jan 13, 2010)

Filed January 13, 2010For Securities:DG

Summary

Dollar General Corporation (DG) filed an 8-K on January 13, 2010, reporting the departure of David L. Bere, President and Chief Strategy Officer, effective January 29, 2010. The filing details the terms of his separation agreement, which includes a severance package consisting of multiple times his base salary and target bonus, an earned bonus for the current fiscal year, and continued benefit contributions. This event marks a significant change in senior leadership, and investors will be keen to understand the strategic implications of Mr. Bere's exit and the execution of his separation terms. Furthermore, the separation agreement includes provisions that modify the terms of the management stockholder's agreement, notably terminating the company's call rights and waiving transfer restrictions following the expiration of the underwriter lock-up period from the company's recent initial public offering. These details are crucial for understanding executive compensation and corporate governance related to insider equity following the IPO.

Key Highlights

  • 1David L. Bere, President and Chief Strategy Officer, to depart Dollar General effective January 29, 2010.
  • 2Bere will receive a severance package including two times his base salary and target bonus.
  • 3The severance package also includes an actual bonus for the fiscal year ending January 29, 2010, if earned.
  • 4The company will continue contributions for Bere's medical, dental, and vision benefits for a period equivalent to two times the annual contribution.
  • 5The separation agreement terminates Dollar General's call rights under the management stockholder's agreement as of January 11, 2010.
  • 6Transfer restrictions on Mr. Bere's shares under the management stockholder's agreement will be waived upon the expiration of the underwriter lock-up period post-IPO.

Frequently Asked Questions

The financial impact will be primarily the severance payment, which includes two times his base salary and target bonus, any earned bonus for the fiscal year, and continued benefit contributions. The exact dollar amounts are not specified in this 8-K but will be calculable based on his compensation details at the time of departure. Investors should look for this information in subsequent filings or financial reports.

The 8-K filing does not provide a specific reason for Mr. Bere's departure. It only states that he will cease employment and outlines the terms of his separation agreement.

The separation agreement terminates the company's call rights under the management stockholder's agreement, meaning Dollar General can no longer force the repurchase of Mr. Bere's shares. Additionally, transfer restrictions will be waived post-IPO lock-up, allowing Mr. Bere to sell his shares more freely after that period.

Mr. Bere's employment will cease effective January 29, 2010. The separation agreement was entered into on January 11, 2010, and its terms, including the termination of call rights, are effective as specified in the agreement, with some provisions contingent on his execution of a release.