8-KLeadership ChangesExhibits & Filings

DIGITAL REALTY TRUST, INC. 8-K Report, Executive Changes (Jun 24, 2019)

Filed June 24, 2019For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

This 8-K filing by Digital Realty Trust, Inc. (DLR) announces the amended and restated employment agreement for its Chief Financial Officer, Andrew P. Power. The new agreement, effective June 18, 2019, extends Mr. Power's tenure through January 1, 2022, with provisions for automatic annual extension thereafter. This provides continuity in financial leadership, which is a positive signal for investors as it indicates stability at a key executive level. The agreement outlines Mr. Power's compensation, including a base salary of $600,000, eligible for increases at the Compensation Committee's discretion. He is also eligible for annual cash performance bonuses with a target of 125% and a maximum of 250% of his base salary, aligning executive incentives with company performance. Importantly, the agreement details severance benefits in the event of termination without cause, by Mr. Power for good reason, or due to death, disability, or retirement, offering a level of security for the executive and clarity on potential exit scenarios.

Key Highlights

  • 1Amended and restated employment agreement signed with CFO Andrew P. Power.
  • 2Agreement extends Mr. Power's employment through January 1, 2022, with potential for automatic annual extensions.
  • 3Annual base salary for Mr. Power set at $600,000, subject to discretionary increases.
  • 4Mr. Power is eligible for annual cash performance bonuses with a target of 125% and a maximum of 250% of his base salary.
  • 5Severance and benefits are outlined for specific termination events including "cause", "good reason", death, disability, and retirement.
  • 6If Mr. Power retires, he will enter into a consulting agreement for continued support on CFO matters, litigation, and client relationships.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce that Digital Realty Trust, Inc. (DLR) has entered into an amended and restated employment agreement with its Chief Financial Officer, Andrew P. Power, ensuring continuity in financial leadership.

The new employment agreement has an initial term commencing June 18, 2019, and ending on January 1, 2022. It will automatically extend for one additional year at the end of the initial term unless either party provides notice of non-renewal.

Mr. Power's compensation includes a base salary of $600,000, which can be increased at the Compensation Committee's discretion. He is also eligible for annual cash performance bonuses, with a target of 125% and a maximum of 250% of his base salary.

The agreement specifies that if Mr. Power's employment is terminated by the company without "cause", or by Mr. Power for "good reason", or in the event of his death, "disability", or "retirement", he will be entitled to certain severance payments and benefits, as defined within the agreement.