8-KLeadership Changes

EQUIFAX INC 8-K Report, Executive Changes (Feb 13, 2008)

Filed February 13, 2008For Securities:EFX

Summary

Equifax Inc. (EFX) filed an 8-K on February 13, 2008, detailing executive compensation decisions made by its Compensation, Human Resources and Management Succession Committee on February 7, 2008. The report outlines the payment of 2007 annual cash incentive awards (bonuses) to its named executive officers, with awards ranging from $327,764 to $2,019,960, based on corporate-wide goals like earnings per share (EPS) and revenue, along with individual objectives. Furthermore, the filing discloses the approval of 2008 compensation packages for these executives. This includes stock option grants and restricted stock unit (RSU) awards intended to incentivize long-term performance and retention. The company also set its 2008 financial objectives for executive compensation, which remain focused on EPS and revenue, with unchanged payout structures from the previous year. Finally, 2008 base salaries for the named executive officers were approved, with increases for some positions.

Key Highlights

  • 1Payment of 2007 annual cash incentive awards totaling significant sums for named executive officers, with CEO Richard F. Smith receiving the largest award of $2,019,960.
  • 22007 bonus targets were based on a percentage of base salary and performance against pre-determined goals including EPS (65%), revenue (15%), and individual management objectives (20%).
  • 3Approval of 2008 stock option grants for named executive officers, with vesting over three years and subject to employment continuation and change-in-control provisions.
  • 4Granting of 2008 restricted stock units (RSUs) to named executive officers, also with a three-year vesting period tied to continued employment, death, disability, or change in control.
  • 5Confirmation that 2008 corporate performance objectives for compensation remain focused on earnings per share and revenue, with unchanged weighting and payout structures.
  • 6Setting of 2008 annual base salaries for named executive officers, with CEO Richard F. Smith's salary at $1,450,000 and other officers receiving amounts between $388,000 and $456,750.

Frequently Asked Questions

The primary performance metrics for 2007 executive bonuses were earnings per share (EPS), which accounted for 65% of the incentive, revenue (15%), and individual management objectives (20%).

The 2008 stock options vest over a three-year period (33-1/3% on each of the first three anniversaries of the grant date), provided the holder remains employed. The 2008 restricted stock units will vest three years from the grant date, contingent upon continued employment unless terminated due to retirement, death, disability, or a change in control.

The company's 2008 financial objectives for executive compensation continue to focus on earnings per share and revenue, with the relative weightings and payout percentages at threshold, target, and maximum goal attainment remaining unchanged from 2007.

The approved annual base salary for CEO Richard F. Smith in 2008 is $1,450,000.