8-KLeadership ChangesExhibits & Filings

EMERSON ELECTRIC CO 8-K Report, Executive Changes (Nov 14, 2017)

Filed November 14, 2017For Securities:EMR

Summary

This 8-K filing from Emerson Electric Co. announces a significant leadership transition. Edgar M. Purvis, Jr., Executive Vice President and Chief Operating Officer, will be retiring effective December 31, 2017. This transition includes a detailed letter agreement outlining Mr. Purvis's post-employment obligations, such as non-competition and confidentiality, in exchange for continued eligibility for certain performance-based awards, vested stock options, and pension benefits. The company has also appointed Steven J. Pelch as the new Chief Operating Officer and Executive Vice President, Organizational Development. Mr. Pelch's compensation has been adjusted to reflect his new role, with a base salary increase. Investors should note the details of Mr. Purvis's retirement package and the internal promotion of Mr. Pelch, which signals a focus on continuity within the company's operational leadership.

Key Highlights

  • 1Retirement of Edgar M. Purvis, Jr. as Executive Vice President and Chief Operating Officer, effective December 31, 2017.
  • 2Mr. Purvis enters into a five-year non-competition and non-solicitation agreement.
  • 3Mr. Purvis remains eligible for full payout of 2016 and 2017 performance share programs, subject to company performance.
  • 4All of Mr. Purvis's unvested stock options will vest upon retirement and remain exercisable for five years.
  • 5Mr. Purvis will receive pension benefits from qualified and non-qualified plans, with a significant monthly benefit from the non-qualified plan at age 65.
  • 6Steven J. Pelch appointed as the new Chief Operating Officer and Executive Vice President, Organizational Development.
  • 7Mr. Pelch's base salary increased to $550,000 in connection with his new role.

Frequently Asked Questions

Mr. Purvis's retirement agreement includes a five-year non-compete and non-solicitation period. He will forfeit benefits if he breaches these obligations. However, he remains eligible for performance share payouts (subject to company achievement), his unvested stock options will vest and remain exercisable for five years, and he will receive his earned pension benefits from qualified and non-qualified plans.

Steven J. Pelch, formerly Executive Vice President-Organization Planning and Development, has been appointed as the new Chief Operating Officer and Executive Vice President, Organizational Development.

Mr. Pelch's base salary has been increased from $460,000 to $550,000 in connection with his appointment as Chief Operating Officer.

The filing details the benefits Mr. Purvis will continue to receive, including vested stock options and pension payouts. While these represent future obligations or continued entitlements, the agreement also includes a penalty for breach of his post-employment obligations, potentially offsetting costs in such an event. The specific financial impact on current earnings is not detailed, but the focus is on continued performance and adherence to covenants.