Summary
Emerson Electric Co. (EMR) has filed an 8-K report detailing the separation of officer Robert T. Sharp, effective September 30, 2020. The agreement outlines compensation and benefits Mr. Sharp will receive post-separation, including salary continuation and continued health benefits until June 30, 2021, or until he commences other employment. He remains eligible for his fiscal 2020 annual bonus and payouts from certain performance share programs, contingent on the company meeting performance objectives. His restricted stock awards will continue to vest and be paid as scheduled.
Key Highlights
- 1Robert T. Sharp's separation from Emerson Electric Co. is effective September 30, 2020.
- 2Mr. Sharp will receive salary continuation and health/welfare benefits until June 30, 2021, or until he secures new employment.
- 3He remains eligible for his fiscal 2020 annual bonus based on company performance.
- 4Eligibility for payouts from Fiscal 2018-2020, 2019-2021, and 2020-2022 Performance Shares Programs is maintained, subject to performance targets.
- 5Restricted stock awards will continue to vest and be paid according to their original terms.
- 6Mr. Sharp agrees to a four-year non-compete and non-solicitation period, and to protect confidential information.
- 7Breach of obligations by Mr. Sharp will result in forfeiture of payments and potential repayment of benefits received.
Frequently Asked Questions
This 8-K report concerns the separation of a certain officer, Robert T. Sharp, from Emerson Electric Co. and the terms of his separation agreement.
The primary financial implications involve the salary continuation, benefits, and potential bonus and stock payouts to Mr. Sharp as outlined in the separation agreement. These are contingent on continued company performance and Mr. Sharp's adherence to the agreement's terms.
Mr. Sharp will receive salary continuation and certain benefits until June 30, 2021, or until he starts new employment. He is also eligible for his fiscal 2020 bonus and vested awards from specific performance share programs, provided performance targets are met. His restricted stock awards will continue to vest and be paid as scheduled.
Mr. Sharp has agreed to a four-year period of non-competition and non-solicitation, to maintain confidentiality of company information, to reaffirm existing obligations, and to comply with non-disparagement clauses. Violating these terms could lead to forfeiture of benefits.