Summary
This 8-K filing from Emerson Electric Co. (EMR) details the transition of former CEO David N. Farr into a consulting role and his continued Board and employee status through early May and May 31, 2021, respectively. The company has entered into a Letter Agreement and a Consulting Agreement with Mr. Farr to formalize these arrangements following his retirement as CEO on February 5, 2021. These agreements outline his post-employment obligations, including non-compete and non-solicitation clauses, and the terms of his continued advisory services.
Key Highlights
- 1David N. Farr will retire as Director and non-executive Chairman of the Board on May 5, 2021.
- 2Mr. Farr will remain an employee of the Company through May 31, 2021.
- 3A Letter Agreement includes a five-year non-compete and non-solicitation commitment from Mr. Farr.
- 4Mr. Farr is eligible to receive his base salary and certain benefits through May 31, 2021.
- 5He remains eligible for a pro rata bonus for fiscal 2021 and full payouts of certain earned performance share awards, subject to company performance.
- 6All vested options held by Mr. Farr will remain exercisable until their original expiration date of October 1, 2023.
- 7A Consulting Agreement provides for Mr. Farr to offer advisory services on an as-needed basis from June 1, 2021, through December 31, 2021 (extendable), with a monthly fee of $117,000.