Summary
Expedia, Inc. (EXPE) filed an 8-K on March 7, 2014, detailing an amendment to the employment agreement for its Executive Vice President and Chief Financial Officer, Mark Okerstrom. The amendment extends his employment term for three years, concluding in March 2017, and increases his annual base salary from $500,000 to $625,000. This reflects a commitment to retaining key executive talent as the company navigates its business landscape. The filing also outlines specific severance provisions and restrictive covenants applicable in the event of termination.
Key Highlights
- 1Amended employment agreement for CFO Mark Okerstrom, extending his term to March 2017.
- 2Increased annual base salary for Mr. Okerstrom from $500,000 to $625,000.
- 3Specific severance terms are detailed, including pro rata bonus consideration, equity vesting acceleration, extended stock option exercise periods, and continued salary/COBRA payments.
- 4Restrictive covenants (non-compete and non-solicitation) remain in place for 18 months post-termination.
- 5Mr. Okerstrom was awarded an option to purchase 50,000 shares of Expedia common stock.
- 6The stock option grant has an exercise price of $74.71 and vests annually over four years.
- 7The amendment and stock option grant demonstrate continued investment in and incentive for key executive leadership.
Frequently Asked Questions
The primary purpose of this 8-K filing is to report an amendment to the employment agreement of Expedia's Chief Financial Officer, Mark Okerstrom, and to disclose a stock option award granted to him. This demonstrates the company's engagement with its executive compensation and retention strategies.
Mr. Okerstrom's annual base salary is increased from $500,000 to $625,000. Additionally, he received a new stock option award for 50,000 shares.
In the event of termination by the Company without Cause or by Mr. Okerstrom for Good Reason, severance may include pro rata bonus consideration, acceleration of equity vesting for up to 12 months, an extended period to exercise vested stock options (18 months or expiration), and continued payment of base salary and COBRA premiums for up to 12 months or the remainder of the employment term, whichever is longer.
The amended employment agreement has a three-year term expiring in March 2017. The restrictive covenants (non-compete and non-solicitation) apply for 18 months following termination of employment.