8-KLeadership ChangesExhibits & Filings

Fidelity National Information Services, Inc. 8-K Report, Executive Changes (Aug 22, 2023)

Filed August 22, 2023For Securities:FIS

Summary

Fidelity National Information Services, Inc. (FIS) has announced a significant change in its leadership, appointing James Kehoe as its new Chief Financial Officer (CFO) effective August 21, 2023. Mr. Kehoe brings a wealth of experience, having previously served as CFO at Walgreens Boots Alliance and holding various senior finance roles at Takeda Pharmaceutical, Kraft Foods, and Mondelēz International. This appointment is a key development for investors seeking stability and experienced financial stewardship within the company. The company has entered into a three-year employment agreement with Mr. Kehoe, outlining a compensation package that includes a base salary of $975,000, a target annual bonus of 150% of base salary, a $1.2 million signing bonus, and a $500,000 relocation bonus contingent on his move to Jacksonville, Florida. Additionally, Mr. Kehoe will receive a substantial new hire restricted stock unit grant valued at $10 million, vesting over two years, and will be eligible for future annual equity grants with a target value of $6 million. These compensation elements underscore the company's commitment to attracting and retaining top financial talent. Concurrently, Erik D. Hoag has departed from his role as CFO but will remain with FIS as a non-executive officer through the end of the year to ensure a smooth transition.

Key Highlights

  • 1James Kehoe appointed as the new Chief Financial Officer (CFO) effective August 21, 2023.
  • 2Mr. Kehoe possesses extensive financial leadership experience, including prior CFO roles at Walgreens Boots Alliance and Takeda Pharmaceutical.
  • 3A new three-year employment agreement has been established for Mr. Kehoe.
  • 4Mr. Kehoe's compensation package includes a base salary of $975,000 and a target annual bonus of 150% of base salary.
  • 5Significant new hire incentives include a $1.2 million signing bonus, a $500,000 relocation bonus, and a $10 million restricted stock unit (RSU) grant.
  • 6Mr. Kehoe will be eligible for future annual equity grants with a target value of $6 million.
  • 7Erik D. Hoag has stepped down as CFO to pursue other opportunities but will assist with the transition through year-end.

Frequently Asked Questions

The appointment of James Kehoe as CFO is significant as it brings an executive with extensive experience from large, well-known companies like Walgreens Boots Alliance and Takeda Pharmaceutical to lead FIS's financial operations. Investors often view such experienced hires positively, indicating a commitment to strong financial management and potentially new strategic financial direction.

Mr. Kehoe's compensation package is substantial and includes a base salary of $975,000, a target annual bonus of 150% of his base salary, a $1.2 million signing bonus, and a $500,000 bonus contingent on his relocation to Jacksonville, Florida. He also received a $10 million restricted stock unit (RSU) grant that vests over two years and is eligible for future annual equity grants valued at $6 million.

Erik D. Hoag's departure as CFO marks a leadership change. However, his continued role as a non-executive officer through the end of the year is designed to ensure a smooth and orderly transition of responsibilities to Mr. Kehoe. This continuity should help mitigate any disruption to the company's financial operations during this period.

In the event of termination by the company without cause, or by Mr. Kehoe for good reason, he is entitled to significant severance. This includes a lump sum of 200% of his base salary plus target bonus, any earned but unpaid bonuses, a pro-rata bonus for the year of termination, the signing bonus if unpaid, 18 months of continued medical and dental coverage (or a cash payment equivalent), and continued vesting of equity awards, provided he complies with non-compete and non-solicitation clauses.