8-KMaterial Agreements

FISERV INC 8-K Report, Material Agreement (Oct 28, 2005)

Filed October 28, 2005For Securities:FISV

Summary

Fiserv, Inc. (FISV) announced on October 28, 2005, the entry into a material definitive agreement regarding the employment of Arun Maheshwari. Mr. Maheshwari has been appointed President of the Fiserv Global Services Group (FGS), with his employment effective October 1, 2005. This appointment is significant as it involves a key executive role within a major operational segment of Fiserv. The agreement includes a substantial compensation package and a five-year minimum term, indicating a commitment to Mr. Maheshwari's leadership. The structure of his compensation, including signing bonuses, annual salary, and performance-based bonuses tied to FGS's performance metrics, suggests an alignment of incentives with the company's strategic goals. Additionally, the inclusion of a Key Executive Employment and Severance Agreement (KEESA) provides for significant benefits in the event of a change in control, highlighting the company's focus on retaining and protecting key talent during potential transitional periods.

Key Highlights

  • 1Fiserv, Inc. has appointed Arun Maheshwari as President of its Global Services Group (FGS).
  • 2Mr. Maheshwari's employment commenced on October 1, 2005, with the agreement effective October 27, 2005.
  • 3The employment agreement has a minimum term of five years.
  • 4Mr. Maheshwari will receive a total of $400,000 in signing bonuses and a minimum annual salary of $400,000.
  • 5Compensation includes potential special bonuses tied to FGS net income under specific termination or retirement scenarios, and a $100,000 performance bonus for achieving FGS goals in March 2007.
  • 6A Key Executive Employment and Severance Agreement (KEESA) provides for substantial benefits, including a cash payment of two times salary and bonus, and continued benefits for up to three years, in the event of termination within three years following a change in control.
  • 7The KEESA includes provisions for Mr. Maheshwari to elect whether to receive full payments subject to excise tax or reduced payments to avoid the tax.

Frequently Asked Questions

Arun Maheshwari has been appointed President of Fiserv's Global Services Group (FGS). This is a key executive role, suggesting the company is placing significant importance on the leadership and strategic direction of this particular business segment.

Mr. Maheshwari will receive $400,000 in signing bonuses, a minimum annual salary of $400,000, and is eligible for additional performance-based and special bonuses. The agreement has a minimum term of five years.

The Key Executive Employment and Severance Agreement (KEESA) provides that if Mr. Maheshwari's employment is terminated under specific conditions within three years after a change in control, he is entitled to a cash payment equal to twice his annual salary and highest annual bonus, plus continuation of certain benefits for up to three years.

His compensation includes a performance bonus contingent on FGS meeting specific staffing, profit, and service quality goals, and a special bonus that can be triggered by events related to FGS's net income performance under certain circumstances.