8-KMaterial Agreements

FISERV INC 8-K Report, Material Agreement (Apr 5, 2006)

Filed April 5, 2006For Securities:FISV

Summary

Fiserv, Inc. (FISV) filed an 8-K on April 5, 2006, detailing an amendment to an Employee Restricted Stock Agreement with its President and CEO, Jeffery W. Yabuki. This amendment, effective March 30, 2006, introduces a performance-based vesting component for 52,849 shares of restricted stock previously granted on December 1, 2005. Specifically, the vesting of these shares is now contingent not only on the original time-based vesting schedule (December 1, 2008) but also on the Company achieving a specific earnings per share (EPS) target. This change aligns executive compensation more closely with company performance, signaling a focus on meeting financial goals to unlock executive equity awards. Investors should monitor Fiserv's EPS performance relative to stated targets as a key indicator of executive compensation realization.

Key Highlights

  • 1Fiserv, Inc. amended a restricted stock agreement with its CEO, Jeffery W. Yabuki.
  • 2The amendment applies to 52,849 shares of restricted stock.
  • 3Vesting is now tied to a performance condition: achieving an earnings per share (EPS) target.
  • 4This performance condition is in addition to the previously established time-based vesting date of December 1, 2008.
  • 5The amendment indicates a focus on aligning executive compensation with company financial performance.
  • 6This move suggests management's commitment to achieving specific EPS targets.
  • 7The effective date of the amendment was March 30, 2006.

Frequently Asked Questions

The 8-K filing announces an amendment to an existing restricted stock agreement with Fiserv's CEO. The key change is the introduction of a performance-based vesting requirement tied to an earnings per share target, in addition to the original time-based vesting.

The amendment makes a portion of the CEO's restricted stock award contingent on the company achieving a specific earnings per share target. This means the CEO will only receive these shares if both the performance target and the time-based vesting conditions are met.

Linking stock awards to EPS performance is a common practice to align executive incentives with shareholder interests. It encourages management to focus on improving profitability and delivering value to shareholders, as their own compensation is directly impacted by the company's financial results.

The filing states that the performance condition is based on 'the Company meeting an earnings per share target.' However, the specific EPS target amount is not disclosed in this filing.