8-KLeadership Changes

FISERV INC 8-K Report, Executive Changes (Apr 2, 2010)

Filed April 2, 2010For Securities:FISV

Summary

This Form 8-K filing by Fiserv, Inc. (FISV) reports on the departure of a key executive and the associated separation agreement. On March 31, 2010, the company finalized terms with Peter J. Kight concerning his resignation as Vice Chairman. This agreement, valued at $2,256,072, compensates Mr. Kight in exchange for a two-year commitment to non-competition and non-solicitation clauses. The agreement also formally concludes Mr. Kight's employment and retention agreements with Fiserv. This filing is significant as it addresses the financial implications and contractual terms surrounding the departure of a high-ranking officer, providing transparency to investors regarding executive transitions and potential future competitive risks. The payment structure suggests the company is prioritizing protection against Mr. Kight leveraging his past knowledge for competitive gain.

Key Highlights

  • 1Fiserv, Inc. entered into a separation agreement with Vice Chairman Peter J. Kight on March 31, 2010.
  • 2The agreement is in connection with Mr. Kight's previously announced resignation as Vice Chairman.
  • 3Fiserv will pay Mr. Kight $2,256,072 as part of the separation.
  • 4The payment is in exchange for a two-year non-competition agreement.
  • 5The payment is also in exchange for a two-year non-solicitation agreement.
  • 6The agreement also addresses the termination of Mr. Kight's employment and retention agreements.
  • 7A standard release of claims was also part of the agreement.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose the terms of a separation agreement between Fiserv, Inc. and its departing Vice Chairman, Peter J. Kight, including a significant financial payout in exchange for non-compete and non-solicitation clauses.

Fiserv is paying Peter J. Kight $2,256,072. This payment is in exchange for his resignation as Vice Chairman, the termination of his employment and retention agreements, and his agreement not to compete with or solicit customers/employees of Fiserv for a period of two years.

The non-competition and non-solicitation clauses are designed to protect Fiserv's business interests by preventing Mr. Kight from using his knowledge of the company, its clients, or its operations to the benefit of a competitor or by directly soliciting Fiserv's clients or employees during the two-year period following his departure.

This filing specifically addresses executive transition and related contractual terms. While the payment is substantial, it is presented as a cost for securing non-compete and non-solicitation agreements, which is a standard practice in executive departures. The filing itself does not indicate any financial distress or broader operational changes at Fiserv.