8-KLeadership ChangesOther EventsExhibits & Filings

FISERV INC 8-K Report, Executive Changes (Apr 10, 2020)

Filed April 10, 2020For Securities:FISV

Summary

Fiserv Inc. (FISV) filed an 8-K on April 10, 2020, primarily detailing executive compensation adjustments and other corporate actions in response to the COVID-19 pandemic. Notably, the Company's top executives, including the CEO and COO, agreed to temporary base salary reductions, with the CEO and COO forgoing 100% of their salaries, while other named executive officers would forgo 20%. These reductions are explicitly stated not to impact other rights under employment agreements or compensation plans that reference base salary, and the foregone amounts will be directed to the Fiserv Cares Fund to assist employees facing financial hardship due to the pandemic. In addition to executive actions, the Board's Compensation Committee suspended all cash compensation for non-employee directors, also channeling these funds to the Fiserv Cares Fund. Furthermore, the company amended its Employee Stock Purchase Plan (ESPP) to temporarily suspend the discount on shares purchased from April 1, 2020, through December 31, 2020. These measures reflect a proactive approach by Fiserv's leadership and board to support its workforce and reallocate resources during the challenging economic environment brought on by COVID-19.

Key Highlights

  • 1Named executive officers, including the CEO and COO, have agreed to temporary base salary reductions, with top executives forgoing 100% of their base pay.
  • 2The foregone executive salaries will be directed to the Fiserv Cares Fund to provide financial assistance to employees impacted by COVID-19.
  • 3Non-employee directors will have their cash compensation suspended, with those funds also allocated to the Fiserv Cares Fund.
  • 4The Fiserv Cares Fund is established to support associates experiencing financial hardship due to COVID-19.
  • 5The temporary salary reductions will not affect other employment agreement rights or compensation plans referencing base salary.
  • 6The Employee Stock Purchase Plan (ESPP) discount has been suspended from April 1, 2020, to December 31, 2020.
  • 7These actions demonstrate leadership's commitment to supporting employees during the economic impact of the COVID-19 pandemic.

Frequently Asked Questions

The primary reason for these temporary adjustments is to provide financial assistance to Fiserv associates experiencing financial hardship due to the COVID-19 pandemic, channeled through the Fiserv Cares Fund. It also reflects a shared sacrifice among leadership and the board.

According to the filing, these temporary salary reductions will not modify other rights under applicable employment agreements or compensation plans determined by reference to base salary. Employee benefits determined by reference to base salary are also not intended to be reduced, except as required by law.

The Fiserv Cares Fund is an initiative established by the company to provide financial assistance to Fiserv associates who are facing financial hardship as a direct result of the COVID-19 pandemic. Funds are being generated from the foregone executive salaries and suspended director compensation.

Effective April 1, 2020, Fiserv has temporarily suspended the discount on shares purchased under its Employee Stock Purchase Plan (ESPP) until December 31, 2020. This means employees will purchase shares at the full price during this period, rather than at a discounted rate.