8-KLeadership ChangesExhibits & Filings

GENERAL DYNAMICS CORP 8-K Report, Executive Changes (Mar 20, 2013)

Filed March 20, 2013For Securities:GD

Summary

This 8-K filing by General Dynamics Corporation (GD) on March 20, 2013, reports on the retirement of Gerard J. DeMuro, Executive Vice President of Information Systems and Technology, effective March 31, 2013. The company has entered into a Retirement Agreement with Mr. DeMuro detailing the terms of his departure, which include continued salary until retirement, various insurance coverages, and a retirement payment. The agreement also outlines provisions for his pension benefits, continued participation in company health plans, and the treatment of unvested equity awards. Investors should note the specific financial terms of the retirement package, including a $710,000 retirement payment and the continuation of benefits that may offer Mr. DeMuro continued financial stability post-employment. The agreement also includes Mr. DeMuro's commitment to assist the company with ongoing matters, underscoring the importance of his past role and knowledge. This filing provides transparency regarding executive transitions and associated compensation arrangements.

Key Highlights

  • 1Gerard J. DeMuro, EVP of Information Systems and Technology, is retiring effective March 31, 2013.
  • 2A Retirement Agreement has been executed between the Company and Mr. DeMuro.
  • 3Mr. DeMuro will receive a retirement payment of $710,000.
  • 4Certain benefits such as group term life insurance, personal excess liability insurance, and medical/dental/vision coverage will continue for a specified period.
  • 5Unvested equity awards (restricted stock, performance restricted stock units, stock options) will not be forfeited.
  • 6Mr. DeMuro has agreed to provide consulting services and assistance on matters within his knowledge post-retirement.
  • 7The agreement includes a general release of claims by Mr. DeMuro and customary confidentiality provisions.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report the retirement of Gerard J. DeMuro, Executive Vice President of Information Systems and Technology, and to disclose the terms of his Retirement Agreement with General Dynamics Corporation.

Mr. DeMuro will receive a retirement payment of $710,000. Additionally, his pension benefit will be adjusted to reflect a later deferral date for calculation purposes. He will also receive his current salary through March 31, 2013.

The Retirement Agreement states that Mr. DeMuro's unvested grants of restricted stock, performance restricted stock units, and stock options will not be forfeited and will remain subject to the terms of the applicable equity compensation plan and award agreement.

Mr. DeMuro has agreed to remain available to the Company on an hourly basis for consulting concerning proposals, contracts, and programs over which he had oversight, and to assist in the investigation or litigation of matters about which he had personal knowledge during his employment.