Summary
This 8-K filing from General Dynamics Corporation (GD) announces the retirement of L. Hugh Redd II, Senior Vice President and Chief Financial Officer, effective December 31, 2013. The filing details the terms of his retirement agreement, which includes continued salary through his retirement date, eligibility for his 2013 bonus, and provisions for continuing insurance coverage. Investors should note the enhanced retirement benefits granted to Mr. Redd, including significant additional credited service for pension calculations and continued participation in health insurance at active employee rates for a period. Furthermore, his unvested equity awards will not be forfeited, and he will receive financial and tax counseling. Mr. Redd also agrees to be available to the company for matters within his knowledge, indicating a desire for a smooth transition and continued support for the company.
Key Highlights
- 1L. Hugh Redd II, Senior Vice President and Chief Financial Officer, will retire effective December 31, 2013.
- 2A retirement agreement has been entered into with Mr. Redd, outlining specific terms and benefits.
- 3Mr. Redd will receive his current salary through his retirement date and remain eligible for his 2013 bonus.
- 4Significant enhancements to Mr. Redd's pension benefits include additional credited age and service.
- 5Mr. Redd will have continued access to group term life insurance and personal excess liability insurance.
- 6Health, dental, and vision insurance coverage will continue at active employee rates for Mr. Redd and eligible dependents until December 31, 2014.
- 7Unvested equity awards (restricted stock, performance units, stock options) will not be forfeited and will remain subject to plan terms.
- 8The company will provide Mr. Redd with financial and tax counseling valued at approximately $19,000.
- 9Mr. Redd has agreed to be available to the company on an hourly basis for matters within his personal knowledge.