8-KLeadership ChangesMaterial AgreementsExhibits & Filings

GLOBAL PAYMENTS INC 8-K Report, Material Agreement (Mar 3, 2010)

Filed March 3, 2010For Securities:GPN

Summary

This Form 8-K filing by GLOBAL PAYMENTS INC. (GPN) on March 3, 2010, primarily reports on a material definitive agreement related to executive compensation and employment terms. The most significant event is the entry into an Employment Agreement with David E. Mangum, the Executive Vice President and Chief Financial Officer, effective March 1, 2010, for an initial term of three years. This agreement outlines Mr. Mangum's compensation, including base salary, annual incentive bonus opportunities based on performance objectives, and participation in standard executive benefit plans. Importantly, it also includes restrictive covenants such as non-disclosure, non-competition, and non-solicitation clauses for a period of 24 months post-termination, designed to protect the company's interests. The filing also specifies termination conditions and potential severance benefits, providing clarity on the executive's tenure and protections.

Key Highlights

  • 1Global Payments Inc. entered into a material definitive agreement with its EVP and CFO, David E. Mangum, on March 1, 2010.
  • 2The agreement establishes an initial term of three years for Mr. Mangum's employment.
  • 3Mr. Mangum's compensation includes a base annual salary, subject to review, and an at-risk annual incentive bonus.
  • 4The agreement details Mr. Mangum's eligibility to participate in the company's standard executive incentive, savings, and welfare benefit plans.
  • 5Mr. Mangum has agreed to non-disclosure, non-competition, and non-solicitation clauses for 24 months following employment termination.
  • 6The agreement outlines various termination provisions, including termination by the company for cause or poor performance, or by Mr. Mangum, as well as termination due to death, disability, or retirement.
  • 7Severance benefits may be payable to Mr. Mangum depending on the circumstances and timing of termination.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report the entry into a material definitive agreement, specifically an Employment Agreement with David E. Mangum, the company's Executive Vice President and Chief Financial Officer.

The agreement has an initial term of three years, includes a base annual salary and annual performance-based incentive bonus opportunities, and covers participation in standard executive benefit plans. It also includes significant non-compete and non-solicitation clauses lasting 24 months after employment termination.

The company is protected by a 24-month post-termination restriction on Mr. Mangum disclosing confidential information, competing with Global Payments Inc., or soliciting the company's customers or employees. The agreement also allows termination for 'cause' or 'poor performance'.

Yes, the agreement details various termination scenarios, including termination by the company (for cause, poor performance, or no reason), resignation by Mr. Mangum (with or without good reason), and termination due to death, disability, or retirement. Depending on the reason and timing, Mr. Mangum may be entitled to certain severance benefits.