Summary
This 8-K filing from Hewlett Packard Enterprise Company (HPE) announces a key leadership transition within its finance department and provides updates on executive compensation. Jeff T. Ricci will be stepping down as Senior Vice President, Controller, and Principal Accounting Officer, effective July 1, 2022. He will transition to a new role focused on strategic initiatives. Concurrently, Jeremy Cox, currently Senior Vice President, Global Tax and Head of Products and Services Finance, has been appointed as HPE Corporate Controller and Chief Tax Officer, also assuming the Principal Accounting Officer role.
Key Highlights
- 1Jeff T. Ricci resigns as SVP, Controller, and Principal Accounting Officer, effective July 1, 2022, moving to a strategic initiatives role.
- 2Jeremy Cox appointed as HPE Corporate Controller, Chief Tax Officer, and Principal Accounting Officer, effective July 1, 2022.
- 3Jeremy Cox has a long tenure with HPE and its predecessors, serving in various senior tax and finance roles since 2008.
- 4No new compensation arrangements for Jeremy Cox were disclosed at the time of appointment; he will continue with existing compensation and benefits.
- 5Jeremy Cox will be eligible for the Severance and Long-Term Incentive Change in Control Plan for Executive Officers (SPEO) in case of involuntary termination.
- 6John Schultz, EVP, Chief Operating and Legal Officer, received a compensation increase; his target annual incentive rose from 125% to 150% of base salary.
- 7John Schultz was granted restricted stock units (RSUs) and performance-adjusted RSUs with vesting tied to continued service, time, and company performance metrics.
Frequently Asked Questions
Jeff Ricci's departure from the Principal Accounting Officer role is significant as it marks a change in the company's top accounting executive. However, his transition to a strategic initiatives role indicates a planned move rather than an abrupt exit, suggesting continuity in his contributions to the company. The appointment of Jeremy Cox, an internal candidate with extensive experience, aims to ensure a smooth handover.
Jeremy Cox has been with HPE and its predecessor companies since 2008, holding various senior positions within Global Tax and Finance. His most recent role as SVP, Global Tax and Head of Products and Services Finance, demonstrates his deep understanding of the company's financial operations and tax structures. This extensive experience makes him a well-qualified successor for the Corporate Controller and Principal Accounting Officer positions.
For Jeremy Cox, no new compensation arrangements were disclosed at the time of his appointment; he will continue with his current compensation and benefits. He will be eligible for the company's existing severance and change-in-control plan. For John Schultz, his target annual incentive was increased, and he was granted both restricted stock units and performance-adjusted restricted stock units, reflecting expanded responsibilities and retention incentives.
The SPEO is designed to provide transition assistance to executive officers in the event of an involuntary termination without cause. Under this plan, eligible executives may receive severance benefits, including a cash payment, pro-rata annual incentive award, pro-rata vesting of equity awards, and a stipend for health benefit premiums. The cash benefit is a multiple of base salary and average annual incentives, capped at 2.99 times the sum of base salary plus target annual incentive.