Summary
This 8-K filing from Alcoa Inc. (which is the registrant, not Howmet Aerospace Inc. as requested in the prompt, though Howmet was a former subsidiary of Alcoa) on November 29, 2004, primarily reports on a material definitive agreement. The agreement concerns the departure and transition of William E. Leahey, Jr., formerly Executive Vice President and Group President of Alcoa's Packaging, Consumer, Construction, and Distribution Group. Key terms include Mr. Leahey providing transitional services until December 31, 2004, followed by a period of inactive status until May 31, 2005. He will receive a lump sum severance payment of $289,230 and is eligible for his 2004 incentive award. Post-retirement, commencing June 1, 2005, Alcoa will make twelve monthly payments of $39,167 to Mr. Leahey as consideration for limitations on future competitive activities. This agreement also includes standard clauses regarding confidentiality and a release of claims.
Key Highlights
- 1Alcoa Inc. entered into a material definitive agreement with William E. Leahey, Jr., an Executive Vice President.
- 2Mr. Leahey will provide transitional services through December 31, 2004.
- 3Following the transition, Mr. Leahey will be on inactive status until May 31, 2005, receiving benefits.
- 4Severance benefits totaling $289,230 are payable to Mr. Leahey on June 1, 2005.
- 5Mr. Leahey is eligible for a 2004 incentive compensation award.
- 6Post-retirement, Alcoa will pay Mr. Leahey $39,167 per month for twelve months as consideration for non-compete provisions.
- 7The agreement includes clauses on confidentiality and release of claims.