Summary
This 8-K filing by Tyco International Ltd. (the Registrant) on April 11, 2007, primarily announces the upcoming retirement of Dr. Juergen Gromer, President and Vice Chairman of Tyco's Electronics business segment, effective December 31, 2007. This retirement will trigger the termination of his employment agreement. Investors should note the financial implications of Dr. Gromer's departure. He is entitled to a lump sum payment equivalent to 24 months of his base salary and target bonus, as stipulated in a release and separation agreement. This payment satisfies Tyco's obligations under a previous retention agreement. Additionally, the separation agreement includes restrictive covenants preventing Dr. Gromer from soliciting Tyco Electronics customers and employees, and from competing with the business for a period extending 24 months beyond his employment term.
Key Highlights
- 1Announcement of Dr. Juergen Gromer's retirement as President and Vice Chairman of Tyco's Electronics business, effective December 31, 2007.
- 2Dr. Gromer's retirement will terminate his existing employment agreement with Tyco International Ltd.
- 3A release and separation agreement has been entered into with Dr. Gromer dated April 10, 2007.
- 4Dr. Gromer will receive a lump sum payment equal to 24 months of base salary and target bonus.
- 5This payment is in satisfaction of obligations under a prior retention agreement.
- 6The separation agreement includes non-solicitation and non-compete clauses for 24 months post-employment.
- 7The filing includes a press release dated April 11, 2007, as an exhibit.