8-KLeadership ChangesExhibits & Filings

Johnson Controls International plc 8-K Report, Executive Changes (Oct 13, 2015)

Filed October 13, 2015For Securities:JCI

Summary

This 8-K filing from Johnson Controls International plc (then Tyco International plc) announces a significant CFO transition. Robert E. Olson will join the company as Executive Vice President and Chief Financial Officer, effective upon the filing of the fiscal year 2015 Form 10-K in November 2015. He will initially serve as CFO Designate. This appointment follows Mr. Olson's extensive financial leadership experience at companies like DISH Network, Trane Commercial Systems, and AT&T. Arun Nayar, the current EVP and CFO, will step down from his role to facilitate an orderly succession and will remain in an advisory capacity during the transition. The filing also details Mr. Olson's compensation package, including a base salary, annual incentive target, and substantial long-term equity awards for fiscal year 2016. Additionally, it notes the long-term equity award for CEO George Oliver, which saw a decrease in fair value compared to the prior year. This leadership change signals a strategic move for the company's financial operations.

Key Highlights

  • 1Johnson Controls International plc (then Tyco International plc) announced the appointment of Robert E. Olson as its new Executive Vice President and Chief Financial Officer, effective November 2015.
  • 2Olson, previously EVP and CFO of DISH Network, brings substantial experience in financial leadership to the company.
  • 3Current CFO Arun Nayar will transition to an advisory role to ensure a smooth succession process.
  • 4Mr. Olson's compensation includes an annual base salary of $535,000 and a fiscal year 2016 target annual incentive of $428,000.
  • 5Mr. Olson received significant long-term equity awards for FY2016 valued at $1,300,000, split between stock options, performance share units, and restricted share units.
  • 6CEO George Oliver's FY2016 long-term equity award was valued at $7,000,000, a decrease of $500,000 from the prior year, split between stock options and performance share units.

Frequently Asked Questions

Robert E. Olson has been appointed as the new Executive Vice President and Chief Financial Officer. He will officially assume the role upon the filing of the company's Form 10-K for fiscal year 2015 in November 2015. He will start immediately as Chief Financial Officer Designate.

Mr. Olson will receive an annual base salary of $535,000. He is eligible for annual incentive compensation with a target of $428,000 for fiscal year 2016. He also received long-term equity awards for FY2016 with a grant date fair value of $1,300,000, comprising stock options (40%), performance share units (40%), and restricted share units (20%).

Arun Nayar, the current Executive Vice President and Chief Financial Officer, will step down from his role to facilitate an orderly succession process. He will remain with the company in an advisory capacity during a transition period.

Yes, the filing notes that the grant date fair value of the long-term equity award for CEO George Oliver for fiscal 2016 was $7,000,000, which represents a decrease of $500,000 from the prior year. This award was split equally between stock options and performance share units.