Summary
This 8-K filing from L3Harris Technologies (then Harris Corporation) on February 14, 2014, details the separation agreement with former Senior Vice President and CFO, Gary L. McArthur. The agreement outlines the terms of his departure, effective February 28, 2014, and includes his continued salary through that date, a lump sum payment of his current annual base salary ($585,000), and other benefits. Investors should note the significant cash payout and the continuation of certain benefits designed to facilitate an orderly transition and compensate Mr. McArthur. The agreement also addresses Mr. McArthur's incentive compensation and equity awards. Notably, he will receive his full fiscal 2014 Annual Incentive Plan target payout ($417,000) and his outstanding restricted stock units will continue to vest as if he had remained employed. These provisions, along with non-compete and non-solicitation clauses, are standard for executive departures and are subject to Mr. McArthur's release of all claims against the company.
Key Highlights
- 1Formal separation agreement executed with former CFO, Gary L. McArthur, effective February 28, 2014.
- 2Mr. McArthur will receive his full annual base salary through the separation date.
- 3A lump sum cash payment of $585,000 (current annual base salary) will be paid to Mr. McArthur.
- 4The company will cover medical, dental, and vision plan premiums for 12 months post-separation.
- 5Mr. McArthur to receive his full fiscal 2014 Annual Incentive Plan target payout of $417,000.
- 6Outstanding restricted stock units will continue to vest as if employment continued.
- 7Agreement includes a release of claims, confidentiality, non-solicitation, and non-competition clauses.