Summary
This Form 8-K filing from McKesson Corporation (MCK), filed on April 30, 2006, relates to the compensation and employment agreement for Laureen E. Seeger, Executive Vice President, General Counsel and Secretary, effective April 25, 2006. The filing details her approved annual base salary, target bonus under the Management Incentive Plan (MIP) for fiscal year 2007, and a nonqualified stock option grant. It also outlines adjustments to her Long Term Incentive Plan award and her eligibility for the Company's Executive Severance Policy, Executive Medical Plan, and Executive Survivor Benefit Plan, along with a standard Indemnification Agreement.
Key Highlights
- 1Executive compensation details for Laureen E. Seeger, EVP, General Counsel & Secretary, were approved on April 25, 2006.
- 2Ms. Seeger's annual base salary is set at $425,000.
- 3Her target award under the Management Incentive Plan (MIP) for FY 2007 is $318,750, with actual payout dependent on performance.
- 4A nonqualified stock option to purchase 50,000 shares of McKesson common stock was granted at an exercise price of $49 per share, with vesting over four years.
- 5Her Long Term Incentive Plan target award was increased to $250,000 for the fiscal years 2006-2008, based on cumulative earnings per share.
- 6Ms. Seeger is covered by the Executive Severance Policy, providing benefits in case of termination other than for cause, outside of a change-in-control period.
- 7She will also enter into a standard Termination Agreement for specific severance benefits in the event of a change in control.
Frequently Asked Questions
The main purpose of this 8-K filing is to disclose material changes in McKesson Corporation's executive compensation arrangements, specifically for Laureen E. Seeger, its Executive Vice President, General Counsel and Secretary.
Ms. Seeger's compensation package includes an annual base salary of $425,000, a target bonus under the Management Incentive Plan (MIP) of $318,750 for FY 2007, a grant of 50,000 stock options at an exercise price of $49, an increased Long Term Incentive Plan target award of $250,000 for FY 2006-2008, and coverage under severance, medical, and survivor benefit plans.
Ms. Seeger was granted a nonqualified option to purchase 50,000 shares of McKesson common stock at an exercise price of $49 per share. The options vest over a four-year period, with 50% vesting after two years, 25% in the following year, and the remaining 25% in the fourth year.
Ms. Seeger is eligible for the Company's Executive Severance Policy, which provides 12 months of base salary plus one month per year of service (up to 24 months) if terminated without cause, outside of a change-in-control scenario. She will also have a standard Termination Agreement for specific severance payments (up to 2.99 times her base amount) if terminated by the Company without cause or for good reason within two years following a change in control.