Summary
Moody's Corporation (MCO) announced a significant leadership change in its finance department through an 8-K filing on July 31, 2018. The company has appointed Mark Kaye as its new Senior Vice President and Chief Financial Officer (CFO), effective August 20, 2018. Mr. Kaye brings a wealth of experience from previous senior financial roles at Massachusetts Mutual Life Insurance Company and Voya Financial, demonstrating a strong background in financial planning, analysis, and executive leadership within large financial institutions. This appointment marks a transition from the acting principal financial officer, Jeffrey Hare. Investors should note the comprehensive compensation package offered to Mr. Kaye, including a substantial base salary, guaranteed bonus for 2018, a sign-on bonus, and significant equity awards in the form of restricted stock units and performance shares. These arrangements reflect the company's investment in experienced financial leadership and aim to align Mr. Kaye's incentives with long-term shareholder value.
Key Highlights
- 1Appointment of Mark Kaye as Senior Vice President and Chief Financial Officer, effective August 20, 2018.
- 2Mr. Kaye's extensive prior experience includes CFO roles at MassMutual U.S. and Senior Vice President roles at Voya Financial.
- 3Mr. Kaye's initial annual base salary will be $525,000, with a target bonus of $625,000, guaranteed for 2018.
- 4A sign-on payment of $150,000 (net of taxes) is included in his compensation.
- 5Mr. Kaye will receive substantial equity awards: a $1.2 million new hire award in RSUs vesting over two years and a $1.15 million long-term incentive award (60% performance shares, 20% stock options, 20% RSUs) in October 2018.
- 6Mr. Kaye will be covered under the Moody's Change in Control Severance Plan and Career Transition Plan.
- 7The press release announcing the appointment is included as an exhibit.