Summary
This Form 8-K filing by Kraft Foods Inc. (prior to its rebranding as Mondelez International) on October 24, 2006, details a material definitive agreement concerning the departure of Mr. David S. Johnson, formerly President, North America Commercial. The agreement outlines the terms of his separation, including compensation, benefits, and post-employment obligations. Investors should note the financial implications of this separation, such as the severance package provided to Mr. Johnson, which includes salary continuation, incentive awards, and a significant lump-sum payment. The agreement also includes non-compete and non-solicitation clauses designed to protect Kraft's interests. The filing's primary purpose is to inform stakeholders about this executive departure and its associated financial and contractual arrangements.
Key Highlights
- 1Kraft Foods Inc. has entered into a Separation Agreement and General Release with Mr. David S. Johnson, former President, North America Commercial.
- 2Mr. Johnson's employment termination date is October 31, 2006.
- 3The separation package includes six months of base salary as a lump sum payment and twelve months of salary continuation.
- 4Mr. Johnson will receive pro-rated 2006 annual incentive and 2004-2006 Long-Term Incentive Plan (LTIP) awards.
- 5A lump sum payment of $1,877,000 is to be paid to Mr. Johnson by October 31, 2006.
- 6Mr. Johnson retains the right to exercise vested stock options for 12 months post-termination but forfeits unvested restricted stock awards.
- 7The agreement includes non-compete and non-solicitation clauses for specific competitors and employees until October 31, 2007.