Summary
Marsh & McLennan Companies, Inc. (MMC) filed an 8-K on May 23, 2005, detailing several key executive compensation and stock plan updates. Notably, the Compensation Committee approved a new form of restricted stock award under the 2000 Senior Executive Incentive and Stock Award Plan, and stockholders approved amendments to various stock award plans. These amendments specifically allow for a one-time voluntary exchange of certain outstanding stock options for new options with fewer shares, while prohibiting future exchanges without further stockholder approval. Furthermore, the company announced a new compensation arrangement for its Chairman of the Board, Robert F. Erburu, granting him an additional $100,000 annually for his expanded responsibilities. These announcements provide insight into how MMC is managing its executive compensation and equity-based incentives in the specified period.
Key Highlights
- 1Approval of a new form of restricted stock award under the MMC 2000 Senior Executive Incentive and Stock Award Plan.
- 2Stockholder approval of amendments to multiple stock award plans (2000 Senior Executive, 2000 Employee, 1997 Senior Executive, 1997 Employee).
- 3Amendments permit a one-time voluntary exchange of certain outstanding stock options for new options covering fewer shares.
- 4Future exchanges of outstanding stock options will require stockholder approval.
- 5New annual compensation of $100,000 approved for Chairman of the Board, Robert F. Erburu, effective March 16, 2005.
- 6The compensation is in recognition of Mr. Erburu's additional responsibilities as non-executive Chairman.