8-KLeadership ChangesExhibits & Filings

NASDAQ, INC. 8-K Report, Executive Changes (Aug 8, 2014)

Filed August 8, 2014For Securities:NDAQ

Summary

This 8-K filing by The NASDAQ OMX Group, Inc. (now Nasdaq, Inc.) reports on the execution of a new five-year employment agreement with Hans-Ole Jochumsen, President of Global Trading and Market Services. The agreement, effective August 5, 2014, outlines Mr. Jochumsen's compensation, including a base salary of at least $600,000, a target annual incentive compensation of at least $1,000,000, and annual equity awards targeted at a minimum of $1,900,000 for 2015-2018. Crucially for investors, the filing details the severance packages and benefits Mr. Jochumsen would receive under various termination scenarios, including termination without cause, for good reason, disability, death, and a "double trigger" scenario related to a change in control. These provisions aim to retain key executive talent while providing defined compensation outcomes in specific circumstances. The agreement also includes a two-year non-solicitation clause.

Key Highlights

  • 1New five-year employment agreement (August 5, 2014 - August 5, 2019) with Hans-Ole Jochumsen, President, Global Trading and Market Services.
  • 2Annual base salary of no less than $600,000.
  • 3Target annual incentive compensation of not less than $1,000,000, contingent on performance goals.
  • 4Annual equity compensation awards targeted at not less than $1,900,000 for calendar years 2015 through 2018.
  • 5Defines severance benefits for various termination scenarios, including 'termination without cause' or 'by the executive for good reason', which includes up to two times prior year's base salary, target bonus, and pro-rata bonus.
  • 6Includes a 'double trigger' severance provision in the event of a change in control coupled with termination without cause or for good reason.
  • 7Contains a two-year post-termination restriction prohibiting Mr. Jochumsen from working for a competing entity.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose the details of a new five-year employment agreement entered into between The NASDAQ OMX Group, Inc. and its President of Global Trading and Market Services, Hans-Ole Jochumsen. It also outlines the compensation, benefits, and termination provisions associated with this agreement.

Mr. Jochumsen's compensation includes an annual base salary of at least $600,000, an annual incentive compensation targeted at no less than $1,000,000 based on performance, and annual equity compensation awards targeted at no less than $1,900,000 for the years 2015 through 2018.

If Mr. Jochumsen's employment is terminated without cause by NASDAQ OMX, or by him for good reason, he is entitled to a cash payment equal to two times his prior year's base salary, the prior year's target bonus, and any pro-rata target bonus for the termination year if performance goals are met. He also receives continued vesting of performance share units and 24 months of COBRA premium coverage.

Yes, the agreement includes a 'double trigger' provision. If a change in control occurs and Mr. Jochumsen's employment is terminated without cause or he resigns for good reason within two years after the change in control, he is entitled to specific severance payments and benefits, including a cash payment and continued health coverage.