01—Abstract
Summary
Summary of the 8-K filed October 7, 2020. Cited figures are marked; the original filing is the authoritative source.
Nasdaq, Inc. (NDAQ) has filed an 8-K report detailing a new employment agreement with its Chief Information and Chief Technology Officer, Bradley J.
Peterson, effective October 1, 2020, through December 31, 2023. This agreement replaces his previous contract and outlines a compensation package designed to retain key executive talent. The terms include a base salary of no less than $600,000,a an annual target bonus of at least $900,000, and annual equity awards with a target value of at least $1.8 million, all subject to annual review and potential increases.
This reinforces Nasdaq's commitment to its technology leadership and continuity in critical IT operations. The report also clearly defines severance and termination benefits for Mr. Peterson under various scenarios, including termination without cause, resignation for good reason, retirement, change in control events, death, or permanent disability.
These provisions aim to provide financial security and continued benefits to Mr. Peterson or his estate, while also including standard clauses such as a two-year non-competition period. Investors should note that these arrangements are typical for senior executive retention and reflect the company's strategy to ensure stable leadership in key technological functions.
02—Key points
Key Highlights
- New employment agreement signed with Chief Information and Chief Technology Officer, Bradley J. Peterson, from October 1, 2020, to December 31, 2023.
- Annual base salary guaranteed at a minimum of $600,000, with annual reviews for potential increases.
- Annual target bonus of no less than $900,000, subject to performance goals and annual review.
- Annual equity compensation awards targeted at a minimum value of $1.8 million.
- Detailed severance packages are outlined for various termination scenarios, including termination without cause, resignation for good reason, and change in control events.
- Severance includes continued vesting of equity, COBRA premium offsets, financial and tax services, and executive physicals, with enhanced benefits upon termination following a Change in Control.
- Agreement includes a two-year non-competition clause and standard non-solicitation and non-disparagement provisions.
03—Questions
Frequently Asked Questions
What is the primary purpose of this 8-K filing?
The primary purpose of this 8-K filing is to disclose the details of a new employment agreement between Nasdaq, Inc. and its Chief Information and Chief Technology Officer, Bradley J. Peterson. This agreement outlines his compensation, tenure, and termination provisions.
What are the key components of Mr. Peterson's compensation package?
Mr. Peterson's compensation includes a minimum annual base salary of $600,000, a minimum annual target bonus of $900,000 based on performance, and annual equity incentive awards with a target value of at least $1.8 million. These components are subject to annual review and potential increases.
What severance benefits will Mr. Peterson receive if his employment is terminated under specific circumstances?
If terminated by the Company without 'Cause' or by Mr. Peterson for 'Good Reason' (not related to a 'Change in Control'), he is entitled to a pro-rata bonus, continued vesting of equity, COBRA premium offset, and financial/tax services. In the event of termination without cause or for good reason within 24 months of a 'Change in Control', he receives a more significant severance package, including a lump sum payment equal to two times his prior year's base salary plus target bonus.
Are there any restrictions or obligations for Mr. Peterson after termination?
Yes, the agreement includes a non-competition provision for two years following the date of termination, regardless of the reason. It also contains customary provisions regarding non-solicitation and non-disparagement.
04—Continue