Summary
This 8-K filing from Realty Income Corp (O) on January 6, 2010, reports on the execution of amended and restated employment agreements for its key executive officers, including the CEO, President, CFO, and other senior Vice Presidents. These new agreements supersede prior ones from October 2008 and establish indefinite terms of employment, providing a framework for the company's leadership stability. The filing outlines the base salaries for these executives, which are set at not less than $550,000 for the CEO, $400,000 for the President, and ranges down to $220,000 for an EVP. Bonuses remain discretionary, contingent on continued employment at the time of payment.
Key Highlights
- 1Realty Income Corp (O) entered into amended and restated employment agreements with five key executives on January 5, 2010.
- 2The agreements have indefinite terms, continuing until terminated by either party according to specified conditions.
- 3Minimum annual base salaries are established for each executive, ranging from $550,000 for the CEO to $220,000 for an EVP.
- 4Annual bonuses are discretionary and conditional upon the executive's employment status on the payment date.
- 5Severance packages are defined for termination without cause or constructive termination, varying based on whether a change in control has occurred within a specific timeframe.
- 6Executives are entitled to 12 months' base salary plus average prior bonuses if terminated without cause or constructively terminated more than 12 months before a change in control.
- 7Severance increases to 18 months' base salary plus average prior bonuses if termination occurs on or within 12 months after a change in control.
Frequently Asked Questions
The primary purpose of this filing is to announce that Realty Income Corporation has entered into amended and restated employment agreements with its top five executive officers. These agreements outline their compensation, terms of employment, and severance provisions.
The amended and restated employment agreements have an indefinite term. This means they will continue until either the executive or the Company terminates the employment according to the terms specified within the agreement.
If terminated without 'cause' or due to 'constructive termination,' executives are eligible for severance. This includes a lump-sum cash payment equal to twelve months of their current base salary plus the average of their last three years' cash bonuses (excluding commissions), and twelve months of continued group medical insurance coverage at the Company's expense. This applies if the termination occurs more than twelve months prior to a 'change in control.' If the termination occurs on or within twelve months after a 'change in control,' the severance package increases to eighteen months of base salary plus average prior bonuses, and eighteen months of continued medical coverage.
No, annual bonuses are not guaranteed. The filing states that any annual bonus payable will be solely at the discretion of the Company and is conditioned upon the executive being employed by the Company through the date the bonus is paid.