Summary
This Form 8-K filing by PepsiCo, Inc. (PEP) on September 3, 2004, primarily details a material definitive agreement concerning the transition of Mr. Abelardo E. Bru. Mr. Bru will transition from his role as Vice Chairman to retirement on February 1, 2005. Following his retirement, he will serve as a consultant to the company for three years. The agreement outlines terms for his compensation during the consulting period, including a monthly payment and expense reimbursement. It also addresses the treatment of his pension benefits and equity awards, with specific provisions for continued vesting of certain stock options. This arrangement ensures a smooth handover and continued access to Mr. Bru's expertise while safeguarding company interests.
Key Highlights
- 1PepsiCo entered into a material definitive agreement with Vice Chairman Abelardo E. Bru.
- 2Mr. Bru will transition to retirement on February 1, 2005.
- 3Following retirement, Mr. Bru will serve as a consultant for three years.
- 4The consulting agreement includes a monthly payment of $160,000 and reimbursement for reasonable business expenses.
- 5Pension benefits will be calculated under normal plan provisions, including the consulting period for age and service.
- 6Equity awards will be treated according to their terms, with specific provisions for continued vesting of one stock option grant during the consulting period.
- 7The agreement includes mutual releases from legal claims between PepsiCo and Mr. Bru.