Summary
This Form 8-K filing by The Progressive Corporation (PGR) on May 21, 2013, details an amendment to its Executive Separation Allowance Plan. The primary change expands the circumstances under which eligible employees, including named executive officers and other equity-eligible staff, can receive severance payments. Previously, severance was primarily triggered by termination initiated by the company for reasons other than cause, death, disability, or retirement. The amendment now allows employees to receive severance if they resign within a specified period after their job duties have been significantly changed, provided they sign a termination and release agreement. The amendment also revises the definition of "Change in Control" within the plan to align with Section 409A of the Internal Revenue Code, ensuring compliance with tax regulations.
Key Highlights
- 1The Progressive Corporation amended its Executive Separation Allowance Plan on May 16, 2013.
- 2The amendment expands eligibility for severance payments to include employees who resign due to significant changes in their job duties.
- 3Previously, severance was mainly for terminations initiated by the company (excluding cause, retirement, death, disability).
- 4The revised plan still requires an eligible employee to sign a termination and release agreement.
- 5The amendment does not alter the amounts payable under the plan.
- 6The definition of 'Change in Control' in the plan was updated to comply with Section 409A of the Internal Revenue Code.