Summary
Philip Morris International Inc. (PM) filed an 8-K on July 27, 2015, to report on the departure of Matteo Pellegrini, former President of the Asia Region. Mr. Pellegrini elected early retirement effective September 30, 2015, and had already resigned from his officer position on July 1, 2015. This filing details the terms of his Early Retirement Agreement and Release, which are important for understanding executive compensation and transitional arrangements. The agreement outlines Mr. Pellegrini's compensation arrangements through his retirement date, including pro-rated incentive compensation and a pension enhancement. Importantly, investors should note that while he will not receive new equity awards for his 2015 service, his previously granted deferred stock will vest according to the agreement. The filing also confirms the inclusion of the full Early Retirement Agreement as an exhibit.
Key Highlights
- 1Matteo Pellegrini, former President of Asia Region, is retiring early effective September 30, 2015.
- 2Mr. Pellegrini resigned from his officer position on July 1, 2015.
- 3An Early Retirement Agreement and Release was executed on July 23, 2015.
- 4Mr. Pellegrini will receive incentive compensation pro-rated through September 30, 2015, payable in February 2016.
- 5A pension enhancement totaling CHF 2,721,476 (approximately $2.84 million) will be paid.
- 6Mr. Pellegrini will not receive equity awards for 2015 service, but existing deferred stock will vest as agreed.
- 7The full Early Retirement Agreement is filed as an exhibit to the 8-K.