What is the main purpose of this 8-K filing?

This 8-K filing announces a planned leadership transition in Quanta Services, Inc.'s finance department. Specifically, it details the change in Chief Financial Officer from James H. Haddox to Derrick A. Jensen, and outlines the terms of their new employment agreements.

When do these executive changes become effective?

The changes are effective as of May 17, 2012, following the company's annual meeting of stockholders.

What are the new roles and compensation details for the executives?

James H. Haddox will move from CFO to Executive Vice President, with a phased base salary ($540,193 and then $270,096) and accelerated restricted stock vesting. Derrick A. Jensen will become CFO and Principal Accounting Officer, earning an annual base salary of $420,000 and receiving a $200,000 restricted stock award.

What kind of severance benefits are offered to Mr. Haddox and Mr. Jensen?

Both executives are eligible for severance payments. Termination without "cause" generally provides for two years of base salary. Severance is enhanced significantly in the event of a "change in control," potentially including three times base salary plus bonus, and continued benefits for three years. Specific terms depend on the reason for termination.

PWR 8-K: Leadership Changes & Regulation FD

Summary

Quanta Services, Inc. (PWR) has filed an 8-K report detailing a significant transition in its senior finance leadership. Effective May 17, 2012, James H. Haddox will step down as Chief Financial Officer (CFO) to assume the role of Executive Vice President. Concurrently, Derrick A. Jensen will be appointed as the new CFO, also continuing his role as Principal Accounting Officer. This leadership change signals a planned succession and internal promotion, with Mr. Jensen, previously Senior Vice President of Finance and Administration, moving into the top financial role. The report also includes details of new employment agreements for both Mr. Haddox and Mr. Jensen, outlining their roles, compensation, and severance provisions. These agreements, effective May 17, 2012, supersede previous arrangements and include specific terms regarding base salaries, vesting of restricted stock for Mr. Haddox, and a new restricted stock award for Mr. Jensen. The company has also detailed severance packages for various termination scenarios, including "cause," disability, and in the event of a "change in control," along with non-competition and non-solicitation clauses.

Key Highlights

1James H. Haddox is transitioning from CFO to Executive Vice President, effective May 17, 2012.
2Derrick A. Jensen, previously Senior Vice President – Finance and Administration, is appointed as the new Chief Financial Officer (CFO) and Principal Accounting Officer, effective May 17, 2012.
3The company has entered into new employment agreements with both Mr. Haddox and Mr. Jensen, effective May 17, 2012.
4Mr. Haddox's new role includes a two-tiered base salary structure ($540,193 for the initial term, $270,096 for the transition term) and full vesting of outstanding restricted stock by March 31, 2014, under certain conditions.
5Mr. Jensen's new employment agreement includes an annual base salary of $420,000 and a restricted stock award valued at $200,000, to be granted on May 17, 2012.
6Both agreements detail comprehensive severance packages for termination due to disability, without cause, or following a change in control.
7Standard non-competition, non-solicitation, and confidentiality covenants are included in both executives' new employment agreements.

QUANTA SERVICES, INC. 8-K Report, Executive Changes (Apr 2, 2012)

Summary

Key Highlights

Frequently Asked Questions