Summary
Republic Services, Inc. (RSG) filed an 8-K on January 7, 2009, reporting an amendment to the executive employment agreement of Donald W. Slager, dated December 31, 2008. The primary driver for this amendment was to ensure compliance with Section 409A of the Internal Revenue Code, which governs nonqualified deferred compensation plans. Key changes include the payment structure for retirement benefits. Previously, Mr. Slager was set to receive annual retirement payments over a 10-year period. The amended agreement mandates that if retirement payments become due, they will now be paid out as a single lump sum within 30 days after the six-month anniversary of his termination of employment. This lump sum calculation will be based on an annual interest rate of 6% and assumes the payments would have commenced at age 55 or upon termination, whichever is later.
Key Highlights
- 1Amendment to Donald W. Slager's executive employment agreement effective December 31, 2008.
- 2The primary purpose of the amendment is to comply with Section 409A of the Internal Revenue Code.
- 3Changes affect the payment terms of potential retirement benefits for Mr. Slager.
- 4Retirement payments will now be made as a single lump sum payment, rather than over a 10-year period.
- 5Lump sum payment to be made within 30 days following the six-month anniversary of Mr. Slager's termination of employment.
- 6The lump sum calculation will use a 6% annual interest rate.
- 7The amendment ensures compliance with tax regulations related to executive compensation.