Summary
This Form 8-K filing from The Charles Schwab Corporation (SCHW) reports on a material definitive agreement, specifically the terms of a separation agreement with Executive Vice President William L. Atwell, who is retiring from his role as President - Individual Investor. The agreement outlines Mr. Atwell's departure from officer and director roles, with his last day of employment being December 31, 2005. Key financial components of the separation include a lump-sum payment of $975,000, full vesting and exercisability of previously awarded restricted shares (92,000), stock options (250,000), and Long-Term Incentive Plan units (1,450,000). Mr. Atwell is also eligible for his 2005 annual bonus based on performance metrics and his target percentage.
Key Highlights
- 1William L. Atwell, Executive Vice President and President - Individual Investor, is retiring.
- 2Mr. Atwell stepped down as an officer and director effective November 8, 2005, with his last employment day on December 31, 2005.
- 3A lump-sum payment of $975,000 will be made to Mr. Atwell as part of the separation agreement.
- 4Previous equity awards, including 92,000 restricted shares, 250,000 stock options, and 1,450,000 Long-Term Incentive Plan units, will fully vest.
- 5Stock options will remain exercisable for three months after December 31, 2005.
- 6Mr. Atwell is eligible for his 2005 annual bonus, calculated based on performance and a 150% target bonus percentage.
- 7The separation agreement is contingent on Mr. Atwell satisfying certain post-termination obligations, including a release of claims.