8-KMaterial AgreementsExhibits & Filings

SOUTHERN CO 8-K Report, Material Agreement (Dec 23, 2004)

Filed December 23, 2004For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

This 8-K filing from The Southern Company (SO) reports on a material definitive agreement entered into by its wholly-owned subsidiary, Southern Nuclear Operating Company, Inc. The primary focus is the formalization of an employment agreement with William G. Hairston, III, continuing his role as Chairman of Southern Nuclear. This agreement outlines his monthly salary and benefits, and includes standard confidentiality clauses. Additionally, Mr. Hairston entered into a Release and Restrictive Covenant Agreement. This agreement involves a significant lump-sum payment of approximately $1.3 million to Mr. Hairston in exchange for releasing Southern Company and its subsidiaries from any claims related to his prior service. He has also agreed to adhere to confidentiality and non-competition provisions post-employment. Investors should note these arrangements clarify executive terms and mitigate potential future disputes, though the financial impact beyond the stated payment is tied to ongoing employment terms.

Key Highlights

  • 1Southern Nuclear Operating Company, Inc. (a Southern Company subsidiary) entered into an employment agreement with William G. Hairston, III.
  • 2Mr. Hairston will continue as Chairman of Southern Nuclear, a position he assumed in September 2004.
  • 3The Employment Agreement has a termination date of July 1, 2005, unless terminated earlier.
  • 4Mr. Hairston's base salary under the agreement is approximately $40,000 per month, plus standard benefits.
  • 5A separate Release and Restrictive Covenant Agreement was also executed.
  • 6Mr. Hairston will receive a lump-sum payment of approximately $1.3 million under the Release agreement.
  • 7The Release includes Mr. Hairston waiving claims against Southern Company and agreeing to confidentiality and non-competition terms.

Frequently Asked Questions

This 8-K filing announces the entry into material definitive agreements by Southern Nuclear Operating Company, Inc., a subsidiary of The Southern Company. Specifically, it concerns an employment agreement for William G. Hairston, III, and a related release and restrictive covenant agreement.

Under the new agreement, Mr. Hairston will continue as Chairman of Southern Nuclear. He will receive a base salary of approximately $40,000 per month and is eligible for benefits provided to similarly situated employees. The agreement is set to terminate on July 1, 2005, unless terminated earlier by either party.

This agreement involves a payment of approximately $1.3 million to Mr. Hairston. In return, he releases Southern Company and its subsidiaries from any claims related to his past service and agrees to comply with confidentiality and non-competition provisions following his employment termination.

The filing formalizes Mr. Hairston's role as Chairman and outlines terms for his continued employment and a subsequent release. While it specifies terms and payment for past service, it doesn't explicitly signal an immediate executive transition beyond the defined employment period ending July 1, 2005, or a change in his current role.