8-KLeadership ChangesExhibits & Filings

STATE STREET CORP 8-K Report, Executive Changes (Sep 28, 2016)

Filed September 28, 2016For Securities:STTSTT-PG

Summary

State Street Corporation (STT) announced the appointment of Eric Aboaf as Executive Vice President and a member of its Management Committee, effective no later than January 2, 2017. He is slated to assume the role of Chief Financial Officer (CFO) no later than April 1, 2017, succeeding Michael W. Bell. Mr. Aboaf brings significant financial leadership experience, most recently serving as CFO for Citizens Financial Group and previously holding various leadership roles at Citigroup. This executive transition signals a strategic reinforcement of State Street's financial leadership team with seasoned expertise. The appointment comes with a comprehensive compensation package designed to attract Mr. Aboaf and offset potential losses from his prior employer. This includes a base salary of $700,000, significant targeted incentive compensation for 2017 ($1.7 million annual and $3.1 million long-term), a one-time bonus of up to $2.55 million, and substantial sign-on awards totaling $3.66 million, comprising cash, deferred stock, and performance-based restricted stock units. These arrangements underscore the company's commitment to securing key talent for critical financial roles.

Key Highlights

  • 1Appointment of Eric Aboaf as Executive Vice President and Management Committee member, effective by January 2, 2017.
  • 2Eric Aboaf to become Chief Financial Officer (CFO) by April 1, 2017, replacing Michael W. Bell.
  • 3Mr. Aboaf's extensive financial background includes prior roles as CFO at Citizens Financial Group and leadership positions at Citigroup.
  • 4A comprehensive compensation package includes a $700,000 base salary and substantial targeted incentive awards for 2017.
  • 5A one-time bonus of up to $2.55 million is provided to compensate for potential incentive compensation loss from his former employer.
  • 6Significant sign-on awards totaling $3.66 million, including cash and equity (deferred stock and performance-based RSUs), are part of the agreement.
  • 7Mr. Aboaf has agreed to standard restrictive covenants, including non-solicitation and non-competition clauses.

Frequently Asked Questions

Eric Aboaf has been appointed as Executive Vice President and a member of State Street's Management Committee. He is expected to assume the role of Chief Financial Officer (CFO) by April 1, 2017, succeeding Michael W. Bell.

Mr. Aboaf's compensation includes an annualized base salary of $700,000. He is eligible for targeted annual incentive compensation of $1,700,000 and long-term incentive compensation of $3,100,000 for 2017. Additionally, he will receive a one-time bonus of up to $2,550,000 and sign-on awards totaling $3,660,000, which include cash and various forms of equity awards (deferred stock and performance-based RSUs).

The significant one-time bonus and sign-on awards are designed to compensate Mr. Aboaf for the expected loss of incentive compensation and unvested deferred compensation from his previous employer, Citizens Financial Group, and to attract him to the CFO role at State Street.

Mr. Aboaf is expected to join State Street no later than January 2, 2017, and will assume the role of Chief Financial Officer no later than April 1, 2017.