Summary
This 8-K filing from Seagate Technology Holdings plc (STX) reports on the final determination and payment of severance benefits to Dr. C.S. Park, former Chairman and CEO of Maxtor Corporation, following the consummation of the merger between Seagate and Maxtor on May 19, 2006. Dr. Park's termination of employment as CEO of Maxtor occurred under circumstances entitling him to severance under Maxtor's Executive Retention and Severance Plan. The filing clarifies the final payout amount, which includes basic severance, supplemental severance, a pro-rated bonus, and a lump-sum payment in lieu of continued benefits. It also confirms Dr. Park's entitlement to a "gross-up" payment to cover potential excise taxes on excess parachute payments. Investors should note the total estimated severance payout to Dr. Park is approximately $6.165 million. This figure comprises a cash severance payment of $4,466,575.34, a payment of $78,405.00 in lieu of benefits continuation, and an approximate "gross-up" payment of $1,620,000 for taxes. This filing provides a definitive update on the financial implications of Dr. Park's post-merger separation, as previously outlined in the company's Form S-4.
Key Highlights
- 1Seagate Technology Holdings plc has finalized severance payments to Dr. C.S. Park, former Maxtor CEO.
- 2Dr. Park's employment termination occurred under conditions triggering severance benefits as per Maxtor's Executive Severance Plan.
- 3Total cash severance and bonus payment to Dr. Park amounts to $4,466,575.34.
- 4A lump-sum payment of $78,405.00 will be made in lieu of continued health, life insurance, and disability benefits.
- 5Dr. Park is entitled to an approximate "gross-up" payment of $1,620,000 to cover excise taxes on "excess parachute payments".
- 6The total estimated severance payout to Dr. Park is approximately $6,165,000.
- 7These payments were made or are scheduled to be made in December 2006.