8-KLeadership Changes

Seagate Technology Holdings plc 8-K Report, Executive Changes (Jul 9, 2009)

Filed July 9, 2009For Securities:STX

Summary

This Form 8-K filing from Seagate Technology Holdings plc (STX) on July 9, 2009, primarily concerns the separation of employment for Brian S. Dexheimer, former Division President. Mr. Dexheimer's employment officially ended on July 3, 2009, the last day of the company's fiscal year. The filing details the separation agreement, including severance payments and other benefits consistent with the company's executive officer severance plan. Investors should note the total financial commitment for Mr. Dexheimer's separation, which includes a substantial lump sum cash payment. The agreement also contains provisions such as a non-solicitation clause, designed to protect Seagate's interests. While this filing doesn't report on operational or financial performance, it provides transparency regarding executive departures and associated costs.

Key Highlights

  • 1Brian S. Dexheimer, former Division President, officially ceased employment with Seagate on July 3, 2009.
  • 2Seagate and Mr. Dexheimer entered into a Separation of Employment and Release Agreement.
  • 3Mr. Dexheimer will receive a lump sum cash payment of $2,332,887, representing 18 months of his annual salary and 1.5 times his target annual bonus.
  • 4An additional $29,944 payment will be made to help defray costs for continued health insurance (COBRA) and outplacement assistance for one year.
  • 5These separation benefits were calculated using Mr. Dexheimer's fiscal year 2009 annual salary rate prior to a 25% reduction.
  • 6The agreement includes a one-year non-solicitation clause, preventing Mr. Dexheimer from soliciting Seagate employees or contractors.
  • 7The payments are contingent upon Mr. Dexheimer adhering to the terms of the Separation Agreement.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report the official separation of employment for Brian S. Dexheimer, former Division President, and to disclose the terms of his separation agreement, including severance payments.

Seagate will pay Mr. Dexheimer a total of $2,362,831 ($2,332,887 as severance plus $29,944 for COBRA and outplacement costs). The severance portion is calculated based on 18 months of his annual salary and 1.5 times his target annual bonus.

Yes, the separation agreement includes a non-solicitation clause that prohibits Mr. Dexheimer from soliciting Seagate employees or contracted consultants for alternative employment for a period of one year from the date of the agreement.

The separation benefits were calculated using Mr. Dexheimer's annual salary rate for the 2009 fiscal year as it was in effect prior to a 25% reduction that became effective on February 2, 2009. This calculation is consistent with the company's executive officer severance plan and general policy for employees terminated during FY2009.