8-KLeadership ChangesExhibits & Filings

TransDigm Group INC 8-K Report, Executive Changes (Nov 15, 2016)

Filed November 15, 2016For Securities:TDG

Summary

This 8-K filing by TransDigm Group Inc. (TDG) on November 15, 2016, primarily details amendments to the employment agreements for two key executives: Terrance Paradie (Executive Vice President and Chief Financial Officer) and Bernt Iversen III (Executive Vice President – Mergers & Acquisitions and Business Development). The amendments, effective for fiscal year 2017, increase the target bonus potential for both Mr. Paradie and Mr. Iversen from 65% to 80% of their base salaries. The stated reason for these changes is to better align their total cash compensation with prevailing market conditions. While not a change in base salary, this increase in potential bonus compensation could signal management's focus on performance-based incentives and retention of key personnel.

Key Highlights

  • 1Amendments to employment agreements for CFO Terrance Paradie and EVP Bernt Iversen.
  • 2Target bonus percentage increased from 65% to 80% of base salary for both executives.
  • 3Changes are effective starting fiscal year 2017.
  • 4The stated purpose is to align total cash compensation with market conditions.
  • 5This filing indicates adjustments to executive compensation strategies.
  • 6The specific amendments are filed as exhibits (10.1 and 10.2).

Frequently Asked Questions

The main purpose of this 8-K filing is to report amendments to the employment agreements of two key executives, Terrance Paradie (CFO) and Bernt Iversen (EVP – M&A and Business Development). These amendments adjust their bonus targets.

The target bonus for both Mr. Paradie and Mr. Iversen is increased from 65% of their base salary to 80% of their base salary, effective for the fiscal year 2017.

The company states that the purpose of these amendments is to make the executives' total cash compensation more aligned with market conditions.

No, this filing specifically addresses changes to the *target bonus percentage* as a component of their total compensation, not their base salaries.