Summary
TE Connectivity Ltd. (TEL) filed an 8-K on December 20, 2013, to report on actions taken to comply with a new Swiss ordinance on executive compensation, known as the "Ordinance Against Excessive Compensation." Effective January 1, 2014, this ordinance restricts certain payments to executive officers unless those compensation rights are part of employment agreements in place before December 31, 2013. In response, TEL executed written employment agreements with its named executive officers on December 20, 2013. These agreements, which memorialize existing terms and conditions without change, are designed to ensure the continued participation of these officers in the TE Connectivity Severance Plan for U.S. Officers and Executives and the TE Connectivity Change in Control Severance Plan for Certain U.S. Officers and Executives through December 31, 2015. The new agreements do not contain automatic renewal features and expire on December 31, 2015.
Key Highlights
- 1TE Connectivity entered into new employment agreements with named executive officers to comply with a new Swiss compensation ordinance.
- 2The agreements ensure continued participation in U.S. severance and change-in-control plans for executives.
- 3New agreements are effective immediately (December 20, 2013) and expire on December 31, 2015, with no automatic renewal.
- 4The action is a proactive measure to adhere to the "Ordinance Against Excessive Compensation" which takes effect January 1, 2014.
- 5Existing terms and conditions of employment were memorialized without modification in the new agreements.
- 6The filing lists specific employment agreements for key executives (Thomas J. Lynch, Robert W. Hau, Terrence R. Curtin, Joseph B. Donahue, Robert N. Shaddock) as exhibits.