Summary
This 8-K filing from Thermo Fisher Scientific Inc. (then Thermo Electron Corporation) on November 18, 2005, reports a material definitive agreement concerning the employment of its Chief Executive Officer, Marijn E. Dekkers. The Compensation Committee approved an amendment to Mr. Dekkers' existing employment agreement, specifically addressing severance payments. The amendment ensures that any severance pay will be provided in a lump sum within 30 days of termination of employment, aligning with proposed IRS regulations under Section 409A of the Internal Revenue Code.
Key Highlights
- 1Amendment to CEO's employment agreement approved by the Compensation Committee.
- 2Agreement pertains to severance pay for CEO Marijn E. Dekkers.
- 3Severance payments will be made in a lump sum within 30 days of termination.
- 4The amendment is made to comply with proposed IRS regulations under Section 409A.
- 5The agreement was entered into on November 17, 2005.
Frequently Asked Questions
The main purpose is to report a material definitive agreement, specifically an amendment to the CEO's employment contract regarding severance payments, to ensure compliance with upcoming IRS regulations (Section 409A).
The agreement directly affects the Chief Executive Officer, Marijn E. Dekkers, and Thermo Electron Corporation (now Thermo Fisher Scientific Inc.).
The change mandates that any severance pay due to Mr. Dekkers will be delivered as a lump sum within 30 days of his employment termination.
The amendment was necessary to ensure the company's compliance with proposed regulations issued by the Internal Revenue Service (IRS) and the Treasury Department under Section 409A of the Internal Revenue Code, which governs nonqualified deferred compensation.