8-KMaterial Agreements

TRAVELERS COMPANIES, INC. 8-K Report, Material Agreement (Feb 3, 2005)

Filed February 3, 2005For Securities:TRV

Summary

This 8-K filing from The St. Paul Travelers Companies, Inc. reports on a material definitive agreement, specifically a separation agreement with Douglas Elliot, the former Chief Executive Officer of General Commercial and Personal Lines. The agreement, effective February 1, 2005, details the terms of Mr. Elliot's departure, including a significant severance payment and continued benefits. Investors should note the financial implications of this separation, particularly the $5.5 million cash payment, which is approximately three times Mr. Elliot's total annual compensation. The agreement also addresses Mr. Elliot's restricted stock, pension benefits, and continued health and insurance benefits for a limited period. In return, Mr. Elliot has agreed to non-solicitation clauses for employees and customers and has released the company from potential claims.

Key Highlights

  • 1The St. Paul Travelers Companies, Inc. entered into a separation agreement with Douglas Elliot, CEO of General Commercial and Personal Lines.
  • 2Mr. Elliot's separation from the company was effective February 1, 2005.
  • 3The agreement includes a lump sum cash payment of $5.5 million to Mr. Elliot.
  • 4This cash payment is approximately equivalent to three times Mr. Elliot's total annual compensation.
  • 5Mr. Elliot's restricted stock interests will be preserved to the maximum extent possible.
  • 6The company will continue to provide Mr. Elliot with certain health and insurance benefits for up to three years post-separation, contingent on his new employment status.
  • 7Mr. Elliot agreed to a 12-month restriction on soliciting company employees and customers.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report the entry into a material definitive agreement, specifically a separation agreement between The St. Paul Travelers Companies, Inc. and its former executive Douglas Elliot.

The company agreed to a lump sum cash payment of $5.5 million to Mr. Elliot as part of his separation agreement.

Mr. Elliot has agreed to a 12-month restriction on soliciting the company's employees and customers, and he has also provided a customary release of any claims he may have against the company.

Yes, the company will continue to provide Mr. Elliot with certain health and insurance benefits for up to three years after his separation date, unless he becomes employed by a new employer and is eligible for similar benefits from that new employer.