01—Abstract
Summary
Summary of the 8-K filed January 15, 2009. Cited figures are marked; the original filing is the authoritative source.
United Rentals, Inc. (URI) filed an 8-K on January 15, 2009, reporting an amendment to its CEO Michael J.
Kneeland's employment agreement. The amendment, effective retroactively from January 1, 2009, reduces Mr. Kneeland's base salary for 2009 by 20% to $600,000a.
This salary reduction, initiated at Mr. Kneeland's request, is intended to demonstrate leadership by example amidst ongoing cost-saving measures within the company, including employee-requested cost reductions, staff cuts, a moratorium on merit increases, and reduced matching contributions to retirement plans. Importantly, ancillary benefits such as bonus targets and severance pay will continue to reference his pre-amendment salary level.
02—Key points
Key Highlights
- CEO Michael J. Kneeland voluntarily accepted a 20% reduction in his 2009 base salary.
- The CEO's annual base salary for 2009 is now set at $600,000.
- The salary reduction was effective retroactively from January 1, 2009.
- Mr. Kneeland's decision is framed as leading by example during a period of cost-cutting and staff reductions.
- Other cost-saving measures include a moratorium on merit increases and reduced company retirement plan matching.
- Bonus targets and severance pay will still be calculated based on the salary level prior to the amendment.
- The filing includes Exhibit 10.1, the First Amendment to the CEO's employment agreement.
03—Questions
Frequently Asked Questions
Why did the CEO's salary get reduced?
CEO Michael J. Kneeland voluntarily requested and accepted a 20% reduction in his base salary for 2009. This action was intended to demonstrate leadership by example as the company implements significant cost-saving measures and staff reductions.
How much is the CEO's new salary, and when does it take effect?
The CEO's annual base salary for 2009 has been reduced to $600,000. This reduction is effective retroactively from January 1, 2009.
Do other benefits, like bonuses or severance, also reflect the salary reduction?
No, the amendment specifies that ancillary benefits such as bonus targets and severance pay will continue to reference the CEO's base salary level prior to the amendment, if and when they become applicable.
What other cost-saving measures is the company implementing?
The company is also instituting a moratorium on merit increases for salaried employees and reducing its matching contributions to employee retirement plans, in addition to the CEO's salary cut and previous staff reductions.
04—Continue