Summary
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 $600,000. 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.
Key Highlights
- 1CEO Michael J. Kneeland voluntarily accepted a 20% reduction in his 2009 base salary.
- 2The CEO's annual base salary for 2009 is now set at $600,000.
- 3The salary reduction was effective retroactively from January 1, 2009.
- 4Mr. Kneeland's decision is framed as leading by example during a period of cost-cutting and staff reductions.
- 5Other cost-saving measures include a moratorium on merit increases and reduced company retirement plan matching.
- 6Bonus targets and severance pay will still be calculated based on the salary level prior to the amendment.
- 7The filing includes Exhibit 10.1, the First Amendment to the CEO's employment agreement.