Summary
This 8-K filing from Valero Energy Corporation (VLO) details a compensation arrangement related to the retirement of its Executive Vice President and Chief Operating Officer, Richard J. Marcogliese. The arrangement outlines the terms of his separation, including his participation in the 2010 bonus plan and a specific separation payment. It also details the vesting of his restricted stock, stock options, and performance shares, as well as his eligibility for the company's retiree medical plan and adjustments to his Supplemental Executive Retirement Plan benefits. For investors, this filing primarily concerns executive compensation and transition within senior leadership. The agreement clarifies how outstanding equity awards will be handled upon Mr. Marcogliese's departure, which is a standard practice for executive retirements. The company is ensuring a smooth transition while adhering to previously established compensation structures and retirement benefits, providing clarity on the financial implications of this executive change.
Key Highlights
- 1Richard J. Marcogliese, Executive Vice President and Chief Operating Officer, will retire at the end of the year (December 31, 2010).
- 2Mr. Marcogliese resigned from all officer and director positions effective November 22, 2010.
- 3A compensation agreement was finalized on November 22, 2010, in connection with his retirement.
- 4Mr. Marcogliese will receive a separation payment of $971,900 (less applicable deductions).
- 5All outstanding restricted stock grants to Mr. Marcogliese will have their vesting accelerated.
- 6Outstanding stock options will remain subject to original vesting and exercise timelines.
- 7Performance shares scheduled to vest in January 2011 will vest as agreed; those vesting later will be forfeited.
- 8Mr. Marcogliese will receive additional retirement benefit points for Valero's Supplemental Executive Retirement Plan and will participate in the retiree medical plan.