8-KLeadership ChangesExhibits & Filings

VALERO ENERGY CORP/TX 8-K Report, Executive Changes (Jan 8, 2013)

Filed January 8, 2013For Securities:VLO

Summary

Valero Energy Corporation (VLO) filed an 8-K on January 8, 2013, reporting amendments to its executive officers' Change of Control Severance Agreements, effective January 7, 2013. The key change is the elimination of the excise tax gross-up benefit previously provided under these agreements. This amendment aligns with a broader trend of companies reducing such executive compensation provisions. While this filing does not involve new financial performance data or strategic initiatives, it is significant for investors interested in executive compensation and corporate governance. The removal of the tax gross-up suggests a focus on cost control and a recalibration of executive severance packages to be more aligned with shareholder interests and evolving regulatory expectations regarding executive pay.

Key Highlights

  • 1Amendments made to executive Change of Control Severance Agreements.
  • 2The primary change is the elimination of the excise tax gross-up benefit.
  • 3These amendments are effective as of January 7, 2013.
  • 4The filing includes the form of amendment as an exhibit.
  • 5Other previously filed Change of Control Agreements are incorporated by reference.
  • 6This action signals a shift in executive compensation strategy regarding potential change of control events.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce and detail amendments to Valero Energy Corporation's executive Change of Control Severance Agreements. Specifically, the amendments remove the excise tax gross-up benefit previously provided to executive officers.

Companies typically remove excise tax gross-ups to reduce costs associated with executive severance packages and to align executive compensation with evolving corporate governance standards and shareholder expectations. It can be seen as a move towards more conservative executive compensation practices.

This specific filing does not directly impact Valero's current financial performance or operational outlook, as it pertains to executive compensation agreements. However, it can signal management's approach to governance and cost management, which may indirectly influence investor perception.

The filing states that the form of the amendment is filed as Exhibit 10.01 and is incorporated by reference. Investors can review this exhibit for the precise language of the changes made to the severance agreements.