8-KMaterial AgreementsExhibits & Filings

WASTE MANAGEMENT INC 8-K Report, Material Agreement (May 12, 2006)

Filed May 12, 2006For Securities:WM

Summary

This 8-K filing by Waste Management, Inc. (WM) primarily details the entry into a material definitive agreement, specifically an employment agreement with Mark A. Weidman, President of its wholly-owned subsidiary, Wheelabrator Technologies Inc. The agreement, effective retroactively from October 30, 2005, outlines a two-year initial term with automatic one-year renewals, a minimum base salary of $290,000, and a target annual bonus of 60% of his base salary, with potential to range from 0% to 120% based on performance. The filing also specifies detailed severance packages in case of termination, particularly in connection with a change in control, and includes restrictive covenants such as non-competition and non-solicitation clauses for two years post-employment.

Key Highlights

  • 1Waste Management, Inc. entered into a material employment agreement with Mark A. Weidman, President of its subsidiary Wheelabrator Technologies Inc., effective October 30, 2005.
  • 2The employment agreement has an initial term of two years, with automatic one-year renewals thereafter.
  • 3Mr. Weidman is to receive a minimum annual base salary of $290,000.
  • 4A target annual bonus of 60% of base salary is stipulated, with potential payouts ranging from 0% to 120% based on performance goals.
  • 5The agreement details severance packages for termination without cause, including two times base salary plus target bonus, and enhanced benefits (three times base salary plus target bonus, extended benefit continuation) in the event of termination without cause or resignation for good reason in connection with a change in control.
  • 6Restrictive covenants include a two-year non-compete and non-solicitation period post-termination of employment.
  • 7The agreement also includes provisions for perquisites such as an automobile allowance, financial planning services, and participation in executive benefit plans.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose Waste Management, Inc.'s entry into a material definitive agreement, specifically an employment contract with Mark A. Weidman, President of its subsidiary, Wheelabrator Technologies Inc.

Mr. Weidman's agreement includes a minimum annual base salary of $290,000 and a target annual bonus of 60% of his base salary, with actual bonuses ranging from 0% to 120% of base salary based on performance. He also receives certain perquisites and is eligible for executive benefit plans.

If terminated without cause, Mr. Weidman is entitled to cash payments equal to two times his base salary and target bonus, continued health and welfare benefits for up to two years, and a pro-rated bonus. In the event of termination without cause or resignation for good reason in connection with a change in control, these benefits are enhanced to three times his base salary and target bonus, with benefits continuing for three years and a full pro-rated maximum bonus.

Yes, Mr. Weidman's agreement includes restrictive covenants that prevent him from competing with the Company or soliciting its customers or employees for a period of two years following the termination of his employment. He is also restricted from disparaging the Company.