8-KLeadership ChangesExhibits & Filings

WASTE MANAGEMENT INC 8-K Report, Executive Changes (Jun 14, 2011)

Filed June 14, 2011For Securities:WM

Summary

Waste Management, Inc. (WM) filed an 8-K on June 13, 2011, to announce a key executive leadership change. James E. Trevathan has been appointed to the newly created position of Executive Vice President — Growth, Innovation and Field Support. This promotion is accompanied by a significant stock option award under the Company’s 2009 Stock Incentive Plan, incentivizing Mr. Trevathan's continued contribution to the company's strategic objectives. This appointment and equity grant signal a focus on driving future growth and innovation within WM's operational segments. Investors should note the specific terms of the stock option award, including its vesting schedule, exercise price based on fair market value at grant, and provisions for various termination scenarios. The details are consistent with the company's standard award agreement practices.

Key Highlights

  • 1James E. Trevathan appointed Executive Vice President — Growth, Innovation and Field Support.
  • 2New role emphasizes company growth, innovation, and operational support.
  • 3Mr. Trevathan will receive a stock option award for up to 150,000 shares.
  • 4The stock option award is granted under the Company’s 2009 Stock Incentive Plan.
  • 5Grant date for the award is scheduled for July 5, 2011, based on fair market value.
  • 6The award vests over three years (25% annually for the first two years, 50% in the third year).
  • 7The award agreement includes provisions for vesting and exercise upon various termination events, including death, disability, retirement, change in control, and termination for cause.

Frequently Asked Questions

This 8-K filing announces a significant executive appointment and associated compensation arrangement for James E. Trevathan, who has been named Executive Vice President — Growth, Innovation and Field Support. It also details the terms of a stock option award granted to him.

Mr. Trevathan is being granted a stock option award under the Company’s 2009 Stock Incentive Plan. This award allows him to purchase up to 150,000 shares of Waste Management's common stock, with the exercise price set at the fair market value on the date of the grant (July 5, 2011).

The stock options will vest over a three-year period: 25% will vest on the first anniversary of the grant date, another 25% on the second anniversary, and the remaining 50% will vest on the third anniversary.

The options have specific provisions for different termination scenarios. In case of death or disability, all options immediately vest and remain exercisable for one year (but not beyond the original 10-year term). Qualifying retirement allows for continued vesting and exercisability for three years. If employment is terminated involuntarily without cause, vested options are exercisable for 90 days. However, options are forfeited if employment is terminated for cause.