UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 6, 2016
CEB Inc.
(Exact name of registrant as specified in its charter)
Delaware |
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001-34849 |
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52-2056410 |
(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
1919 North Lynn Street, Arlington, Virginia |
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22209 |
(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: (571) 303-3000
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On October 6, 2016, CEB Inc. (“CEB”) entered into letter agreements with Melody L. Jones, CEB’s Chief Administrative Officer, and Richard S. Lindahl, CEB’s Chief Financial Officer. CEB’s Chief Executive Officer, Thomas L. Monahan III, will step down from that role when a new Chief Executive Officer commences employment, as provided in the Transition Agreement between Mr. Monahan and CEB dated August 30, 2016. The letter agreements are intended to incentivize Ms. Jones and Mr. Lindahl to remain employed with CEB for at least a minimum period of time following the appointment of a new Chief Executive Officer.
Ms. Jones has provided critical assistance with the transition planning for Mr. Monahan’s forthcoming departure, and will play a key role in assisting the new Chief Executive Officer transition into his or her role, as well as ensuring continuity of support for key governance matters with the Board of Directors. Ms. Jones has agreed to remain employed with CEB for a transition period through the later of December 31, 2017 or the end of the second calendar quarter following a new CEO’s commencement of employment. Her letter agreement includes the following key provisions:
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She will be eligible to receive a base salary increase effective April 1, 2017, a 2016 bonus determined in the normal course, and a standard annual equity incentive grant in March 2017. |
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Her annual bonus for 2017 will be no less than 100% of her target bonus and, if the transition period continues into 2018, she will be eligible to receive a prorated annual bonus for 2018 based on no less than 100% of her target bonus. |
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Ms. Jones, who has been with CEB since 2005, will vest in all of her outstanding CEB equity awards upon her termination of employment pursuant to the retirement provisions of CEB’s 2012 Stock Incentive Plan. |
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Following her termination, Ms. Jones will be eligible for coverage under CEB’s Retiree Medical Policy as currently in effect. |
Mr. Lindahl’s continued services will be critical for ensuring consistency of communication with the Board of Directors and capital markets participants and assisting with transition matters for the new Chief Executive Officer. Mr. Lindahl has agreed to remain employed with CEB for a transition period through the later of December 31, 2017 or the end of the second calendar quarter following when the new CEO commences employment. Pursuant to his letter agreement, he will be eligible to receive a base salary increase effective April 1, 2017, a 2016 bonus determined in the normal course, and a standard annual equity incentive grant in March 2017. In addition, his annual bonus for 2017 will be no less than 100% of his target bonus and, if the transition period continues into 2018, he will be eligible to receive a prorated annual bonus for 2018 based on no less than 100% of his target bonus.
The foregoing description of the letter agreements does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the letter agreements, copies of which are attached hereto as Exhibits 10.1 and 10.2 and incorporated herein by reference.
Item 9.01. Exhibits.
(d) Exhibits
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Exhibit No. |
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Description |
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10.1 |
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Letter Agreement between CEB and Melody L. Jones, dated September 30, 2016. |
10.2 |
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Letter Agreement between CEB and Richard S. Lindahl, dated September 30, 2016. |
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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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CEB Inc. |
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(Registrant) |
Date: October 7, 2016 |
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By: |
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/s/ Richard S. Lindahl |
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Richard S. Lindahl |
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Chief Financial Officer |
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Exhibit No. |
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Description |
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10.1 |
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Letter Agreement between CEB and Melody L. Jones, dated September 30, 2016. |
10.2 |
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Letter Agreement between CEB and Richard S. Lindahl, dated September 30, 2016. |
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Exhibit 10.1
1919 North Lynn Street Arlington, VA 22209 United States Tel: +1-571-303-3000 Fax: +1-571-303-3100 |
September 30, 2016
Ms. Melody L. Jones
Chief Administrative Officer
CEB Inc.
Dear Melody:
In recognition of more than a decade of loyal service and contributions to CEB Inc. (“CEB” or the “Company”), for the assistance you provided with transition planning for the Company’s current CEO, and for your forthcoming role in assisting our new Chief Executive Officer transition into his or her role as well as ensuring continuity of support for key governance matters with our Board of Directors, CEB will provide you the following payments and benefits. For purposes hereof, the “Transition Period” commences on the date of this letter and continues until December 31, 2017 or, if later, the end of the second calendar quarter following when the new CEO commences employment (the “Transition Period”).
1.Compensation. You will be eligible to receive an increase in your base salary effective April 1, 2017, and you will be eligible to receive a cash bonus for the 2016 performance year no later than March 15, 2017, subject to your performance against the applicable objectives as determined pursuant to standard CEB practice. You will also be eligible to receive a restricted stock unit (RSU) grant in March 2017 in accordance with standard procedures.
2.Performance Bonuses. Your annual bonus for the 2017 performance year shall be no less than 100% of your target bonus. Your target bonus, for the avoidance of doubt, is 100% of your base salary. If the Transition Period continues into the 2018 performance year, your annual bonus for that performance year shall be no less than 100% of your target bonus on a prorated basis for any calendar quarters in 2018 that are included in the Transition Period. These payments are subject to your continued employment through December 31, 2017 (for the 2017 bonus) or the end of the applicable calendar quarter (for the 2018 bonus); provided that if the Company terminates your employment without Cause, you resign for Good Reason, or you die while an employee, you (or as applicable, your estate) shall receive such guaranteed minimum bonus payments subject to your execution of the Company’s standard form separation agreement and release (which will incorporate your Employer Protection Agreement and apply its restrictions as if you had voluntarily resigned). For purposes hereof:
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“Cause” means your commission of a material act of fraud, theft or dishonesty against CEB; conviction of any felony; or willful non-performance of material duties that is not cured within sixty (60) days after receipt of written notice to you from the Board of Directors. |
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“Good Reason” means, without your written consent: (A) a material reduction in your duties, responsibilities or authority, (B) a reduction in your base salary or target annual incentive bonus opportunity, (C) you are required to relocate your place of employment to a location that is more than thirty-five (35) miles from the location of the Company's current headquarters, (D) your removal without Cause as Chief Administrative Officer of CEB, or (E) a material breach of this letter agreement by the Company; provided that no such event shall be deemed to be a basis for your resignation for Good Reason unless, within sixty (60) days of the occurrence of such event, you deliver written notice to CEB stating that you believe that a basis for termination for Good Reason exists and specifying the event that you consider to constitute the basis for termination for Good Reason, and CEB shall not have remedied or cured such event within sixty (60) days of receipt of such notice. |
3.Equity Awards. Upon your departure from the Company upon or following the end of the Transition Period (or, if earlier, your termination without Cause or your resignation for Good Reason), pursuant to the discretion provided to the Compensation Committee of the Board of Directors under CEB’s 2012 Stock Incentive Plan, all of your unvested equity awards shall vest pursuant to the “Retirement” provisions of such Plan. In the event of your termination without Cause or resignation for Good Reason prior to the end of the Transition Period, such treatment is subject to your execution of the Company’s standard form separation agreement and release (which will incorporate your Employer Protection Agreement and apply its restrictions as if you had voluntarily resigned).
4.Medical Benefits. You will be eligible for coverage under the CEB Retiree Medical Policy as in effect on September 30, 2016. For the avoidance of doubt, this coverage under the terms of such Policy as currently in effect shall apply even if the Policy is modified or terminated following the date hereof.
Nothing herein provides you any right to continued employment with the Company, nor does anything herein preclude your continued employment beyond the Transition Period. Rather, you will remain an “at-will” employee and your employment may be terminated by you or by the Company at any time with or without Cause. For the avoidance of doubt, this letter agreement does not impact any rights you may have under any CEB change in control or severance plan or program applicable to you.
Thank you again for your loyal service to the Company and the critical role you will continue to play in our success. If the terms and conditions of this letter are acceptable to you, please sign below and return a copy of the letter to me.
Sincerely,
/s/ Thomas L. Monahan
Thomas L. Monahan III
Chief Executive Officer
ACCEPTED AND AGREED:
/s/ Melody L. Jones
_____________________
Melody L. Jones
October 6, 2016
_____________________
Date
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Exhibit 10.2
1919 North Lynn Street Arlington, VA 22209 United States Tel: +1-571-303-3000 Fax: +1-571-303-3100 |
September 30, 2016
Mr. Richard Lindahl
Chief Financial Officer
CEB Inc.
Dear Rich:
In recognition of your years of loyal service and contributions to CEB Inc. (“CEB” or the “Company”), as well as ensuring consistency of communication with the Board of Directors and capital markets participants and assisting in transition matters with the forthcoming change in the Company’s Chief Executive Officer, CEB will provide you the following payments and benefits. For purposes hereof, the “Transition Period” commences on the date of this letter and continues until December 31, 2017 or, if later, the end of the second calendar quarter following when the new CEO commences employment (the “Transition Period”).
1.Compensation. You will be eligible to receive an increase in your base salary effective April 1, 2017, and you will be eligible to receive a cash bonus for the 2016 performance year no later than March 15, 2017, subject to your performance against the applicable objectives as determined pursuant to standard CEB practice. You will also be eligible to receive a restricted stock unit (RSU) grant in March 2017 in accordance with standard procedures.
2.Performance Bonus. Your annual bonus for the 2017 performance year shall be no less than your target bonus. Your target bonus, for the avoidance of doubt, is 100% of your base salary. If the Transition Period continues into the 2018 performance year, your annual bonus for that performance year shall be no less than 100% of your target bonus on a prorated basis for any calendar quarters in 2018 that are included in the Transition Period. This payment is subject to your continued employment through the end of the Transition Period; provided that if the Company terminates your employment without Cause, you resign for Good Reason, or you die while an employee, you (or as applicable, your estate) shall receive such guaranteed minimum bonus payment subject to your execution of the Company’s standard form separation agreement and release (which will incorporate your Employer Protection Agreement and apply its restrictions as if you had voluntarily resigned). For purposes hereof:
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(i) |
“Cause” means your commission of a material act of fraud, theft or dishonesty against CEB; conviction of any felony; or willful non-performance of material duties that is not cured within sixty (60) days after receipt of written notice to you from the Board of Directors. |
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(ii) |
“Good Reason” means, without your written consent: (A) a material reduction in your duties, responsibilities or authority, (B) a reduction in your base salary or target annual incentive bonus opportunity, (C) you are required to relocate your place of employment to a location that is more than thirty-five (35) miles from the location of the Company's current headquarters, (D) your removal without Cause as Chief Financial Officer of CEB, or (E) a material breach of this letter agreement by the Company; provided that no such event shall be deemed to be a basis for your resignation for Good Reason unless, within sixty (60) days of the occurrence of such event, you deliver written notice to CEB stating that you believe that a basis for termination for Good Reason exists and specifying the event that you consider to constitute the basis for termination for Good Reason, and CEB shall not have remedied or cured such event within fifteen (15) days of receipt of such notice. |
Nothing herein provides you any right to continued employment with the Company, nor does anything herein preclude your continued employment beyond the Transition Period. Rather, you will remain an “at-will” employee and your employment may be terminated by you or by the Company at any time with or without Cause. For the avoidance of doubt, this letter agreement does not impact any rights you may have under any CEB change in control or severance plan or program applicable to you.
Thank you again for your loyal service to the Company and the critical role you will continue to play in our success. If the terms and conditions of this letter are acceptable to you, please sign below and return a copy of the letter to me.
Sincerely,
/s/ Thomas L. Monahan
Thomas L. Monahan III
Chief Executive Officer
ACCEPTED AND AGREED:
/s/ Richard S. Lindahl
_____________________
Richard Lindahl
October 6, 2016
_____________________
Date
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