Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On August 30, 2021, Willis Towers Watson plc (the "Company") announced that
Andrew Krasner, 45, will succeed Michael J. Burwell as Chief Financial Officer,
effective as of September 7, 2021. Mr. Burwell resigned from the Company on
August 26, 2021, effective as of September 30, 2021, although he will step down
as Chief Financial Officer upon Mr. Krasner's commencement of employment. In
connection with his resignation, Mr. Burwell (i) will receive a completion bonus
of $1 million as he transitions his position and to reflect his achievements
during a challenging year, and 3 months of COBRA coverage and (ii) the unvested
portion of his Non-Qualified Deferred Savings Plan and Non-qualified Stable
Value Excess Plan totaling 2,443 shares will vest. He will forfeit his
outstanding 2019, 2020, and 2021 Operating Committee Long-Term Incentive Plan
awards. Following his resignation, Mr. Burwell will be subject to customary
restrictive covenants and non-solicitation provisions and will sign a release of
claims in favor of the Company.
Mr. Krasner will rejoin the Company from Assured Partners, Inc. where he served
as Chief Financial Officer since February 2021. Prior to that, Mr. Krasner
served in various positions at the Company, including Global Treasurer and Head
of Mergers and Acquisitions for Willis Towers Watson and senior vice president
of Willis Towers Watson Securities, since 2009. There are no familial
relationships between Mr. Krasner and any other executive officer or director of
the Company. There have been no transactions, and no transactions are currently
proposed, in which the Company was or is to be a participant and in which
Mr. Krasner or any member of his immediate family had or will have any interest
that is required to be disclosed by Item 404(a) of Regulation S-K.
Pursuant to an offer letter, dated as of August 26, 2021, the terms of
Mr. Krasner's employment are as follows: (i) an annual base salary of $800,000;
(ii) a target short-term incentive bonus of 125% of his base salary, which for
2021 will be no less than Mr. Krasner's target bonus prorated for the number of
days employed by the Company in 2021; (iii) a target long-term incentive bonus
of 200% of his base salary starting in 2022; (iv) a cash sign on bonus
equivalent to $50,000 per month (including prorated amounts for partial months
up to the start date) for the months during 2021 that Mr. Krasner was not
employed by the Company, subject to a 12 month clawback; and (v) a sign-on award
of time-based restricted stock units valued at $3,000,000, to vest ratably over
three years. Mr. Krasner will also participate in the Company's Severance and
Change in Control Plan for U.S. Executives (the "Executive Severance Plan"). In
the event of a Qualifying Termination, and whether or not a Change in Control
occurs (as such terms are defined in the Executive Severance Plan), prior to the
end of the three-year period, the Company will either (i) accelerate the vesting
of any outstanding unvested units at the time of termination, subject to the
approval of the Compensation Committee, or, in the absence of such approval,
(ii) pay the cash value of the unvested outstanding awards.
In addition, Mr. Krasner will be subject to customary restrictive covenants and
non-solicitation provisions and he and the Company will enter into officer
indemnification agreements pursuant to which, among other things, the Company
agrees to indemnify its officers and advance certain expenses to the fullest
extent permitted by applicable law.
Item 7.01 Regulation FD.
The Company also issued a press release announcing Mr. Krasner's appointment as
Mr. Burwell's successor, which is being furnished as Exhibit 99.1 hereto. The
information contained in Item 7.01 of this Current Report on Form 8-K (including
Exhibit 99.1) is being furnished and shall not be deemed "filed" for the
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), or otherwise subject to the liabilities of that section. Such
information shall not be incorporated by reference into any registration
statement or other document pursuant to the Securities Act of 1933, as amended,
or the Exchange Act, except as shall be expressly set forth by specific
reference in any such filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit
No. Description
99.1 Press Release, dated August 30, 2021.*
104 Cover Page Interactive File (the cover page tags are embedded within
the Inline XBRL document).
* Filed herewith.
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