UNUM GROUP FILES (8-K) Disclosing Change in Directors or Principal Officers
(Edgar Glimpses Via Acquire Media NewsEdge) Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
On December 27, 2013, Unum Group (the "Company") entered into a Second Amended
and Restated Employment Agreement with Thomas R. Watjen, President and Chief
Executive Officer of the Company, reducing, at his request, certain benefits
under his prior contract, primarily to reflect changes in the Company's defined
benefit pension plans.
In 2013, the Company changed the terms of its defined benefit pension plans to
freeze the further accrual of retirement benefits provided to employees on
December 31, 2013. Mr. Watjen requested similar changes to his retirement
benefit under the Unum Group Senior Executive Retirement Plan (the "SERP"). As a
result, his employment agreement was amended to freeze the further accrual of
his retirement benefit under the SERP.
The Second Amended and Restated Employment Agreement reflects the following
changes to the terms of Mr. Watjen's employment agreement and the SERP:
• The calculation of the retirement benefit provided to Mr. Watjen under the
SERP, as set forth in an attachment to the agreement, has been amended to
account for the freeze of the SERP effective December 31, 2013.
• The severance benefits to which Mr. Watjen would be entitled in the event
of termination of employment for good reason, or other than for cause,
death, retirement or disability, have been decreased by:
• eliminating the lump sum severance payment computed by assuming
continued accruals of benefits under the SERP for a period of three
years following the termination; and
• in the event the termination occurred outside of certain change in
control periods, reducing (x) the severance payment multiplier from
three times to two times the sum of his annual base salary and the
average of the annual bonuses paid or payable to him during the
previous three years, and (y) the continuation of health and welfare
benefits from three years to two years after termination of employment
under the agreement.
• The excise tax gross-up provisions of the agreement have been eliminated.
Under the amended agreement, payments to Mr. Watjen will be reduced if
doing so would avoid the imposition of the excise tax and result in a
greater after-tax return to him.
• Provisions related to the vesting and exercisability of Mr. Watjen's
equity-based awards have been revised to clarify that the awards will not
vest earlier or be exercisable longer than as provided in the applicable
award agreements and equity plans.
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