Shire PLC (SHPG) filed a Form 8K - Changes in Company Executive
Management - with the U.S Securities and Exchange Commission on
July 18, 2014.
Dr. Ornskov, Shire's Chief Executive Officer, will receive a
retention award in the amount of $9.9 million. The retention award
will become payable if Dr. Ornskov remains in the active employment
of Shire (or an appropriate alternative employer within the New
AbbVie group) until 30 June 2015 or in the event he incurs a
qualifying termination prior to such date.
As a result of the Combination, Section 4985 of the Internal
Revenue Code of 1986, as amended, imposes an excise tax equal to
15% (such tax, the "Excise Tax") on the value of certain equity
compensation held by any Shire "disqualified individual" (as
defined in Section 4985), including the Chief Executive Officer and
Chief Financial Officer. Shire has agreed to indemnify such persons
for any such Excise Tax obligation so that, on a net after tax
basis, they would be in the same position as if no such Excise Tax
had been applied.
The foregoing summary is subject to, and qualified in its
entirety by, the full text of the Rule 2.7 Announcement and the
full text of the Cooperation Agreement.
The full text of this SEC filing can be retrieved at:
http://www.sec.gov/Archives/edgar/data/936402/000095010314005136/dp48071_8k.htm
Any exhibits and associated documents for this SEC filing can be
retrieved at:
http://www.sec.gov/Archives/edgar/data/936402/000095010314005136/0000950103-14-005136-index.htm
Public companies must file a Form 8-K, or current report, with
the SEC generally within four days of any event that could
materially affect a company's financial position or the value of
its shares.
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