A number of area and regional staff members lost their job when Gentiva purchased Harden Healthcare. They became expendable as the acquisition neared closing. They may want to know the severance package for Gentiva's senior leaders as outlined in a SEC filing:
(i) The Company shall pay to the Executive (A) base salary at the rate then in effect through the date of the Executive’s termination of employment in accordance with the standard payroll practices of the Company or such earlier date as required by applicable law, and (B) any earned but unused paid time off (“PTO”) in accordance with the Company’s general PTO policy, which shall be paid in a lump sum ten (10) business days after the date of such termination of employment;
(ii) The Company shall pay to the Executive an amount in cash equal to two times (2x) the sum of (A) the Executive’s annual base salary in effect immediately prior to the date of the Executive’s termination of employment or the date of the Change in Control (whichever is higher), and (B) the higher of (x) the Executive’s target annual bonus for the year that includes the date of the Executive’s termination of employment or (y) the annual bonus of the Executive averaged for the three (3) years immediately prior to the year that includes the date of the Executive’s termination of employment; and such amount shall be paid, subject to Section 10 below, in a lump sum ten (10) business days after the date of such termination of employment;
(iii) The Executive shall be entitled to a pro rata share of the target annual bonus for the year that includes the date of the Executive’s termination of employment based on the number of days of such year that the Executive was employed by the Company, which shall be paid, subject to Section 10 below, in a lump sum ten (10) business days after the date of such termination of employment;
(iv) The Company shall continue to cover the Executive and his or her dependents under, or provide the Executive and his or her dependents with insurance coverage no less favorable than, the Company’s life, health and dental plans or programs (as in effect on the day immediately preceding the Protection Period or on the date of termination of his or her employment, whichever is more favorable to the Executive) for a period equal to the lesser of (x) two years following the date of termination or (y) until the Executive is provided by another employer with benefits substantially comparable to the benefits provided by such plans or programs, provided, however, that the provision of this benefit shall be contingent upon the cooperation of the Executive (or his or her spouse or dependent, as applicable) with any reasonable request by the Company to facilitate the provision of such benefit, including responding to questionnaires and submitting to minimally intrusive medical examinations. Executive shall be responsible for any Federal, state or local tax with respect to such benefit coverage described in this subsection (iv);
(v) All options to purchase Company stock held by the Executive and all restricted shares of Company stock, restricted Company share units, performance share units, performance cash awards and other equity-based compensation awards held by the Executive shall become immediately vested in full upon such termination of employment, and all such stock options shall be exercisable for the longer of (x) one year following such termination of employment (but not beyond the original full term of the award) or (y) such period of time as may be provided for in the plan under which such awards were granted;
(vi) All of the Executive’s benefits accrued under the pension, retirement, savings and deferred compensation plans of the Company shall become vested in full; provided, however, that to the extent such accelerated vesting or benefits cannot be provided under one or more of such plans because of nondiscrimination requirements under the Code, a cash amount equivalent to any unvested benefits shall be paid to the Executive outside the applicable plan in a lump sum, subject to Section 10 below, ten (10) business days after the date of termination of employment; provided, further, however, that, to the extent any such unvested benefit constitutes nonqualified deferred compensation for purposes of Section 409A of the Code, the payment of a cash amount equivalent to such nonqualified deferred compensation shall instead be made at the time the underlying benefit was otherwise scheduled to be paid under the applicable plan; and
(vii) The Executive shall be entitled to outplacement services with an outplacement firm of the Executive’s choice for up to twelve (12) months or until the Executive obtains comparable employment (as determined by the Company), whichever is shorter; provided, however, that (i) the Executive must select an outplacement firm and commence the outplacement services no more than ninety (90) days following the Executive’s termination of employment, (ii) such outplacement services must be reasonable and commensurate with the Executive’s position with the Company (as determined by the Company), and (iii) in no event, shall the aggregate amount the Company incurs to provide such outplacement services exceed more than thirty thousand dollars ($30,000).
How many employees who lost their job in a change of control move got any kind of severance package? How does their severance compare with this agreement's generous provisions?
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