Globe Life Inc. (GL, Financial) has announced the adoption of a new Executive Severance Plan, as approved by its Board of Directors on November 13, 2024. This plan is designed to provide severance benefits to "Eligible Executives," including the company's Co-CEOs and other Named Executive Officers, and is administered by the Compensation Committee of the Board of Directors.
The plan outlines specific benefits for executives facing a "Qualifying Termination," which includes termination without cause or resignation for good reason. The benefits vary depending on whether the termination occurs outside or within a 24-month period following a change in control.
For terminations outside the change of control protection period, Co-CEOs are entitled to a cash severance amount equal to twice their base salary and target annual bonus, paid over 24 months. Other eligible executives receive 1.5 times their base salary and target annual bonus, paid over 18 months. Additionally, all eligible executives receive a lump sum payment covering 12 months of group health plan premiums, a pro rata target annual bonus, and up to $25,000 for employment transition assistance.
During the change of control protection period, all eligible executives receive a lump sum severance equal to twice their base salary and target annual bonus, 24 months of health plan premiums, a pro rata target annual bonus, and the same employment transition assistance.
The plan also includes conditions for continued compliance with confidentiality, non-solicitation, intellectual property, and non-disparagement provisions. Non-compliance or evidence of cause for termination can result in cessation of benefits and repayment of severance.
In conjunction with the plan, Globe Life Inc. has amended its award agreements for stock options, restricted stock units (RSUs), and performance shares. These amendments address vesting schedules and the treatment of dividends or distributions as additional RSUs or performance shares.
This strategic move by Globe Life Inc. aims to ensure stability and continuity within its executive team, providing a structured approach to executive transitions while safeguarding the company's interests.
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