Sysco Corp 8-K, filed Dec 22, 2020
Sysco Corp (SYY)
About this 8-K
Sysco Corp filed this 8-K on December 22, 2020, reporting on events of December 17, 2020.
Items reported
- Item 5.02: Director or officer change, or executive pay
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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SECTION 5 – CORPORATE GOVERNANCE AND MANAGEMENT
| ITEM 5.02 | DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS. |
(e) On December 17, 2020, the Compensation and Leadership Development Committee (the “Committee”) of the Board of Directors (the “Board”) of Sysco Corporation (“Sysco” or the “Company”) approved the cash-based incentive awards to the Company’s executive officers for the second half of fiscal year 2021 pursuant to Sysco’s Short-Term Incentive Program (SIP) For Corporate SIP Bonus-Eligible Positions (the “STIP”), including the following named executive officers (the “NEOs”) identified in the Company’s proxy statement filed in connection with the 2020 annual meeting of stockholders:
| • | Kevin P. Hourican – President and Chief Executive Officer; |
| • | Joel T. Grade – Executive Vice President, Business Development; |
| • | Greg D. Bertrand – Executive Vice President, U.S. Foodservice Operations; and |
| • | Cathy Marie Robinson – Executive Vice President, Chief Supply Chain Officer. |
The STIP, which divided fiscal 2021 into two discreet performance periods: (i) June 28, 2020 to December 26, 2020 and (ii) December 27, 2020 to July 3, 2021 (“2H21”), is designed to offer opportunities for cash compensation tied to Company performance and the NEO’s achievement of his or her strategic bonus objectives (“SBOs”). Incentive payments earned under the STIP for 2H21 will be based on the following components:
| • | 25% on the increase in the volume of sales from new accounts in U.S. broadline and Canadian broadline (“USCABL”), as compared to the pre-established target, subject to a modifier (ranging between -15% to +15%) that compares Sysco’s sales growth in the U.S. Foodservice and SYGMA markets to the growth in such markets by the rest of the foodservice industry; |
| • | 25% on USCABL operations productivity, measured by the variable operations labor cost per piece, as compared to the pre-established target; and |
| • | 50% on the participant’s individual progress with respect to his or her SBOs, which are tied to Sysco’s highest priority strategic initiatives. |
The STIP payment for the 2H21 awards, if any, for each of the above components will be calculated based on performance (as compared to each applicable performance target) and paid to the participant independently from the other components. The component of the 2H21 awards based on the sales from USCABL new accounts combined with the sales growth modifier has a possible payout between 0% and 172.5% of target, while each of the other components has a possible payout between 0% and 150% of target. Consequently, in the aggregate, the maximum incentive opportunity under the 2H21 awards would be approximately 155.6% of an individual’s target opportunity. If performance with respect to any component does not meet the threshold level, a participant will not receive any payment with respect to that component.
Further, any payment earned by a participant for a particular performance period will be paid following the conclusion of the performance period, without regard to whether any payments are earned for any other performance periods.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Sysco Corporation has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Sysco Corporation | ||||||
| Date: December 22, 2020 | By: | /s/ Eve M. McFadden | ||||
| Eve M. McFadden | ||||||
| Senior Vice President, Legal, General Counsel and Corporate Secretary | ||||||
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