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SEC Filings / Section 16 Reports

DEF 14A
BECTON DICKINSON & CO filed this Form DEF 14A on 12/03/2018
Entire Document
 

Under the agreement with Mr. Forlenza, if any payments or distributions made by BD to Mr. Forlenza as a result of a change in control would be subject to an excise tax imposed by the Internal Revenue Code, BD will make a tax reimbursement payment to him. As a result of this payment, Mr. Forlenza would retain the same amount, net of all taxes, that he would have retained had the excise tax not been triggered. This provision applies to any payments or distributions resulting from the change in control, including the accelerated vesting of equity awards. However, if such payments and distributions do not exceed 110% of the level that triggers the excise tax, the payments will be reduced to the extent necessary to avoid the excise tax.
The following table sets forth the estimated benefits the named executive officers would receive under his agreement in the event the executive was terminated without “cause” or terminated his employment for “good reason” following a change in control. The table assumes a termination date of September 30, 2018. These estimates are based on salary rates in effect as of September 30, 2018, and use the 2018 target PIP awards of the named executive officers as the Incentive Payment.
Name
Incentive
Payment($)
 
Severance
Payment($)
 
Additional
Retirement
Benefits($)
 
Health and
Welfare
Benefits($)
 
Outplacement
Services($)
 
Total($)
Vincent A. Forlenza
1,820,693

 
9,062,080

 
630,000

 
45,000

 
100,000

 
11,657,773

Christopher R. Reidy
849,696

 
3,357,400

 
200,826

 
30,000

 
100,000

 
4,537,922

Patrick K. Kaltenbach
178,082

 
1,656,165

 
0

 
30,000

 
100,000

 
1,964,247

Samrat S. Khichi
337,500

 
3,977,686

 
0

 
26,000

 
100,000

 
4,441,186

Thomas E. Polen
858,000

 
5,148,000

 
0

 
45,000

 
100,000

 
6,151,000

Accelerated vesting of equity compensation awards upon a change in control
For awards granted prior to January 1, 2015, upon a change in control (as defined in our equity compensation plans), all unvested SARs become fully vested and exercisable, and all time-vested restricted stock units and Performance Units become fully vested and payable (with Performance Units being payable at their target amount). This accelerated vesting occurs with respect to all equity compensation awards granted by BD, not just those granted to the named executive officers. No termination of employment is required to trigger this acceleration.
Awards made after January 1, 2015 will not automatically vest upon a change in control if the awards are either continued or replaced with similar awards. In those instances, the awards will automatically vest only if the associate is terminated without “cause” or the associate terminates employment for “good reason” (as such terms are defined in the 2004 Plan) within two years of the change in control.
Equity compensation upon termination of employment
Upon a named executive officer’s termination due to retirement:
all unvested SARs held by the named executive officer become fully exercisable for their remaining term;
all time-vested restricted stock units held by the named executive officer vest at, or on the first anniversary of, retirement; and
all Performance Units held by the named executive officer vest pro rata based on the amount of the vesting period that had elapsed. The payments would be made after the end of the applicable vesting periods and would be based on BD’s actual performance for the applicable performance periods, rather than award targets.
 
Upon a named executive officer’s termination due to involuntary termination without cause:
the named executive officer is entitled to exercise his SARs for three months following termination, but only to the extent they were vested at the time of termination;
all TVUs held by the named executive officer vest pro rata based on the amount of the vesting period that had elapsed and all other time-vested restricted stock units fully vest; and
all Performance Units held by the named executive officer vest pro rata based on the amount of the vesting period that had elapsed. The payments would be made after the end of the applicable vesting periods and

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