ADT 2012 Annual Report Download - page 60

Change in Control and Severance Benefits
The ADT Corporation Severance Plan for U.S. Officers and Executives (the “Severance Plan”) generally
governs the benefits that would become payable to our named executive officers upon their termination of
service to the Company, while The ADT Corporation Change in Control Severance Plan (the “CIC Severance
Plan”) generally governs the benefits that would become payable to our named executive officers upon their
termination of service due to a Change in Control. As described below, a “double trigger” is required under the
CIC Severance Plan before most benefits become available to the executives covered by that plan.
The table below summarizes the key terms and provisions of the severance plans that are currently in effect.
Severance Arrangements for Named Executive Officers
Description Change-in-Control
Other Terminations (not Change-in-
Control)
Governing document: CIC Severance Plan.
For equity awards, individual
award agreements.
Severance Plan.
For equity awards, both the
Severance Plan and individual
award agreements.
Termination events triggering
severance cash benefits and benefits
continuation:
• Involuntary termination other
than for Cause, permanent
disability or death within the
period beginning 60 days
prior to and ending 24 months
following a change in control.
• Good Reason Resignation
within the same time period.
No cash benefit is payable under
the CIC Severance Plan in the
event of death or disability.
Involuntary termination other than
for Cause, permanent disability or
death.
No cash benefit is payable under
the Severance Plan in the event of
death or disability.
Severance cash benefit: Two times base salary and two
times target annual bonus.
Two times base salary and two
times target annual bonus for
Mr. Gursahaney; 1.5 times base
salary and 1.5 times target annual
bonus for our other named
executive officers.
Executive must sign release to
receive severance benefits:
Yes. Yes.
Health and welfare benefits
continuation:
Twelve months from date of
termination for medical and dental
and health care reimbursement
account benefits only, if the
executive does not commence
employment with another
company during the severance
period. The executive will also be
entitled to a cash payment equal to
the projected value of the
employer portion of medical and
dental benefit premiums for a 12-
month period.
Twelve months from date of
termination for medical and dental
and health care reimbursement
account benefits only, if the
executive does not commence
employment with another
company during the severance
period. The executive will also be
entitled to a cash payment equal to
the projected value of the
employer portion of medical and
dental benefit premiums for an
additional period up to 12 months.
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