Donaldson ( NYSE: DCI ) this month adopted a management change in control severance plan that includes all executive officers of the filtration products company as participants.
The terms of the plan describe what is considered a change of control, such as in some kinds of merger agreements with another company.
“The plan primarily changes the form of the arrangement from individual agreements to a plan document covering all the participants," according to the 8-K filing.
The plan provides certain benefits to the company's executive officers in the event of a "double trigger" involving a change in control with a qualifying termination of employment.
Change-in-control compensation plans may be triggered in several scenarios. A single trigger typically allows for payment by a change in control, while a double trigger usually occurs with a severance after the change in control.
Seeking Alpha asked Donaldson's ( DCI ) investor relations by email for comment on the severance plan.
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Donaldson adopts uniform change-in-control severance plan