Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
On March 13, 2023, Mr. Vimal Kapur, age 57, was appointed to the Board of
Directors (the "Board") of Honeywell International Inc. ("Honeywell" or the
"Company"). The appointment of Mr. Kapur to Honeywell's Board is part of the
Company's Chief Executive Officer ("CEO") succession plan announced today
whereby Mr. Kapur will succeed Honeywell's current Chairman and CEO, Mr. Darius
Adamczyk, as CEO effective June 1, 2023 (the "Effective Date"). On that date,
Mr. Adamczyk will cease to be CEO but remain as an employee of the Company in
the capacity of Executive Chairman of the Board. Mr. Kapur is currently
Honeywell's President and Chief Operating Officer, a position he will continue
to hold until he succeeds Mr. Adamczyk as CEO. Mr. Kapur will not serve on any
of the Committees of the Board.
To facilitate the transition and enable continuity, the Company and Mr. Adamczyk
have entered into a Letter Agreement, which will allow the Company to leverage
Mr. Adamczyk's expertise over a longer period of time. Pursuant to the Letter
Agreement, during his service as Executive Chairman of the Board, Mr. Adamczyk
will receive a base salary of $1,275,000, and will have a target annual
incentive compensation opportunity of $1,933,750, with any paid bonus taking
into account, on a pro-rated basis, Mr. Adamczyk's period of service as CEO and
his service as Executive Chairman of the Board in 2023. In the event
Mr. Adamczyk serves in the Executive Chairman of the Board role for less than a
full year in 2024 or in a subsequent year, Mr. Adamczyk's annual incentive
compensation payment will be pro-rated based on his actual period of service in
that year. Mr. Adamczyk's 2024 long-term incentive award will have a grant-date
value of $9,000,000. In addition, he will be provided with health, welfare and
fringe benefits consistent with those provided to the Company's other senior
executives generally and certain perquisites consistent with those provided to
him while serving as CEO.
While Mr. Adamczyk serves as Executive Chairman of the Board, he will continue
to be covered by the Company's Severance Plan for Designated Officers, as
amended and restated effective as of February 11, 2021 (the "Severance Plan"),
provided that his severance protection under the Severance Plan will mirror the
protection provided to the Company's CEO but with his severance pay based on his
compensation in the Executive Chairman role.
Beginning on such date not earlier than April 1, 2024 that the Board of
Directors shall determine (the "Transition Date"), Mr. Adamczyk's role will
transition from Executive Chairman of the Board to Senior Advisor of the
Company, and if requested by the Board, Mr. Adamczyk will resign from the Board
on the Transition Date. To the extent Mr. Adamczyk continues to serve as
Executive Chairman after December 31, 2024, both Mr. Adamczyk and the Board
shall have the right to determine the Transition Date on 30 days' notice to the
other.
In the Senior Advisor role, Mr. Adamczyk will report to the Board and the CEO,
provide advice on strategic and operational matters, and meet with key
stakeholders at the Company's request. Mr. Adamczyk will receive a base salary
of $1,000,000 for the first year he serves as Senior Advisor, and thereafter,
his base salary will be reduced to $60,000 per year. In addition, during his
first year as Senior Advisor, Mr. Adamczyk will continue to be entitled to
healthcare benefits consistent with those provided to the Company's other senior
executives generally. While serving as Senior Advisor, he will not be entitled
to a target annual incentive compensation opportunity or long-term incentive
award.
During his first five years in the Senior Advisor role, Mr. Adamczyk's
employment relationship will cease only upon his death, his resignation, or
termination by the Company for Cause (as defined in the Severance Plan).
Mr. Adamczyk will not be covered by the Severance Plan after the Transition
Date.
Mr. Adamczyk will continue to remain subject to his existing non-compete and
non-solicit restrictions until the third anniversary of the Transition Date.
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In connection with his promotion to CEO and beginning on the Effective Date,
Mr. Kapur will receive a base salary of $1,500,000 and shall have a target
annual incentive compensation opportunity of 175% of base salary. As of the
Effective Date, Mr. Kapur will receive a long-term incentive award with a grant
date value equal to $4,140,000. His long-term incentive award in 2024 will have
a target value of $13,000,000, with no less than 50% of the target value being
in the form of three-year performance stock units issued pursuant to the
performance plan. The size and terms of any future long-term incentive awards
will be determined by the Board in the ordinary course, will reflect Company
performance and Mr. Kapur's performance and future career potential, and will be
determined in a manner consistent with prior long-term incentive awards.
There are no arrangements or understandings between Mr. Kapur and any other
persons pursuant to which he was appointed to the Board or as the Company's CEO.
There is no family relationship between Mr. Kapur and any director, executive
officer, or person nominated or chosen by the Company to become a director or
executive officer of the Company. The Company has not entered into any
transactions with Mr. Kapur that would require disclosure pursuant to Item
404(a) of Regulation S-K under the Securities Exchange Act of 1934, as amended
(the "Exchange Act").
Item 7.01 Regulation FD Disclosure.
The Company issued the press release attached hereto as Exhibit 99.1 with
respect to the matters set forth in Item 5.02 above and Item 8.01 below. The
information in Item 7.01 of this Current Report on Form 8-K is being furnished
and shall not be deemed "filed" for the purposes of Section 18 of the Exchange
Act, or otherwise subject to the liabilities of that section, and shall not be
deemed incorporated by reference into any filing made under the Securities Act
of 1933, as amended, or the Exchange Act, except as otherwise expressly stated
in such filing.
Item 8.01 Other Events.
In addition, on March 14, 2023, the Company announced that Mr. Billal Hammoud,
age 50, has been appointed to succeed Mr. Doug Wright as President and CEO of
Honeywell Building Technologies ("HBT"), effective as of April 1, 2023.
Mr. Wright will leave the Company to pursue another opportunity. Mr. Hammoud has
served as President of Honeywell's Smart Energy and Thermal Solutions business
in Honeywell's Performance Materials and Technologies segment ("PMT") since
2021, and between 2014 and 2017, he served in PMT as Vice President and General
Manager of Thermal Solutions and Vice President and General Manager of
Combustion Controls. Between 2017 and 2021, Mr. Hammoud was President of ESAB
Americas and Global Fabrication Solutions at Colfax. Mr. Hammoud earned his
Bachelor of Science degree in Mechanical Engineering and MBA from Wayne State
University.
Item 9.01 Financial Statement and Exhibits.
(d) Exhibits
10.1 Letter Agreement dated March 13, 2023 from Honeywell International Inc.
to Darius Adamczyk.
10.2 Offer Letter dated March 13, 2023 from Honeywell International Inc. to
Vimal Kapur.
99.1 Press Release dated March 14, 2023, entitled "Honeywell Names 34-Year
Honeywell Veteran Vimal Kapur To Succeed Darius Adamczyk As CEO On June 1,
2023; Kapur Elected To Company's Board Of Directors; Adamczyk To Serve As
Executive Chairman."
104 Cover Page Interactive Data File (the cover page XBRL tags are embedded
within the Inline XBRL document).
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