Item 9B. OTHER INFORMATION
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Item 9B. OTHER INFORMATION
On February 1, 2017, the Board of Directors of the Company, acting upon the recommendation of the Compensation & Human Resources Committee of the Board of Directors (the “Committee”), adopted the Delphi Automotive PLC Executive Severance Plan (the “Severance Plan”) and the Delphi Automotive PLC Executive Change in Control Severance Plan (the “Change in Control Plan”) (together, the “Plans”). The Plans are effective as of February 1, 2017, and were adopted to provide severance protections to certain executives who are designated by the Committee as eligible to participate in each Plan (each an “Eligible Executive”).
The Severance Plan provides for severance benefits in the event of a Qualifying Separation (as defined in the Severance Plan) of an Eligible Executive's employment. Pursuant to the Severance Plan, an Eligible Executive who incurs a Qualifying Separation would be entitled to receive severance payments during the applicable severance period, unless and until the Eligible Executive is employed by another employer. The Severance Plan also provides a COBRA subsidy for a period of up to 18 months following a Qualifying Separation.
The Change in Control Plan provides for severance benefits in connection with a Qualifying Separation (as defined in the Change in Control Plan), including a termination upon a Change in Control (as defined in the Change in Control Plan). Pursuant to the Change in Control Plan, an Eligible Executive who incurs a Qualifying Separation would be entitled to receive a lump sum cash payment in an amount equal to the sum of (a) three times base salary in the case of the CEO and two times base salary in the case of an Eligible Executive other than the CEO; and (b) in the case of the CEO, three times the higher of the CEO’s target annual cash incentive award opportunity for the year in which the separation occurs or in effect immediately prior to the Change in Control, or in the case of an Eligible Executive other than the CEO, two times the higher of the Eligible Executive’s target annual cash incentive award opportunity for the year in which the separation occurs or in effect immediately prior to the Change in Control. In addition, an Eligible Executive who incurs a Qualifying Separation is also entitled to receive a lump sum payment representing the sum of 36 monthly COBRA premiums for the CEO and 24 monthly COBRA premiums for Eligible Executives other than the CEO.
The above summary of the Plans is qualified by reference to the text of the Severance Plan that is filed herewith as Exhibit 10.2, and the Change in Control Plan that is filed herewith as Exhibit 10.3, each of which are incorporated herein by reference.
PART III
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