Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
On January 19, 2021, Acadia Healthcare Company, Inc., a Delaware corporation
(the "Company"), through its subsidiary Acadia Management Company, Inc., entered
into a new employment agreement (the "Agreement") with Ms. Debra K. Osteen, the
Chief Executive Officer of the Company and a member of the Company's board of
directors (the "Board").
The Agreement includes the following terms:
Annual Cash Compensation. Ms. Osteen's annual base salary will be $1,000,000 and
her target annual bonus will be 100% of her base salary (up to a maximum cash
bonus of 200% of her base salary). Ms. Osteen's salary may be increased from
time to time at the Board's or compensation committee's discretion.
Annual Equity Awards. For 2021, Ms. Osteen will be entitled to a long-term
incentive award consisting entirely of performance restricted stock units with a
target value equal to $5.2 million. The long-term incentive award will have a
one-year performance period ending December 31, 2021.
Termination Payments. In the event that the Company terminates her employment
without "cause" or if she resigns her employment for "good reason" (each as
defined in the Agreement), Ms. Osteen will be entitled to receive the following
severance benefits, subject to Ms. Osteen's timely execution
and non-revocation of a general release of claims in favor of the Company:
(i) accrued, but unpaid base salary, paid time off and sick pay, (ii) accrued
but unpaid cash bonus with respect to the completed performance period,
(iii) continued payment of her base salary from the termination date through
December 31, 2021, as if Ms. Osteen had continued to be employed during such
period, (iv) annual bonus for the year of termination based on actual
performance, which amount shall not be prorated and paid as if Ms. Osteen had
remained employed through December 31, 2021, (v) Company payment of health
insurance premiums for 18 months and (vi) with respect to the long term
incentive award, to the extent that it shall not otherwise have become vested,
(A) the service-based vesting requirement shall be deemed satisfied; and (B) the
long term incentive award will remain outstanding and eligible to vest based on
actual achievement of the applicable performance conditions.
Restrictive Covenants. Ms. Osteen will be subject
to non-competition, non-solicitation and non-disparagement covenants, during the
term of her employment and for specified periods thereafter.
The foregoing description of the Agreement is qualified in its entirety by
reference to the text of the Agreement, a copy of which is filed herewith as
Exhibit 10.1, and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit
No. Description
10.1 Employment Agreement with Ms. Osteen dated January 19, 2021.
104 Cover Page Interactive Data (embedded within the Inline XBRL document).
--------------------------------------------------------------------------------
© Edgar Online, source Glimpses