| Item 2.02 | Results of Operations and Financial Condition. |
On August 9, 2023, The Wendy’s Company (the “Company”) issued a press release reporting its financial results for the fiscal quarter ended July 2, 2023 and other information. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Item 2.02, including the Exhibit 99.1 furnished under Item 9.01, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section. Furthermore, the information in this Item 2.02, including the Exhibit 99.1 furnished under Item 9.01, shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933 or the Exchange Act.
| Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
On August 3, 2023, the Company updated the awards provided to its eligible employees, including its executive officers, under The Wendy’s Company 2020 Omnibus Award Plan (the “2020 Plan”) and The Wendy’s Company 2010 Omnibus Award Plan (together with the 2020 Plan, the “Plans”) in the event of a qualified retirement (“Retirement”). Under the updated treatment, a Retirement occurs upon an employee’s voluntary termination of employment with the Company at a time that Cause (as defined in the Plans) does not exist (A) after attaining age 60, (b) after having at least 10 years of employment with the Company, (C) as of the date specified in a written notice provided by the employee to the Company at least six months before the proposed retirement date (or such other date as agreed to by the Company) and (D) the employee otherwise complying with the terms of the Company’s then-current retirement policy.
In connection with the changes described above, the Performance Compensation Subcommittee (the “Committee”) of the Board of Directors of the Company amended all currently outstanding non-qualified stock option awards (the “Options”), restricted stock unit awards (the “Restricted Stock Units”) and performance unit awards (the “Performance Units” and, together with the Options and Restricted Stock Units, the “Awards”) issued under the Plans (the “Existing Award Agreements”) and adopted new forms of award agreements to be issued under the 2020 Plan (the “New Award Agreements”). Under the amendment to the Existing Award Agreements (the “Amendment”), a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K, the Company amended the Existing Award Agreements to revise certain terms related to vesting and exercisability upon an eligible employee’s Retirement from the Company.
The amended terms of the Awards issued under the Existing Award Agreements are described below. The terms of the New Award Agreements are materially consistent with the terms of the Existing Award Agreements, as amended by the Amendment. Copies of the New Award Agreements with respect to the Options, Restricted Stock Units and Performance Units are filed as Exhibits 10.2 to 10.5 to this Current Report on Form 8-K. The descriptions of the Amendment and the New Award Agreements herein do not purport to be complete and are subject to, and qualified in their entirety by, the full text of the Amendment and the New Award Agreements, as applicable.
The Options were modified by the Amendment to provide that, in the event of the employee’s Retirement, any outstanding Options held by the employee will continue to vest as if the employee remained employed on each scheduled vesting date and will be exercisable until the expiration of the Option (subject to the applicable vesting dates). Consistent with the Existing Award Agreements prior to the Amendment, in the event an employee would have qualified for Retirement but for the fact that the employee attained age 55 (but not age 60), any outstanding vested Options held by the employee will be exercisable for three
