Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
On June 24, 2020, Six Flags Entertainment Corporation (the “Company”) announced that the Company has appointed Sandeep Reddy as Executive Vice President and Chief Financial Officer of the Company, effective July 1, 2020 (the “Reddy Effective Date”).
Sandeep Reddy, age 49, previously served as Chief Financial Officer of Guess?, Inc., a contemporary clothing and accessories retailer, from July 2013 through December 2019. Prior to that role, since 2010, he served as Vice President and European Chief Financial Officer of Guess, where he was responsible for all aspects of Guess’ European finance functions, including financial planning, treasury, accounting and tax. From 1997 to 2010, Mr. Reddy served in a number of positions of increasing responsibility for Mattel Inc., a leading global toy manufacturer, ultimately serving as Vice President Finance and Supply Chain for the SEUR (France, Spain, Portugal, Italy) cluster. Mr. Reddy has a BA (Honors) in Economics from Delhi University and an MBA from Cornell University.
In connection with Mr. Reddy’s appointment as Executive Vice President and Chief Financial Officer, the Company entered into an employment agreement dated June 21, 2020 with Mr. Reddy (the “Reddy Employment Agreement”) that provides for, among other things, a base salary of $650,000 per year and an annual bonus opportunity with a target of 90% of his base salary. On the Reddy Effective Date, in accordance with a restricted stock unit agreement, under the Company’s Long-Term Incentive Plan, Mr. Reddy will be granted (i) restricted stock units of the Company with a value of $1,000,000, which will vest on the second anniversary of the Reddy Effective Date, and (ii) restricted stock units of the Company with a value of $800,000, which will vest in equal amounts upon each of the first three anniversaries of the grant date. Mr. Reddy will also be entitled to participate in or receive benefits under the employee benefit programs of the Company, including the Company’s life, health and disability programs and relocation program, as well as to receive reimbursement of certain expenses incurred during his employment. The Reddy Employment Agreement also contains provisions for separation payments and benefits upon certain types of termination of employment as well as contains customary non-competition, indemnification, confidentiality and proprietary information provisions.
The foregoing description of the Reddy Employment Agreement does not purport to be complete and is qualified in its entirety by the text of the agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K.
Consistent with other executive officers of the Company, Mr. Reddy has agreed to a temporary 25% reduction of his base salary to mitigate the operating and financial impact of the COVID-19 pandemic in accordance with the approved form of amendment to executive officer’s employment agreement. The reduction does not impact the definition of “Base Salary” in the Reddy Employment Agreement for any purpose other than payment of base salary during this temporary period.
Leonard Russ, who has acted as Interim Chief Financial Officer since February 2020, will transition to an operational role and continue to report to Michael Spanos, President and Chief Executive Officer of the Company.
Item 7.01Regulation FD Disclosure
On June 24, 2020, the Company issued a press release announcing the appointment of Mr. Reddy as Executive Vice President and Chief Financial Officer, a copy of which is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1Press Release of Six Flags Entertainment Corporation, dated June 24, 2020
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