EXPLANATORY NOTE
This Amendment No. 1 amends the Current Report on Form 8-K (the “Original 8-K”) Nucor Corporation (the “Company”) filed with the Securities and Exchange Commission on December 18, 2020, regarding, among other things, the election of David A. Sumoski as Chief Operating Officer of the Company, effective January 1, 2021. The disclosure included in the Original 8-K otherwise remains unchanged.
| Item 5.02. | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
On January 4, 2021, the Company and Mr. Sumoski entered into an Executive Employment Agreement (the “Executive Employment Agreement”), effective January 1, 2021, in connection with Mr. Sumoski’s promotion to Chief Operating Officer of the Company. The Executive Employment Agreement contains the entire agreement of the parties and supersedes all prior agreements between the parties related to Mr. Sumoski’s employment with the Company, including that certain Executive Employment Agreement by and between the Company and Mr. Sumoski effective as of February 17, 2020.
Pursuant to the Executive Employment Agreement, Mr. Sumoski’s annual base salary increased to $605,000, effective January 1, 2021.
The Executive Employment Agreement also provides for the payment of a non-compete benefit to Mr. Sumoski as consideration for compliance with the confidentiality, non-competition, non-solicitation and other restrictive covenants set forth in the Executive Employment Agreement. The non-compete benefit is equal to one month of base salary for each year of service with the Company (subject to a minimum of six months of base salary); provided, if Mr. Sumoski is under age 55, the non-compete benefit will not be less than the sum of the value of his forfeitable common stock units deferred and shares of restricted stock awarded under the Company’s long-term incentive plan. The non-compete benefit will be paid to Mr. Sumoski in 24 equal monthly installments following termination; provided, if Mr. Sumoski dies during the first 12 months following his termination from employment, then Mr. Sumoski’s estate will receive monthly installments of the non-compete benefit only through the end of the 12th month following his termination. No non-compete benefit is payable if Mr. Sumoski dies while employed by the Company.
In lieu of the non-compete benefit described above, if Mr. Sumoski’s employment is involuntarily terminated by the Company or Mr. Sumoski resigns for Good Reason (as defined in the Executive Employment Agreement), in either case within 24 months of a change in control of the Company, Mr. Sumoski would receive a non-compete benefit, payable in a lump sum cash payment, equal to the sum of:
(a) a “base amount” multiplied by 2.5, with the “base amount” being equal to the sum of (i) Mr. Sumoski’s base salary and (ii) the greater of (A) 150% of Mr. Sumoski’s base salary and (B) the average performance award under the Company’s annual incentive plan for the three fiscal years prior to Mr. Sumoski’s termination of employment (provided for purposes of calculating such average, the performance award under the annual incentive plan for any year in such three-fiscal year period Mr. Sumoski did not hold his current position will be equal to the performance award under the annual incentive plan for such year for his position as a percentage of base salary multiplied by his base salary); and
