UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JANUARY 9, 2006
(JANUARY 3, 2006)
SOLUTIA INC.
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE
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(STATE OF INCORPORATION)
001-13255 43-1781797
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(COMMISSION (IRS EMPLOYER
FILE NUMBER) IDENTIFICATION NO.)
575 MARYVILLE CENTRE DRIVE, P.O. BOX 66760, ST. LOUIS, MISSOURI 63166-6760
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(314) 674-1000
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REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE
Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
As previously reported, on December 17, 2003, Solutia Inc.
("Solutia") and its 14 U.S. subsidiaries filed voluntary petitions for
reorganization under Chapter 11 of the U.S. Bankruptcy Code (the "Bankruptcy
Code") in the U.S. Bankruptcy Court for the Southern District of New York
(the "Bankruptcy Court"). The cases were consolidated for the purpose of
joint administration and were assigned case number 03-17949 (PCB). Solutia's
subsidiaries outside the United States were not included in the Chapter 11
filing.
On January 3, 2006, the Executive Compensation and Development
Committee of Solutia's Board of Directors approved base salary increases for
certain of its named executive officers and certain other executive officers
who are expected to be included as named executive officers in Solutia's
Form 10-K for the year ended December 31, 2005. As a result of these
increases, the new annual base salaries for these executive officers,
effective January 1, 2006, are as follows:
Name and Title New Base Salary
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Luc DeTemmerman, Senior Vice President and President (euro) 314,875*
- Performance Products
Jonathon P. Wright, Senior Vice President and $375,000
President - Integrated Nylon
James M. Sullivan, Senior Vice President, Chief $360,000
Financial Officer and Treasurer
James R. Voss, Senior Vice President of Business $320,000
Operations
Rosemary Klein, Senior Vice President, Secretary and $275,000
General Counsel
<FN>
*corresponding to $375,000 at the exchange rate of 1.190950
At his request, Jeffry N. Quinn, Solutia's President and Chief
Executive Officer, was not considered by the Executive Compensation and
Development Committee for a base salary increase.
All of the above-referenced officers are employed pursuant to
employment agreements. The salary increases referenced above do not amend or
modify the officers' respective employment agreements in any way.
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE
REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED, THEREUNTO DULY AUTHORIZED.
SOLUTIA INC.
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(Registrant)
/s/ Rosemary L. Klein
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Senior Vice President, General
Counsel and Secretary
DATE: January 9, 2005