EVERTEC, Inc. (NYSE:EVTC) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

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EVERTEC, Inc. (NYSE:EVTC) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On November 10, 2017 the Compensation Committee (the “Committee”) recommended and the Board of Directors (the “Board”) of Evertec Inc. (the “Company”) approved a one-time special grant of restricted stock units (“RSUs”) and subject to the Company’s 2013 Equity Incentive Plan as a retention grant (“Retention Grant”) to all of its executives and other key employees. The Committee believes that this action is necessary to assist the Company in retaining key individuals in light of the humanitarian disaster caused by the direct hit of Hurricane Maria in Puerto Rico. The hardships associated with this catastrophic event have severely heightened the possibility that executives and key employees may entertain and accept offers from competitors located outside Puerto Rico, and in particular in the United States.

The RSUs under the Retention Grant shall be granted on November 20, 2017 and the number of RSUs granted shall be based on the Company’s closing common stock price on the grant date. These RSUs will be subject to time-based restrictions and will vest 40% on the second anniversary and 60% on the third anniversary of the date of the grant. The following table sets forth the total award value approved for the Retention Grant for each of the following executives (who are our “named executive officers” under SEC rules):

Named Executive Officer

Retention Grant Award Value ($)

Morgan M. Schuessler, Jr.

3,000,000

Peter J.S. Smith

1,000,000

Miguel Vizcarrondo

500,000

Philip E. Steurer

500,000

On November 10, 2017, the Committee also recommended and the Board approved an adjustment to the calculation of the executives’ annual cash bonus for 2017 (the “Cash Bonus Adjustment”). As disclosed in the Company’s 2017 Proxy Statement dated May 25, 2017, the target annual cash bonus as a percentage of salary is a mix between corporate performance, business metric and individual performance for the relevant year. The approved adjustment consists in evaluating those targets as of a date prior to the Hurricanes Irma and María and annualizing the results for purposes of payment of the 2017 cash bonus, subject to a cap of 50% of the original target bonus percentage. The Committee and the Board considered various factors, including the fact that the executives were on track to surpass certain of the relevant performance metrics prior to the hurricanes and that the executives performed admirably during and immediately after the hurricanes. Even though the Cash Bonus Adjustment was approved in November, the Committee will still make all 2017 cash bonus evaluations and final decisions in a meeting during the first quarter after the end of the Company’s 2017 fiscal year as it normally does.

The Committee recommended the Retention Grants and the Cash Bonus Adjustments to the Board after consultation with and the recommendation of the Company’s independent compensation consulting firm Frederic W. Cook & Co., Inc.


About EVERTEC, Inc. (NYSE:EVTC)

EVERTEC, Inc., formerly Carib Latam Holdings, Inc., is a full-service transaction processing company. The Company provides a range of merchant acquiring, payment processing and business process management services. It has three segments: Merchant Acquiring, Payment Processing and Business Solutions. It provides services to merchants that allow them to accept electronic methods of payment, such as debit, credit, prepaid and electronic benefit transfer cards, carrying the ATH, Visa, MasterCard, Discover and American Express brands. It provides a suite of payment processing products and services to blue chip regional and global corporate customers, government agencies and financial institutions across Latin American and the Caribbean. It provides a suite of business process management solutions, which include core bank processing, network hosting and management, information technology (IT) consulting services, business process outsourcing, item and cash processing, and fulfillment.

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