Rent-A-Center, Inc. (NASDAQ:RCII) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02
Joel M. Mussat resigned his position as Executive Vice President – Chief Operating Officer of Rent-A-Center, Inc. (the “Company”) effective as of February22, 2018. Mr.Mussat’s resignation is a termination without “cause” to Section3(a) of the executive transition agreement between Mr.Mussat and the Company. Accordingly, Mr.Mussat is entitled to certain payments and benefits including:
| • | unpaid but earned cash compensation through February22, 2018; and |
| • | one and one half times the sum of Mr.Mussat’s highest annual rate of salary during the previous 24 months. |
The form of executive transition agreement to which Mr.Mussat is a party is filed as Exhibit 10.24 to the Company’s Annual Report on Form 10-K for the year ended December31, 2016.
In addition, Mr.Mussat will comply for a period of two (2)years with certain post-employment covenants, including non-compete and confidentiality obligations, to the loyalty and confidentiality agreement between Mr.Mussat and the Company. The form of loyalty and confidentiality agreement to which Mr.Mussat is a party is filed as Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the year ended December31, 2016.
As part of the Company’s ongoing cost-savings initiatives, the position of Chief Operating Officer has been eliminated and Mr.Mussat’s direct reports will now report to Mitchell E. Fadel, Chief Executive Officer of the Company, effective immediately.
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About Rent-A-Center, Inc. (NASDAQ:RCII)
Rent-A-Center, Inc. is a rent-to-own operator in North America. The Company provides an opportunity to obtain ownership of products, such as consumer electronics, appliances, computers (including tablets), smartphones and furniture (including accessories), under rental purchase agreements. The Company operates in four segments: Core U.S., Acceptance Now, Mexico and Franchising. Its Core U.S. and Mexico stores generally offer merchandise from over five basic product categories: consumer electronics, appliances, computers (including tablets), smartphones and furniture (including accessories). The Acceptance Now segment provides an on-site rent-to-own option at a third-party retailer’s location. Its Franchising segment engages in the sale of rental merchandise to its franchisees who, in turn, offer the merchandise to the general public for rent or purchase under a rent-to-own transaction. It offers brands, such as LG, Frigidaire, Acer, Apple, Asus, Samsung, Ashley, Powell and Standard.
