On July 8, 2020, Michael E. LaRocco, Chief Executive Officer and President of State Auto Financial Corporation (“STFC”), entered into an amendment of employment agreement (the “Amended>Agreement”) with STFC, State Auto Property and Casualty Insurance Company and State Automobile Mutual Insurance Company (collectively, the \”Company\”). The Amended Agreement supersedes and replaces specific provisions of the previous employment agreement between Mr. LaRocco and the Company, dated November 28, 2017 (the \”Current Agreement\”). Under the Amended Agreement, Mr. LaRocco will continue to serve as the Company\’s Chief Executive Officer and President through December 31, 2022.
to the Amended Agreement, Mr. LaRocco received a one-time special equity award in the form of deferred stock units (\”DSU\’s\”) with the following terms: (a) a date of grant of July 8, 2020; (b) a fair market value equal to $500,000, based upon the closing price of the Company\’s common shares on the date of grant; and (c) subject to a time-based vesting schedule under which one-half of the DSU\’s vest on December 31, 2021 and the remaining DSU\’s vest on December 31, 2022; provided that the DSU\’s will vest on an accelerated basis in the event of the CEO\’s death or Disability (as defined in the Current Agreement) prior to a regular vesting date.
Except as described above, the provisions of the Amended Agreement are substantially the same as those contained in the Current Agreement. The foregoing description of the Amended Agreement does not purport to be complete and is qualified in its entirety by reference to the complete text of the Amended Agreement, a copy of which is attached hereto as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.
On July 9, 2020, the Company issued a press release announcing the entry into the Amended Agreement. A copy of the press release is filed as Exhibit 99.1 hereto and incorporated by reference herein.
EXHIBIT INDEX
State Auto Financial CORP ExhibitEX-10.1 2 exhibit101larocco2020.htm EXHIBIT 10.1 Exhibit EXHIBIT 10.1AMENDMENT TOEMPLOYMENT AGREEMENTThis Amendment to Employment Agreement (this “Amendment”) is made as of July 8,…
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About STATE AUTO FINANCIAL CORPORATION (NASDAQ:STFC)
State Auto Financial Corporation (State Auto Financial) is a property and casualty insurance holding company. The Company is engaged in writing personal, business and specialty insurance. Its segments include personal insurance, business insurance, specialty insurance and investment operations. Its personal insurance, business insurance and specialty insurance are known as insurance segments of the Company. It writes standard insurance covering personal exposures to individuals in the personal insurance segment. The Company writes insurance covering small-to-medium sized commercial exposures in the business insurance segment. The specialty insurance segment offers commercial coverages requiring product underwriting, claims handling and/or risk management services through a distribution channel of retail agents and wholesale brokers, which include program administrators and other sources. Its investment portfolio is managed by its subsidiary, Stateco Financial Services, Inc.
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