WATTS WATER TECHNOLOGIES,INC. (NYSE:WTS) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02.Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On June11, 2018, Watts Water Technologies,Inc. (the “Company”) announced the appointment of Shashank Patel as the Company’s next Chief Financial Officer effective upon the commencement of his employment with the Company on July2, 2018.
Mr.Patel, age 57, previously worked at Xylem Inc. from the time of its spin-off from ITT Corporation in 2011 until June2018. While at Xylem, Mr.Patel served as Vice President, Finance for Xylem Applied Water Systems, Dewatering and the America’s Commercial Team from July2017 to June2018,Integration Leader for the Sensus business from August2016 to June2017, Vice President, Finance for Global Operations from April2016 to July2016,Interim Chief Financial Officer of Xylem from July2015 to March2016, and Vice President, Finance for the Applied Water Systems division from 2011 to July2015. Mr.Patel also served in several leadership roles in finance, operations and engineering at ITT from 1996 until the spin-off of Xylem in 2011. Xylem is a global designer, manufacturer and equipment and service provider for water and wastewater applications.
Mr.Patel’s initial annual base salary will be $400,000. Mr.Patel will participate in the Company’s Executive Incentive Bonus Plan with a target bonus percentage equal to 60% of his base salary. For 2018, Mr.Patel will receive a guaranteed bonus payment of $85,000 in addition to an amount equal to six months of prorated bonus earned under the Executive Incentive Bonus Plan. The Company has agreed to pay customary, out-of-pocket expenses incurred by Mr.Patel in connection with his relocation to the North Andover, Massachusetts area, or, alternatively, to pay Mr.Patel a lump sum cash payment of $50,000 to cover such expenses. Mr.Patel will be added as a participant under the Executive Severance Plan and be eligible to participate in the Company’s customary employee benefit plans, including medical insurance plans, life insurance plan and retirement savings plan and he will be entitled to an annual Company-paid executive physical examination. The Company will also provide Mr.Patel with a $14,000 annual car allowance and an annual executive financial planning allowance of up to $12,500.
In connection with his hiring, Mr.Patel will be granted (i)shares of restricted stock with a value of $700,000, which will vest 50% per year over two years, (ii)shares of restricted stock with a value of $300,000, which will vest in full on the third anniversary of the commencement of Mr.Patel’s employment with the Company, (iii)shares of restricted stock with a value of $150,000, which will vest 33% per year over three years, and (iv)performance stock units with a value of $150,000, which will vest at the end of 2020. These grants are intended to replace the value of unvested equity grants from Mr.Patel’s prior employer that he forfeited in order to join us.