UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): September 11, 2007
Unum Group
(Exact name of registrant as specified in its charter)
Delaware | 001-11294 | 62-1598430 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
1 Fountain Square
Chattanooga, Tennessee 37402
(Address of principal executive offices)(Zip Code)
(423) 294-1011
(Registrants telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report.)
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 (see General Instruction A.2. below):
¨ | 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 8.01 Other Events.
On September 11, 2007, the Board of Directors of Unum Group (Unum or the Company) approved an equity performance incentive grant (the 2007 Equity Performance Grant or the Grant) for certain executives. Awards will be issued under the Companys Stock Incentive Plan of 2007 which was approved by Unums shareholders in May 2007.
The Boards objective in adopting the 2007 Equity Performance Grant is to more closely align the long-term interests of Unums executive team with those of Unums shareholders through the creation of an incentive program whose value is directly linked to the Companys future stock price. The Grant is available to a group of approximately 50 current executives of the Company who the Board deems to have played a significant role in the Companys accomplishments to date. The Board believes that continuity of this leadership team which the grant is designed to promote is critical to the Companys future success and will benefit all of the Companys stakeholders including customers, employees and shareholders.
Under the program, the participants as a group would be eligible to receive up to a total of 1.26 million Restricted Stock Units (Units), which will be paid in shares of the Companys common stock. Certain operating performance targets for financial results, risk-based capital, financial ratings, and regulatory compliance, must first be achieved before any payout can occur. In addition, the shares will vest according to a schedule of share price appreciation. As the share price increases, so too, will the vesting. Full vesting of the Grant will occur when the Companys share price meets or exceeds $50, or approximately double the Companys current stock price. If fully vested, shareholder value would have increased by approximately $9 billion to a total market value of $17.7 billion and the total value to participants would be $63 million.
A more detailed description of the Companys executive compensation plans will be available in the Companys 2008 proxy statement.
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 hereunto duly authorized.
Unum Group (Registrant) | ||||||||||
Date: September 17, 2007 | By: | /s/ Susan N. Roth | ||||||||
Name: | Susan N. Roth | |||||||||
Title: | Vice President, Transactions, SEC and Corporate Secretary |