Corporate GovernanceMay 27, 2026, 04:32 PM
Solventum Adopts New Executive Severance Plan
AI Summary
Solventum Corporation adopted a new Executive Severance Plan, effective June 1, 2026, which supersedes the prior plan from April 1, 2024. The plan provides severance payments and benefits, including 9 to 24 months of base salary, continued incentive compensation, and medical/dental coverage, for eligible employees in cases of involuntary termination or voluntary termination for good reason. Notable changes include 12 months of base salary for direct reports of the CEO (with some executives retaining 18 months for two years) and a lump-sum COBRA payment for the CEO and direct reports.
Key Highlights
- New Solventum Executive Severance Plan adopted, effective June 1, 2026.
- Replaces the prior Executive Severance Plan from April 1, 2024.
- Provides 9 to 24 months of base salary as cash severance for eligible participants.
- CEO direct reports receive 12 months base salary plus prorated incentive compensation.
- Certain executive officers retain 18 months base salary eligibility for two years.
- CEO and direct reports get lump-sum for COBRA medical and dental premiums.
- Post-effective date equity awards are forfeited; pre-effective date awards have limited vesting.
- Preserves grandfathered rights for existing compensation and equity arrangements.
Price Impact
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