{"id":39936,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/executive-severance-plan-fluor-corp.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"executive-severance-plan-fluor-corp","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/executive-severance-plan-fluor-corp.html","title":{"rendered":"Executive Severance Plan – Fluor Corp."},"content":{"rendered":"
                      FLUOR CORPORATION AND SUBSIDIARIES\n                              Management  Manual\n\n<\/pre>\n\n                                                            
\n=====================================================================================<\/p>\n
     Section:    Compensation                                  Page:            129<\/p>\n
     Subject:    EXECUTIVE SEVERANCE PLAN                      Effective:  07-21-99<\/p>\n
     Applies To: Fluor Corporation and Selected Subsidiaries   Supersedes: 10-20-98<\/p>\n
=====================================================================================
\n<\/c><\/s><\/table>\n
     OBJECTIVE<\/p>\n
     To provide severance compensation to eligible executives of Fluor
\n     Corporation and designated subsidiaries (the company) who leave the
\n     company, depending on the circumstances and conditions leading to
\n     termination.<\/p>\n
     ELIGIBILITY<\/p>\n
     Executives of Fluor Corporation and designated subsidiaries actively at
\n     work who are participants in the Fluor Corporation and Subsidiaries
\n     Executive Incentive Compensation Plan.<\/p>\n
     DEFINITIONS<\/p>\n
     For the purpose of the Plan, the following definitions apply:<\/p>\n
          A.   VOLUNTARY SEPARATION<\/p>\n
               Action taken by an executive for personal reasons, to seek other
\n               employment, to accept another position, for failure to return at
\n               conclusion of leave, or to voluntarily retire.<\/p>\n
          B.   INVOLUNTARY SEPARATION<\/p>\n
               1.  Action taken by the company due to reduction in force
\n                   resulting from reorganization or reduced workload or other
\n                   similar circumstances whereby the executive’s services are no
\n                   longer required on the job. Executives involuntarily
\n                   separated who meet the retirement criteria may elect
\n                   retirement.<\/p>\n
               2.  Action taken by the company when an executive is covered by
\n                   the Americans with Disabilities Act and is unable to perform
\n                   his\/her essential job functions with reasonable
\n                   accommodation.<\/p>\n
          C.   INVOLUNTARY DISCHARGE<\/p>\n
                   Action taken by the company for reasons other than stated in
\n                   Paragraph B. above including but not limited to absenteeism,
\n                   misconduct, insubordination, appearing at work under the
\n                   influence of a controlled substance or alcohol, unethical
\n                   behavior, disclosure of confidential information, sexual
\n                   harassment, employment discrimination, or unsatisfactory
\n                   performance.<\/p>\n
                      FLUOR CORPORATION AND SUBSIDIARIES
\n                               Management Manual<\/p>\n
\n=====================================================================================
\n                                                            
\n     Section:    Compensation                                  Page:            130<\/p>\n
     Subject:    EXECUTIVE SEVERANCE PLAN                      Effective:  07-21-99
\n              (Continued)<\/p>\n
     Applies To: Fluor Corporation and Selected Subsidiaries   Supersedes: 10-20-98<\/p>\n
=====================================================================================
\n<\/c><\/s><\/table>\n
              D.   OFFICER<\/p>\n
                   An executive who is a vice president or above of Fluor
\n                   Corporation, Fluor Daniel, Inc., Fluor Signature Services,
\n                   Fluor Global Services, Inc., or Fluor Constructors, Inc., who
\n                   participates in the Fluor Corporation and subsidiaries
\n                   Executive Incentive Compensation Plan.<\/p>\n
              E.   COMPLETED YEARS OF ACCUMULATED SERVICE<\/p>\n
                   A period of accumulated service with the company, subject to
\n                   the limitation set forth under Procedure, A.4.c.<\/p>\n
              F.   BENEFICIARY<\/p>\n
                   The beneficiary designated by the executive under the Fluor
\n                   Corporation Employee’s Retirement Plan, or, if no such
\n                   designation has been made, then as designated under the Group
\n                   Life\/Health Insurance Plan unless the executive otherwise
\n                   makes a beneficiary designation on the form provided by the
\n                   executive’s corporate employer, or, in the absence of any
\n                   designation, the administrator or executor of the executive’s
\n                   estate.<\/p>\n
     PROCEDURE<\/p>\n
              A.   SEVERANCE PAY<\/p>\n
                   1.   Voluntary Separation<\/p>\n
                        The company will not provide severance pay nor prorated
\n                        Incentive Compensation (Paragraph A under
\n                        “Definitions”).<\/p>\n
                   2.   Involuntary Separation<\/p>\n
                        Severance pay will be based on current base salary and
\n                        total completed years of accumulated service as follows:<\/p>\n
                        a.   Officers<\/p>\n
                             1.   Two weeks’ severance pay for each completed
\n                                  year of accumulated service up to 52 weeks.<\/p>\n
                             2.   Minimum eight weeks’ severance.<\/p>\n
                      FLUOR CORPORATION AND SUBSIDIARIES
\n                              Management  Manual<\/p>\n
\n                                                            
\n=====================================================================================<\/p>\n
     Section:    Compensation                                  Page:            131<\/p>\n
     Subject:    EXECUTIVE SEVERANCE PLAN                      Effective:  07-21-99
\n              (Continued)<\/p>\n
     Applies To: Fluor Corporation and Selected Subsidiaries   Supersedes: 10-20-98<\/p>\n
=====================================================================================
\n<\/c><\/s><\/table>\n
                    b.   Non-Officer Executives<\/p>\n
                         1.   Two weeks’ severance pay for each completed year
\n                              of accumulated service up to 26 weeks.<\/p>\n
                         2.   Minimum four weeks’ severance<\/p>\n
               3.   Involuntary Discharge<\/p>\n
                    a.   The company will not provide severance pay nor consider
\n                         proration of Incentive Compensation (Paragraph C,
\n                         Definitions).<\/p>\n
               4.   Limitations<\/p>\n
                    a.   Maximum severance pay will be 52 weeks for officers, 26
\n                         weeks for non-officer executives.<\/p>\n
                    b.   Minimum severance pay will be eight weeks for officers,
\n                         four weeks for non-officer executives.<\/p>\n
                    c.   The total completed years of accumulated service
\n                         calculated for a severance payment may only be used one
\n                         time in severance calculations.<\/p>\n
                    d.   For executives involuntarily separated and placed on
\n                         Leave of Absence in Lieu of Layoff, severance pay will
\n                         be based on completed years of accumulated service up
\n                         to the effective date of the Leave of Absence.<\/p>\n
                    e.   Officers in policy making positions who meet retirement
\n                         criteria will receive severance pay as follows:<\/p>\n
                         1.   Officers who meet the minimum retirement income
\n                              requirement set forth by federal law, excluding
\n                              any amount payable under this Plan, will receive
\n                              severance pay for only the period from the date of
\n                              termination until January 2 following the
\n                              officer’s 65th birthday subject to the limitation
\n                              set forth under Procedure, A.2.a.<\/p>\n
                         2.   Officers who do not meet the minimum retirement
\n                              income requirement set forth by federal law,
\n                              computed excluding any amount payable under this
\n                              Plan, will receive severance pay as determined
\n                              under Procedure, A.2.a.<\/p>\n
                      FLUOR CORPORATION AND SUBSIDIARIES
\n                               Management Manual<\/p>\n
\n                                                            
\n=====================================================================================<\/p>\n
     Section:    Compensation                                  Page:            132<\/p>\n
     Subject:    EXECUTIVE SEVERANCE PLAN                      Effective:  07-21-99
\n              (Continued)<\/p>\n
     Applies To: Fluor Corporation and Selected Subsidiaries   Supersedes: 10-20-98<\/p>\n
=====================================================================================
\n<\/c><\/s><\/table>\n
               f.   In the case of involuntary separation due to an executive’s
\n                    inability to perform his\/her essential job functions with
\n                    reasonable accommodation, the executive’s severance pay
\n                    amount will be reduced by the expected entitlements under
\n                    Fluor’s short-term and long-term disability for the number
\n                    of weeks determined under Procedure A.2.a and b. If the
\n                    actual entitlements received by the employee are less than
\n                    that deducted from severance pay, the employee will be paid
\n                    the difference for the period of weeks for which the
\n                    employee received severance. This provision is not intended
\n                    to affect any state or federal benefits to which the
\n                    executive may be entitled.<\/p>\n
               g.   In cases where the executive is entitled to legislated
\n                    severance pay in non-U.S. countries, executive’s severance
\n                    pay amount will be reduced by any legislated severance
\n                    payments required of the company that are calculated with
\n                    reference to the number of weeks determined under Procedure
\n                    A.2.a and b.<\/p>\n
          5.    Severance pay will be paid in a lump sum, or at the discretion
\n                of the company, annual installments over a period not to exceed
\n                the total number of weeks determined under Paragraph A.2.a. and
\n                b. above.<\/p>\n
          6.    In event of an executive’s death prior to payment of the entire
\n                entitlement, payment may be made to the designated beneficiary
\n                in one lump sum or by continuation of installments at the
\n                discretion of the executive’s corporate employer.<\/p>\n
B.   INCENTIVE COMPENSATION<\/p>\n
               (As defined in the Executive Incentive Compensation Plan, Fluor
\n               Corporation and Subsidiaries Management Manual)<\/p>\n
          1.   Voluntary Separation<\/p>\n
               The company will not provide a prorated incentive award.<\/p>\n
          2.   Involuntary Separation<\/p>\n
               Incentive Compensation may be considered based on the number of
\n               completed months of service during the current fiscal year prior
\n               to termination and consistent with the administration of the Plan
\n               during the year of termination.<\/p>\n
                      FLUOR CORPORATION AND SUBSIDIARIES
\n                               Management Manual<\/p>\n
\n=====================================================================================
\n                                                            
\n     Section:    Compensation                                  Page:            133<\/p>\n
     Subject:    EXECUTIVE SEVERANCE PLAN                      Effective:  07-21-99
\n              (Continued)<\/p>\n
     Applies To: Fluor Corporation and Selected Subsidiaries   Supersedes: 10-20-98<\/p>\n
=====================================================================================
\n<\/c><\/s><\/table>\n
               3.   Involuntary Discharge<\/p>\n
                    The company will not provide a prorated incentive award.<\/p>\n
          C.   COMPANY AUTOMOBILES<\/p>\n
                    In company locations where officers\/directors may be
\n                    assigned company-owned automobiles, the following will
\n                    apply:<\/p>\n
                    a.   Voluntary Separation<\/p>\n
                         Officers\/directors who voluntarily retire will be
\n                         presented with the automobile that is currently
\n                         assigned as a gift.<\/p>\n
                    b.   Involuntary Separation <\/p>\n
                         Officers\/directors who are requested to take early
\n                         retirement will be presented with the automobile which
\n                         is currently assigned as a gift.<\/p>\n
                    c.   Involuntary Discharge<\/p>\n
                         Officers\/directors will not be given an automobile, and
\n                         it will not be available for purchase.<\/p>\n
               D.   CLUB MEMBERSHIP<\/p>\n
                    Company memberships will not be awarded to an executive
\n                    regardless of reason for termination.<\/p>\n
               E.   AUTOMOBILE ALLOWANCE<\/p>\n
                    1.   In locations where executives receive a car
\n                         allowance\/insurance, the following will apply:<\/p>\n
                         a.   Voluntary Separation<\/p>\n
                         The company will not provide a car allowance\/insurance.<\/p>\n
                      FLUOR CORPORATION AND SUBSIDIARIES
\n                               Management Manual<\/p>\n
\n=====================================================================================
\n                                                            
\n     Section:    Compensation                                  Page:            134<\/p>\n
     Subject:    EXECUTIVE SEVERANCE PLAN                      Effective:  07-21-99
\n              (Continued)<\/p>\n
     Applies To: Fluor Corporation and Selected Subsidiaries   Supersedes: 10-20-98<\/p>\n
=====================================================================================
\n<\/c><\/s><\/table>\n
               b.   Involuntary Separation<\/p>\n
                    The company will not provide a car
\n                    allowance\/insurance.<\/p>\n
               c.   Involuntary Discharge
\n                    The company will not provide a car
\n                    allowance\/insurance.<\/p>\n
          F.   INSURANCE COVERAGE<\/p>\n
                    Applicable insurance coverage, i.e., group health, long-term
\n                    disability, executive health, etc., will cease on date of
\n                    termination. Where applicable, departing executive may elect
\n                    continued coverage through the Consolidated Omnibus Budget
\n                    Reconciliation Act (COBRA).<\/p>\n
          G.   TIME OFF WITH PAY (TOWP) PROGRAM<\/p>\n
                    Balance will be paid at time of termination.<\/p>\n
          H.   STOCK BASED AWARDS<\/p>\n
                    1.   Voluntary Separation<\/p>\n
                         Upon qualified retirement, awards become
\n                         100 percent vested.<\/p>\n
                    2.   Involuntary Separation<\/p>\n
                         Upon qualified retirement, awards become 100 percent
\n                         vested.<\/p>\n
                    3.   Involuntary Discharge<\/p>\n
                         Vested portion may be exercised.<\/p>\n
          I.   LONG TERM INCENTIVE (LTI) PROGRAM<\/p>\n
                    Applicable cash awards under the long-term incentive program
\n                    will not be prorated for any reason, except death or total
\n                    and permanent disability.<\/p>\n
                      FLUOR CORPORATION AND SUBSIDIARIES
\n                               Management Manual<\/p>\n
\n=====================================================================================
\n                                                            
\n     Section:    Compensation                                  Page:            135<\/p>\n
     Subject:    EXECUTIVE SEVERANCE PLAN                      Effective:  07-21-99
\n              (Continued)<\/p>\n
     Applies To: Fluor Corporation and Selected Subsidiaries   Supersedes: 10-20-98<\/p>\n
=====================================================================================
\n<\/c><\/s><\/table>\n
               J.   WAIVERS<\/p>\n
                    A settlement agreement and release form must be obtained
\n                    from employees in exchange for severance benefits. No
\n                    severance benefit will be due employees unless a settlement
\n                    and release agreement provided by the company has been
\n                    properly executed.<\/p>\n
               K.   OUTPLACEMENT<\/p>\n
                    In-house outplacement services are available.<\/p>\n
               L.   PLAN TERMINATION<\/p>\n
                    This Plan will expire December 31st., 2000. Any executive
\n                    whose employment terminates after the Plan expires, will not
\n                    be eligible for participation in the Plan. Further, no
\n                    benefits will accrue or be payable under the Plan after Plan
\n                    Termination.<\/p>\n
               M.   EXCEPTION<\/p>\n
                    Approved by the Chief Executive Officer of Fluor
\n                    Corporation.<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[7556],"corporate_contracts_industries":[9479],"corporate_contracts_types":[9539,9551],"class_list":["post-39936","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-fluor-corp","corporate_contracts_industries-construction__construction","corporate_contracts_types-compensation","corporate_contracts_types-compensation__severance"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/39936","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=39936"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=39936"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=39936"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=39936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}