Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers.
In connection with its succession
planning responsibilities, on June 5, 2019, the Board of Directors (the “
Board
”) of Alliance Data Systems Corporation (the “
Company
”) appointed Melisa A. Miller,
who successfully led Alliance Data’s Card Services
business as President for 8 years, as Alliance Data’s new President and Chief Executive Officer, succeeding Ed Heffernan, who announced his resignation
as
President and Chief Executive Officer and as a Director of the Company. Ms. Miller, 60, has also been appointed to the Alliance Data Board of Directors
.
In July 2018, the Company announced
that Charles L. Horn would retire as Executive Vice President and Chief Financial Officer in 2019. On June 5, 2019, the Board appointed Timothy P. King, 56, who has served as Senior Vice President, Chief Administrative Officer and Chief
Financial officer of the Company’s Card Services segment since 2012 and a Director for both Comenity Bank and Comenity Capital Bank, as Executive Vice President and Chief Financial Officer of the Company. Mr. Horn
has been appointed to
serve on an interim basis as Vice Chairman as the Company undergoes transitions leading up to and following the anticipated completion of the previously announced sale of the Epsilon
®
business. Mr. Horn’s responsibilities in the
newly-created officer position include oversight of the Epsilon disposition process as well as various related initiatives designated by the Company’s Board.
Joseph Motes, 57, currently the Company’s General Counsel and Secretary, will serve as Alliance Data’s Chief Administrative Officer, in which
capacity he will oversee a number of the Company’s internal corporate functions in addition to his continuing responsibilities as General Counsel.
Board Chairman Rob Minicucci will, on an interim basis, personally oversee Alliance Data’s leadership in connection with transitions at the
Company related to the Epsilon disposition and other Board initiatives, with members of the leadership team reporting to him.
On June 5, 2019, the Company entered
into a Retirement Agreement (the “
Retirement Agreement
”) with Mr. Heffernan. Pursuant to the Retirement Agreement, Mr. Heffernan will receive a cash payment in the aggregate amount of $3,256,200 and accelerated vesting of certain restricted
stock units originally scheduled to vest in February 2020 in consideration of his broad release of the Company and his agreements not to disparage or disclose confidential information and to provide cooperation as permitted in certain matters.
In addition, all other unvested equity awards were forfeited and Mr. Heffernan’s Change in Control Severance Protection Agreement with ADS Alliance Data Systems, Inc. dated December 13, 2016 was canceled. The foregoing summary of the Retirement
Agreement is qualified in its entirety by reference to the full text of such agreement, a copy of which is attached as Exhibit 10.1 hereto and incorporated by reference herein.