Concentrix CNXC board adopts amended severance plan with 2x change-of-control payout and new standalone benefit

In focus for CNXC holders: Concentrix Corporation's board adopted an Amended and Restated Executive Severance Plan on July 23, replacing the company's existing Change of Control Severance Plan. The revision raises the payout floor for executives terminated during a deal window and, for the first time, creates a separate benefit for executives let go outside that window altogether. Both changes are effective as filed with the Securities and Exchange Commission.

What changed inside the change-of-control window

The prior formula paid terminated executives salary continuation based on their three years of past compensation, spread across 18 to 24 months depending on tenure. That sliding scale is gone. The Amended Plan replaces it with two times the sum of the executive's base salary and target bonus, less applicable withholding. The window itself holds: protection covers terminations within two months before or 12 months after a change of control, including voluntary departures triggered by a salary cut, a demotion, or a required relocation.

The new outside-CoC benefit

Concentrix's prior plan offered no coverage to executives terminated when no deal was pending or recently closed. The Amended Plan fills that gap. Executives let go for a reason other than cause, disability, or death, outside the change-of-control window, now receive one times the sum of base salary and target bonus, less applicable withholding.

A "best-net" Section 280G cut-back provision was added alongside that change. The clause limits golden-parachute payouts to the amount that nets the executive the most after federal excise taxes, rather than paying the full figure and leaving the executive to absorb the tax cost alone.

What drove the review

The Compensation Committee of Concentrix's board conducted its regular annual review of the executive compensation program and drew on input from an independent compensation consultant. The stated aim was to bring the company's severance terms in line with market practice for executive officers.

Jane C. Fogarty, Executive Vice President, Legal, signed the filing on July 24. The complete Amended Plan is on file with the SEC as Exhibit 10.1 to the Form 8-K.

What to watch

The plan is adopted and in effect. The next confirmable data point for the setup is the proxy statement or annual report that carries compensation-table figures for named executive officers under the new terms. That disclosure will map the 2x formula to actual base salary and target bonus numbers for each covered executive.