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[8-K] BROWN FORMAN CORP Reports Material Event

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8-K
Rhea-AI Filing Summary

Brown-Forman Corporation adopted an Executive Change in Control Severance Plan effective October 31, 2025. The plan covers members of the executive leadership team, including current named executive officers, and select key employees. It applies to involuntary Qualifying Terminations occurring from 30 days before through 24 months after a change in control.

Severance includes: any earned but unpaid prior-year bonus; a cash payment equal to a severance multiple—3.0x for the CEO and 2.0x for other executive leaders—applied to the sum of annual base salary and the greater of target bonus or the most recently earned bonus; a pro‑rata current‑year bonus; payment equal to 18 months of COBRA premiums; full vesting of nonqualified deferred compensation; up to 12 months of outplacement; a $10,000 lump‑sum tax preparation payment; and full vesting of unvested equity awards. Benefits require execution and non‑revocation of a general release, and the plan supersedes other severance arrangements during the protection period.

Positive
  • None.
Negative
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Insights

Standard CIC protection with defined multipliers and broad vesting.

The plan establishes clear, formulaic severance for executives upon a change in control coupled with involuntary termination. Key mechanics include a 3.0x multiple for the CEO and 2.0x for other executive leaders applied to base salary plus the higher of target or most recently earned bonus, alongside pro‑rata bonus treatment.

Ancillary benefits include 18 months of COBRA premium equivalents, full vesting of nonqualified deferred compensation and equity, up to 12 months outplacement, and a $10,000 tax preparation payment. Eligibility hinges on a Qualifying Termination during the window from 30 days before to 24 months after a change in control and execution of a release.

The structure is typical for large issuers and aims to retain leadership continuity around control events. Actual costs depend on future change‑in‑control outcomes and termination decisions; the filing does not specify additional limits beyond those stated.

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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):
October 31, 2025

Brown-Forman Corporation

(Exact Name of Registrant as Specified in its Charter)
                   

Delaware001-0012361-0143150
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

850 Dixie Highway,Louisville,Kentucky40210
(Address of Principal Executive Offices)(Zip Code)

Registrant’s telephone number, including area code: (502) 585-1100

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:

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))









Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A Common Stock (voting), $0.15 par value
BFANew York Stock Exchange
Class B Common Stock (nonvoting), $0.15 par value
BFBNew York Stock Exchange
1.200% Notes due 2026
BF26New York Stock Exchange
2.600% Notes due 2028
BF28New York Stock Exchange

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Executive Change in Control Severance Plan

On October 31, 2025, the Board of Directors (the “Board”) of Brown-Forman Corporation (the “Company”), as part of its regular review of the Company’s corporate governance documents and executive compensation policies and practices, adopted and approved the Brown-Forman Corporation Executive Change in Control Severance Plan (the “Plan”), effective immediately, to provide for severance pay and benefits to Participants (as defined in the Plan) whose employment is involuntarily terminated due to a Qualifying Termination (as defined in the Plan) during the period commencing thirty (30) days prior to the date a Change in Control (as defined in the Plan) is consummated and ending twenty-four (24) months following the date of such consummation (the “Change in Control Protection Period”). For purposes of the Plan, members of the Company’s executive leadership team, including all of the Company’s current Named Executive Officers (as such term is defined in Item 402 of Regulation S-K), and other select key employees are Participants. The Plan was adopted and approved by the Board in order to, among other things, attract and retain key talent and assure that the Company will have the continued dedication and focus of the Participants, notwithstanding the possibility, threat or occurrence of a Change in Control of the Company.

Upon involuntary termination of a Participant due to a Qualifying Termination that occurs during the Change in Control Protection Period, so long as the Participant satisfies the conditions to payment of severance benefits described below, such Participant shall be entitled to receive the following severance benefits: (i) any annual cash bonus that has been earned but unpaid for the prior fiscal year, (ii) an amount equal to the product of Participant’s (x) severance multiple (3.0 with respect to the Company’s Chief Executive Officer and 2.0 with respect to the other members of the Company’s executive leadership team) and (y) the sum of (1) the Participant’s annual base salary and (2) the greater of the Participant’s then-current target bonus amount and the amount of the Participant’s annual bonus opportunity earned with respect to the Company’s fiscal year ended on or prior to the date of the Participant’s Qualifying Termination date, (iii) a pro-rata portion of the annual bonus for the fiscal year in which the Qualifying Termination occurs based on actual results if determinable (or based on the target level of performance if actual results are not determinable, provided that target shall be assumed for purposes of any individual performance metrics) for such fiscal year, (iv) an amount equal to the aggregate cost of eighteen (18) months of COBRA premiums for continued medical coverage for the Participant and his or her eligible dependents, (v) full vesting of any unvested amounts of nonqualified deferred compensation, (vi) outplacement counseling and associated services in accordance with the Company’s customary practice in effect immediately prior to the consummation of the Change in Control for a period of up to twelve (12) months following the Participant’s Qualifying Termination date, (vii) a $10,000 lump sum tax preparation payment, and (viii) full vesting of any unvested equity awards at the time of the Participant’s Qualifying Termination date.

Payment of the severance benefits under the Plan is subject to the Participant’s execution and non-revocation of a general release of all claims in favor of the Company and certain related parties, which may include confidentiality provisions and post-employment non-disparagement obligations. For Participants who are eligible for severance benefits under another individual agreement with the Company, the Plan will supersede all prior agreements, practices, policies, procedures and plans relating to severance benefits in the event of a Qualifying Termination during the Change in Control Protection Period.

The foregoing description of the Plan does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Plan, a copy of which is attached as Exhibit 10.1 hereto and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d)    Exhibits

Exhibit No.Description
10.1
Brown-Forman Corporation Executive Change in Control Severance Plan, effective as of October 31, 2025.
104Cover Page Interactive Data File (embedded within the Inline XBRL document).





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.


BROWN-FORMAN CORPORATION
(Registrant)
Date: October 31, 2025/s/ Michael E. Carr, Jr.
Michael E. Carr, Jr.
Executive Vice President, General Counsel and Corporate Secretary





                        





FAQ

What did Brown-Forman (BF) announce?

The company adopted an Executive Change in Control Severance Plan effective October 31, 2025, covering executive leaders and select key employees.

Who is covered under Brown-Forman’s new severance plan?

Members of the executive leadership team, including all current named executive officers, and other select key employees.

What is the severance multiple for the CEO and other executives at BF?

The CEO has a 3.0x multiple; other executive leadership team members have a 2.0x multiple.

What is the protection period under the BF change-in-control plan?

From 30 days prior to the consummation of a change in control until 24 months following it.

Which benefits are included besides cash severance at BF?

Pro‑rata current‑year bonus, 18 months of COBRA premiums, full vesting of nonqualified deferred compensation and equity, up to 12 months outplacement, and a $10,000 tax preparation payment.

Are there conditions to receive benefits under BF’s plan?

Yes. Benefits require a Qualifying Termination during the protection period and execution and non‑revocation of a general release.

Does the plan replace other severance agreements at BF?

For eligible participants, it supersedes other severance arrangements in the event of a Qualifying Termination during the protection period.
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