Concentrix (NASDAQ: CNXC) revises executive severance and change-of-control protections
Rhea-AI Filing Summary
Concentrix Corporation adopted an Amended and Restated Executive Severance Plan effective July 23, 2026, replacing its prior Change of Control Severance Plan. The Board took this action after an annual review of executive compensation and input from an independent compensation consultant to align severance practices more closely with market practice.
For executive officers terminated without cause, disability, or death (including certain voluntary resignations for reduced salary or position or relocation) within two months before or 12 months after a change of control, severance shifts from 18–24 months of salary continuation based on the past three years’ compensation to a lump sum equal to two times base salary plus target bonus, less applicable withholding. The plan also introduces severance outside the change-of-control window equal to one times base salary plus target bonus, less withholding, and adds a “best-net” Section 280G cut-back provision.
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8-K Event Classification
2 items: 5.02, 9.01
2 items
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Change-of-control protection start: two months before a change of control
Change-of-control protection end: 12 months after a change of control
Prior salary continuation period: 18 to 24 months
+2 more
5 metrics
Change-of-control protection start
two months before a change of control
Qualifying terminations in this period trigger enhanced severance for executive officers
Change-of-control protection end
12 months after a change of control
Qualifying terminations in this period receive change-of-control severance benefits
Prior salary continuation period
18 to 24 months
Earlier plan provided 18–24 months of salary continuation based on years of service
New CoC cash severance multiple
two times base salary and target bonus
Paid in cash for qualifying terminations around a change of control, less withholding
Non-CoC severance multiple
one times base salary and target bonus
Paid for qualifying terminations outside the change-of-control window, less withholding
Key Terms
Amended and Restated Executive Severance Plan, Change of Control Severance Plan, target bonus, best-net Section 280G cut-back provision, +1 more
5 terms
Amended and Restated Executive Severance Plan financial
"the Board adopted an Amended and Restated Executive Severance Plan"
Change of Control Severance Plan financial
"to amend and replace the Company’s Change of Control Severance Plan"
target bonus financial
"an amount equal to two times the sum of the executive officer’s base salary and target bonus"
best-net Section 280G cut-back provision regulatory
"adds (ii) a “best-net” Section 280G cut-back provision"
severance program for executive officers financial
"to align the Company’s severance program for executive officers more closely with market practice"
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What change did Concentrix (CNXC) make to its executive severance plan?
Concentrix adopted an Amended and Restated Executive Severance Plan, replacing its prior Change of Control Severance Plan. The new plan updates cash severance formulas and adds benefits for terminations outside a change-of-control window, based on input from an independent compensation consultant.
How are Concentrix (CNXC) executives compensated if terminated around a change of control?
If an executive is terminated without cause, disability, or death within two months before or 12 months after a change of control, they receive cash severance equal to two times base salary plus target bonus, less applicable withholding, replacing the prior 18–24 months of salary continuation.
Does Concentrix (CNXC) now offer severance for terminations not tied to a change of control?
Yes. The Amended Plan adds severance for executive officers terminated outside the change-of-control window. In those cases, an eligible executive receives a lump sum equal to one times base salary plus target bonus, less applicable withholding, where previously such coverage was not described.
What is the protection window for enhanced severance at Concentrix (CNXC)?
The enhanced change-of-control severance applies when an executive is terminated for qualifying reasons within two months before or 12 months after a change of control. Certain voluntary terminations, such as reduced salary, diminished position, or relocation, are included in these qualifying reasons.
What is the Section 280G feature in Concentrix’s (CNXC) Amended Plan?
The Amended Plan includes a “best-net” Section 280G cut-back provision. This mechanism adjusts change-of-control payments, if necessary, so executives receive the better after-tax result between accepting a reduced payment or paying excise taxes on full parachute payments.
Why did Concentrix (CNXC) revise its executive severance program?
The Board updated the program following an annual review by the Compensation Committee and input from its independent compensation consultant. The stated goal is to align Concentrix’s executive severance program more closely with market practice while formalizing change-of-control and non-change-of-control benefits.