• | Post-offer drug screen; |
• | Provision of the documents necessary to establish your identification and work eligibility under the Immigration Control and Reform Act of 1986; |
• | Non-Competition and Non-Solicitation Agreement (enclosed), as accepted and agreed to by you without any modification to its covenants and provisions; and |
• | Background investigation and/or credit check, if required for your position. You will be provided with additional documentation to complete if either or both of these requirements apply to you. |
1. | Base Salary: You will receive an annual base salary of $625,000 and you will be paid biweekly. Your job is exempt from minimum wage and overtime obligations under the Fair Labor Standards Act. |
2. | Annual Cash Incentive: You will be eligible to participate in Tyson Foods, Inc. Annual Incentive Plan beginning with the FY21 performance period. The current target annual incentive for your role is 110% of your base salary. Annual incentive payments are made under the plan then in effect, and subject to the discretion of senior management along with an assessment of company, business unit/function, and individual performance. You must be an active Tyson Foods employee on the payment date to receive any payout. |
3. | Sign-on Payment: As part of your acceptance of employment with Tyson Foods, you will receive a sign-on payment of $175,000 (less taxes and other applicable withholdings). In consideration of your sign-on payment, you agree and promise to repay Tyson Foods 100% of your sign-on payment amount if you 1) resign or voluntarily terminate employment with Tyson Foods prior to reaching the 12-month anniversary of your start date, or 2) do not relocate to Northwest Arkansas within 12 months from your start date. |
4. | Long Term Stock Incentive: You are eligible to participate in the Tyson Foods long-term incentive (LTI) program. If your start date falls on or before October 3, 2020, you will be eligible to participate in the next annual grant which is expected to occur in November 2020. The current LTI target award for your role is $1,500,000 with a mix of non-qualified stock options, restricted stock and performance shares. All award grants will follow the normal program guidelines and mix aligned with your role in the organization at the time of the grant and are made at the discretion of the company. |
5. | Stock Purchase Plan: Upon reaching your benefits effective date, you will be eligible to participate in the Tyson Foods, Inc. Employee Stock Purchase Plan. You may contribute (on an after-tax basis) up to 20% of your base salary to this plan. After one year of service, Tyson Foods will match 25% of the first 10% of base salary you contribute. This plan provides for 100% immediate vesting of both your contributions and the company match. |
6. | Retirement Savings Plan - 401(k): Upon reaching your benefits effective date, you will be eligible to participate in the 401(k) Retirement Savings Plan of Tyson Foods, Inc. After one year of service, Tyson Foods will match 100% of the first 3% you contribute and 50% of the next 2% you contribute. You may contribute up to 60% of your eligible compensation to this plan until your contributions for the year reach the IRS maximum contribution or maximum compensation limits. This plan provides for 100% immediate vesting of both your contributions and the company match. |
7. | Executive Savings Plan: If you are projected to reach the maximum IRS contribution limits in the Retirement Savings Plan (based on your contribution election to that plan) you can then begin deferring up to 60% of base pay into the Executive Savings Plan of Tyson Foods, a non-qualified deferred compensation plan. This plan is available to highly compensated employees, as defined by IRS regulations, and is available to those who wish to defer additional dollars over and above the IRS limits for qualified plans. You may also defer up to 100% of your annual cash incentive to the plan. All deferrals and payout elections must be elected during the annual election period each December prior to the deferral year. This plan provides company matching contributions in the same manner as the RSP. Additionally, as a member of the Executive Leadership Team, the Executive Savings Plan provides a 4% of your salary and AIP, as they are paid, contribution to your account. |
8. | COBRA: If you elected COBRA continuation coverage through your former employer’s plan(s), Tyson Foods will reimburse you for any premium costs you incur for such coverage until you reach your benefits effective date. The reimbursements will be tax protected at the supplemental tax rates for each taxing jurisdiction. You will be required to provide confirmation of coverage, proof of payment, and the time period covered to Tyson’s Corporate Payroll Department in order to receive your reimbursement. In consideration of the reimbursements, you agree and promise to repay Tyson Foods 100% of the aggregate reimbursement amount you received if you resign or voluntarily terminate employment with Tyson Foods prior to reaching the one-year anniversary of your start date. Your repayment must be received by Tyson Foods within sixty (60) days of your termination date with Tyson Foods. If you fail to repay the aggregate reimbursement amount in full by the deadline, you also agree to pay all reasonable costs and expenses, including but not limited to reasonable attorney’s fees and court costs, which are incurred by Tyson Foods to enforce its rights to repayment. |
9. | Employee Health, Life and LTD Benefits: Upon reaching your benefits effective date, you and your eligible dependents will be able to participate in the Tyson Foods, Inc. Group Health Plan, including medical, dental, vision, and prescription drug coverage. Your premium amount will be deducted from your payroll check on a pre-tax basis. At the time you enroll in the plan, you will also be enrolled in company-paid life insurance and the accidental death and dismemberment plans, each in the amount of one (1) times your annual salary. You will also participate in the company-paid Executive long-term disability insurance program which provides a tax-free benefit of 60% (up to plan limits) of the sum of the following: base pay, most recent annual cash incentive payment, and value of your most recent annual LTI grant. |
10. | Officer Life Benefits: Upon reaching your benefits effective date, you will be eligible for additional company-paid life insurance in the amount of two (2) times your annual base salary (subject to limitations in accordance with the plan). This is in addition to the one (1) times annual salary life under the Group Life Plan. |
11. | Executive Rewards Allowance: Upon hire you will be eligible for the Executive Rewards Allowance, which will provide you an annual cash allowance of $12,000 (paid $461.54 each pay period), prorated based on your start date. The allowance is an additional fringe benefit provided in recognition of the unique needs of an executive level team member beyond the core benefits package. The allowance is taxable income and can be used at your discretion to fund an array of items based upon the needs of you and your family (for example, financial and estate planning, executive physical, cell phone, etc.). There are no claims forms to remit or file. |
12. | Vacation: You will receive four (4) weeks of vacation upon reaching your benefits effective date, then four (4) weeks on your annual service anniversary date thereafter. |
13. | Relocation and Temporary Living. The company agrees to pay the reasonable expenses of relocation to the area of your principal office location according to the Company Relocation Policy. |
14. | Start Date: This will be a mutually agreed upon date and time by the hiring manager and you; provided that, all contingencies and requirements described in this offer letter must be completed (as determined by Tyson Foods) before your employment may commence. |