Career Education Corporation Files Form 8-K
Career Education Corporation (NASDAQ:CECO) filed a Current Report on Form 8-K today with the Securities and Exchange Commission, attaching as an exhibit to the Report the company’s employment agreement with its new president and chief executive officer, Gary E. McCullough.
In connection with McCullough’s appointment as president and chief executive officer, the company’s board of directors awarded McCullough stock options and restricted stock. These awards include options to purchase a total of 202,550 shares of common stock and 52,500 shares of restricted stock awarded under the Career Education Corporation 1998 Employee Incentive Compensation Plan, as amended (the “Plan”) and an additional 55,350 shares of restricted stock granted as an inducement award outside of the Plan and without shareholder approval pursuant to Section 4350(i)(1)(A)(iv) of the NASDAQ Marketplace Rules. Fifty percent (50%) of the restricted shares under the inducement award vest on the first anniversary of the date of grant, and the remaining fifty percent (50%) of the restricted shares vest on the second anniversary of the grant date, subject, in each case, to McCullough’s continued employment with the company. Pursuant to the terms of the employment agreement with McCullough, the restricted stock granted under the inducement award will become fully vested if the company experiences a change in control event (as defined in the Plan), if McCullough’s employment is terminated as a result of his death or disability, if McCullough terminates his employment for good reason, or if the company terminates McCullough’s employment other than for cause.
About Career Education Corporation
The colleges, schools and universities that are part of the Career Education Corporation (CEC) family offer high quality education to almost 90,000 students across the world in a variety of career-oriented disciplines. The 75-plus campuses that serve these students are located throughout the U. S., and in Canada, France, Italy and the United Kingdom, and offer doctoral, master’s, bachelor’s, and associate degrees and diploma and certificate programs. Approximately one third of students attend the web-based virtual campuses of American InterContinental University Online and Colorado Technical University Online.
Career Education is an industry leader whose gold-standard brands are recognized globally. Those brands include, among others, the Le Cordon Bleu Schools North America; the Harrington College of Design; the Brooks Institute of Photography; the Katharine Gibbs Schools; American InterContinental University; Colorado Technical University and Sanford-Brown Institutes and Colleges. The mission of CEC, through its schools, its educators, and its employees is education–their primary goal, to enable students to graduate successfully and pursue rewarding careers.
For more information see www.careered.com. The company’s website also has a detailed listing of individual campus locations and web links for its 75-plus colleges, schools and universities.