other material
confidence high
sentiment neutral
materiality 0.55
CoStar amends severance plan, removes director-change clause to avoid activist litigation
COSTAR GROUP, INC.
- Removed the 'director clause' from Change in Control definition in Executive Severance Plan.
- Clause was meant to protect management continuity; removed due to threatened proxy contests by Third Point and D.E. Shaw.
- Board and Compensation Committee unanimously approved original clause but agreed to removal at management's request.
- All other terms of the Amended Severance Plan remain unchanged and in effect.
- Company sought to avoid cost and distraction of an opportunistic Delaware lawsuit.