UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 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): December 2,
2008
FREEPORT-McMoRan
COPPER & GOLD INC.
(Exact
name of registrant as specified in its charter)
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Delaware
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1-9916
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74-2480931
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(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS
Employer Identification Number)
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One
North Central Avenue
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Phoenix,
Arizona
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85004-4414
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant's
telephone number, including area code: (602) 366-8100
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))
Item
5.02. Departure of Directors or
Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.
(e) Executive Change of Control
Agreements
The Board
of Directors of Freeport-McMoRan Copper & Gold Inc. (FCX) approved effective
December 2, 2008, amendments to the change of control agreements with each of
James R. Moffett, Chairman of the Board, and Michael J. Arnold, Executive Vice
President & Chief Administrative Officer. These amended
agreements supersede the change of control agreement entered into between FCX
and Mr. Moffett dated April 30, 2001 and amended December 10, 2003, and the
change of control agreement entered into between FCX and Mr. Arnold dated
February 3, 2004, which agreements expire on December 31, 2008.
The
amended agreements will provide continued change of control protections for Mr.
Moffett for a term that coincides with his employment agreement, which is
currently subject to annual renewals, and for Mr. Arnold through December 31,
2011. In the event of a change of control of FCX, the agreements will
expire on the later of the original term or three years following the change of
control. The amended agreements are substantially similar to the
superseded agreements, except that the amendments (1) eliminate the excise tax
gross-up previously provided to the executives, (2) eliminate the executives’
ability to receive benefits for a voluntary termination during a specified
window period, (3) clarify the definition of “bonus” used in calculating the
lump sum payment due upon certain terminations of employment, and (4) make
certain other clarifying modifications and changes to comply with Section 409A
of the Internal Revenue Code.
The
foregoing summary of the terms of the respective change of control agreements is
not intended to be complete, and is qualified in its entirety by reference to
the full text of the agreements.
Amendments
to Executive Compensation Plans and Agreements
The FCX
Board of Directors effective December 2, 2008 amended the 2005 Annual Incentive
Plan, the Long-Term Performance Incentive Plan, the Supplemental Executive
Retirement Plan and other compensation plans and arrangements to comply with
Section 409A of the Internal Revenue Code. The FCX Board of Directors
also amended the 2005 Annual Incentive Plan to eliminate the ability of
participants to elect to receive a portion of their cash bonus in a form other
than cash. This amendment was adopted in connection with the discontinuation of
the program that allowed senior personnel to elect to receive all or a portion
of their annual cash bonus in restricted stock units at a 50% premium to market
value.
The FCX
Board of Directors effective December 2, 2008, approved technical amendments to
the current executive employment agreements with each of James R. Moffett,
Chairman of the Board, Richard C. Adkerson, President & Chief Executive
Officer, and Kathleen L. Quirk, Executive Vice President, Chief Financial
Officer & Treasurer, to comply with the requirements of Section 409A of the
Internal Revenue Code and to clarify certain provisions in the agreement,
including the method of calculating the “pro-rata” bonus and the meaning of
“bonus” in the calculation of lump sum payment due upon certain terminations of
employment. The FCX Board of Directors also approved amendments to
Mr. Moffett’s employment agreement to modify provisions to conform to the
executive employment agreements that FCX entered in January 2008, including the
following: (1) elimination of the additional cash payment of $1.8 million
previously provided to the executive in connection with a termination of
employment due to death, disability or retirement, (2) revision of the method of
calculating the cash payment due in the event of a termination of employment due
to reasons other than death, disability, cause or good reason, to be equal to
three times the sum of the executive’s base salary in effect on the termination
date and the average (instead of the highest) of the bonuses paid to the
executive for the immediately preceding three fiscal years, and (3) addition of
a customary nondisparagement covenant. The amended agreement amends
and restates the employment agreement entered into between FCX and Mr. Moffett
dated April 30, 2001 and amended December 10, 2003. The original term
of Mr. Moffett’s amended agreement expires December 31, 2008, but will
automatically extend for additional one-year terms unless prior written notice
is given by the Corporate Personnel Committee that it does not wish to extend
the agreement.
The
foregoing summary of the amendments to the plans and employment agreements is
not intended to be complete, and is qualified in its entirety by reference to
the full text of the plans and agreements.
Item
8.01. Other
Events.
On
December 3, 2008, FCX announced revised operating plans in response to the
recent sharp decline in copper and molybdenum prices to incorporate reduced
production levels, operating and administrative costs, exploration costs and
capital expenditures. A copy of the press release relating to this
announcement is attached as Exhibit 99.1.
FCX
presented slides on its web site that accompanied a conference call held on
December 3, 2008 (see exhibit 99.2).
Item
9.01. Financial Statements and
Exhibits.
(d) Exhibits.
The
Exhibit included as part of this Current Report is listed in the attached
Exhibit Index.
SIGNATURE
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.
FREEPORT-McMoRan
COPPER & GOLD INC.
By: /s/
C. Donald Whitmire, Jr.
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C. Donald
Whitmire, Jr.
Vice
President and Controller -
Financial
Reporting
(authorized
signatory and
Principal
Accounting Officer)
Date: December
4, 2008
Freeport-McMoRan
Copper & Gold Inc.
Exhibit
Index
Exhibit
Number
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Press
release dated December 3, 2008, titled “Freeport-McMoRan Copper & Gold
Inc. Announces Revised Operating Plans in Response to Weak Market
Conditions.”
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Slides
presented in conjunction with December 3, 2008, FCX conference call
conducted via the internet.
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