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September 13, 2010 at 08:00 PM
Aon Corp. (NYSE:AON) is giving more details about how it intends to handle the executives it expects to get when it closes on Hewitt Associates Inc. (NYSE:HEW)
Aon, Chicago, an insurance broker with a large consulting arm, announced plans in July to acquire Hewitt, Lincolnshire, Ill., a human resources consulting and benefits administration, for about $4.9 billion in cash and stock.
Aon said at the time that Hewitt Chairman Russell Fradin would become chairman of a new Aon Hewitt consulting unit and report to Aon Corp. Chief Executive Gregory Case.
Fradin now has a contract provision that requires an acquirer to pay him a substantial sum if it gets control over Hewitt. Fradin has agreed to a 5-year employee agreement that will covert much of the Hewitt “change in control” compensation into Aon restricted units that will be distributed only when he leaves Aon, Aon says.
