Philip Morris International Inc. reported a compensatory and separation arrangement tied to the previously announced transition in its finance leadership. The company said its board had earlier approved the appointment of Massimo Andolina, currently President, Europe Region, as Group Chief Financial Officer, replacing Emmanuel Babeau effective August 1, 2026. Babeau will remain with the company as Strategic Advisor to Jacek Olczak, PMI’s Group Chief Executive Officer, through March 31, 2027, which is defined as his separation date. In connection with that planned departure, Philip Morris said its board approved a Separation Agreement and Release on July 2, 2026, and Babeau entered into the agreement on July 6, 2026 with PMI Management Sàrl, an indirect wholly owned subsidiary of the company. The filing reports the matter under Item 5.02, covering departures of certain officers and related compensatory arrangements, and includes the separation agreement as Exhibit 10.1. Under the agreement, Babeau will continue to receive his current base salary while serving as strategic advisor through March 31, 2027. That salary is CHF 1,260,012, stated by the company as approximately $1,563,423 using the July 6, 2026 exchange rate of CHF 1.00 to $1.2408. He also remains eligible for his 2026 annual cash incentive award, which has a target value equal to 125% of his base salary, provided he remains employed through the separation date. Babeau may also receive the restricted share unit portion of his 2027 equity award, subject to board approval at the time of grant and his continued employment through March 31, 2027. The company specified that he will not be eligible for the performance share unit portion of that 2027 award. If approved, the RSUs would represent 40% of the total 2027 equity award he otherwise would have been eligible to receive. The filing did not disclose a number of RSUs, share counts, grant-date value, exercise price, or any insider transaction code, as this was not a reported open-market securities transaction. The agreement also provides Babeau with post-employment payments and benefits associated with a termination without cause under his employment agreement effective May 1, 2020. These include a lump-sum severance payment equal to his current base salary of CHF 1,260,012, or approximately $1,563,423, and a payment of CHF 393,754, or approximately $488,570, in lieu of his 2027 annual cash incentive award prorated through the separation date. In addition, his then-outstanding equity awards will fully vest. As consideration for the payments and benefits, Babeau agreed to a 24-month non-competition provision. The separation agreement also includes customary confidentiality and non-disparagement provisions, a general release of claims, and conditions requiring his continued employment through March 31, 2027 and compliance with the agreement’s obligations.