Visteon awarded outgoing CEO Don Stebbins a severance package worth about US$12.7m, according to a US government filing.
Reuters, citing a Visteon 8-K filing with the US Securities and Exchange Commission, said Stebbins, who resigned last week as president and chief executive officer, would receive cash payments totaling $2,391,000 and 244,445 shares of stock worth an estimated $10.3m at Monday’s closing price of $42.01.
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He also has one year to exercise options on another 41,036 shares, at a strike price of $74.08 – well above Monday’s close.
The report said Stebbins was paid over $7.8m in cash and stock in 2011 and nearly $27m in 2010. He joined Visteon in May 2005 as president and chief operating officer, and was named CEO in June 2008.
Visteon said it would pay interim CEO Tim Leuliette a base monthly salary of $95,833 plus a signing bonus of $500,000. Leuliette also will receive a cash payment of $650,000 if he is terminated before 1 March, 2013.
According to Reuters, Visteon said in its SEC filing Stebbins’ departure “is not due to a disagreement with the company” nor related to “the company’s operations, policies or practices”.
The report noted that Visteon, spun off from Ford in 2000, has been exploring the sale of non-core assets to streamline its corporate structure and boost profit margins. It has been facing breakup pressure from some board members and shareholders, who believe the company is worth more in parts than as a whole.
The company has turned its focus to two core product lines: climate control and electronics.
Visteon last month made an unsuccessful attempt to take full control of its South Korean affiliate, Halla, after facing opposition from other Halla shareholders, Reuters added.
