Former Visteon Corp. CEO Don Stebbins walked away from the supplier on Friday with a separation package valued at more than $12.6 million.
Visteon said Monday that Stebbins, who was CEO for the past four years, and the board reached a separation agreement, which was disclosed in a filing with U.S. securities regulators.
Stebbins' package includes a $2.4 million cash severance payment and $10.2 million in instantly vested stock awards, according to the filing.
Visteon's board accelerated vesting of stock awards for Stebbins that were intended to vest in October 2012 and 2013. Those awards were worth $10.2 million at the market's open today with Visteon shares worth $41.91.
The board, however, canceled 22,266 restricted stock awards for Stebbins that would have vested over the next three years. It also canceled 127,141 shares of restricted stock options for Stebbins.
More than 41,000 shares will remain exercisable by Stebbins over the next year, but the option price is more than $30 higher than its current stock price -- meaning the options are essentially worthless.
He could also receive as many as 46,517 shares pro-rated at the end of the fiscal year, depending on company performance. Those shares were worth nearly $2 million at market open today.
The ousted CEO will also maintain company health benefits over the next year and six months of outplacement services totaling no more than $25,000.
Stebbins' compensation as chairman, president and CEO of the climate control and interiors supplier totaled more than $7.8 million last year and $26.9 million in 2010.
Stebbins joined Visteon in May 2005 as president and chief operating officer and was named CEO in June 2008.
As interim chairman and CEO, Tim Leuliette will receive a cash signing bonus of $500,000 and $95,833.33 monthly base salary. If Leuliette is terminated before March 1, 2013, he will receive a $650,000 in additional salary.
Visteon shares jumped more than 8.5 percent Monday following the announcement of Stebbins' departure before settling at $41.91 at close. Today the shares fell 3.3 percent to close at $40.63.
Filed by Dustin Walsh of Crain’s Detroit Business, a sister publication of Workforce Management. To comment, email editors@workforce.com.
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