THQ Sets Severance Terms for Officers

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THQ filed a notice with the SEC to let investors know that on June 15 the company signed severance agreements with each of its executive officers.
Under the terms of the agreement, if an officer is dismissed without cause (in other words, laid off), that officer is entitled to the following:
  • An Executive Vice President (EVP) would receive one year's pay, while a Senior Vice President (SVP) would receive 75% of one year's pay
  • Accrued, unpaid bonuses
  • AN EVP gets twelve months of health insurance premiums, while an SVP gets nine months
If an officer is terminated because the company is sold, the deal is even sweeter. These terms protect existing officers in the event the company changes control. In that event, an officer would receive:
  • 150% of one year's salary
  • 100% of the annual target bonus, plus 100% of the annual target bonus multiplied by the percentage of the year since the last bonus was paid
  • Accrued, unpaid bonus from the previous year
  • Twelve months of medical, accident, disability and life insurance premiums
  • A cash payment equal to the unvested portion of employer contributions under the company's Defined Contribution Plan

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This page contains a single entry by Editor published on June 20, 2006 12:09 AM.

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