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Circuit City departing CEO gets $1.8M in severance
Staff and agencies
By MICHAEL FELBERBAUM, Associated Press Writer 39 minutes ago
RICHMOND, Va. - Circuit City Stores Inc.‘s departing chief executive is receiving at least $1.8 million in a severance deal after resigning from his post at the consumer electronics retailer earlier this week, according to a regulatory filing on Thursday.
The 48-year-old also will receive health and welfare benefit plan participation for two years, up to $50,000 in outplacement services and the acceleration of the vesting of his stock options and restricted stock awards that would have vested prior to Oct. 4, 2009.
The company enforced the "involuntary termination without cause" or "termination for good reason" clauses of the agreement, according to the filing.
Board member James A. Marcum will now serve as the chain‘s interim president and chief executive. Former tobacco executive Allen B. King was named as the new chairman.
Last month, Marcum, who was involved in turnaround efforts at movie-rental chain Hollywood Entertainment Corp. and retailer Ultimate Electronics Inc., was appointed Circuit City‘s vice chairman.
The number was far less than the $17.1 million he earned in the prior year mainly due to stock and stock options he received in fiscal 2007 valued at $16 million for his promotion to CEO in March 2006.
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Circuit City: http://www.circuitcity.com
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