Owens-Illinois Inc. said 28 November 2006 that it will incur USD 15 million in charges in the 4Q as a result of pay packages for its departing and incoming chief executives.
The company said in a Sec…
Owens-Illinois Inc. said 28 November 2006 that it will incur USD 15 million in charges in the 4Q as a result of pay packages for its departing and incoming chief executives. The company said in a Securities and Exchange Commission filing that it will pay departing Chairman and Chief Executive Steven R. McCracken a lump sum of USD 4.5 million in cash, plus USD 3.5 million in retirement benefits under a separation agreement with the Perrysburg, Ohio, packaging-products maker. Mr. McCracken, who has been battling stomach cancer, stepped down as CEO for what the company described as personal reasons on 30 November 2006. Owens-Illinois will grant incoming chairman and CEO Albert Stroucken USD 9.75 million in options and restricted stock, according to the SEC filing. The company said it also will pay Mr. McCracken a lump sum equal to the bonus he would get for 2006 or USD 618,750, whichever is greater. He also will continue to get his salary through 31 December 2006. His unvested options, restricted stock and restricted stock units will be fully vested, according to the filing. For 2005, Mr. McCracken earned a USD 1.26 million bonus and an USD 800,000 salary, according to an earlier filing with the SEC. Owens-Illinois also will pay Mr. Stroucken a starting salary of USD 950,000. The USD 9.75 million in options and restricted stock consists of an initial USD 3 million grant of options and restricted stock; USD 3 million in options, restricted stock and restricted stock units in lieu of 2007 grants; and another USD 3.75 million to compensate for pay and benefits Mr. Stroucken will forfeit by leaving H.B. Fuller Co., where he is currently CEO. Owens-Illinois set Mr. Stroucken“s target bonus at 150% of his salary, according to the filing. For 2007, the new chief executive will receive a bonus of at least USD 1.43 million.