HR Administration

Visteon’s CEO Don Stebbins Received $12.6 Million Separation Deal

By Dustin Walsh

Aug. 15, 2012

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.

 

Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

About Workforce.com

blog workforce

We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.

Book a call
See the software

Related Articles

workforce blog

HR Administration

Policy management: What is it and what does it look like for HR?

Summary Policy management involves the creation and maintenance of administrative procedures and guidel...

hr policy, policy automation, policy management

workforce blog

Compliance

Minimum Wage by State in 2022 – All You Need to Know

Summary The federal minimum wage rate is $7.25, but the rate is higher in 30 states, along with Washing...

federal law, minimum wage, pay rates, state law, wage law compliance

workforce blog

HR Administration

Rest and lunch break laws in every US state

Summary Federal law does not require meal or rest breaks Some states have laws requiring meal and rest ...