Former Tyson Foods Inc. CEO Tom Hayes, who unexpectedly stepped down in September, will receive a severance package worth more than $6 million.
Hayes will receive his annual salary of $1.2 million and his annual bonus of $1.8 million in biweekly payments for two years after leaving the company, according to Tyson's proxy filing with the U.S. Securities & Exchange Commission. Hayes resigned for undisclosed personal reasons Sept. 30, the day after the company’s fiscal year 2018 ended.
The company said Hayes would also receive a prorated bonus of $313,000. Hayes signed a two-year non-compete agreement that went into effect Dec. 1.
Noel White, previously Tyson's president of its fresh meats and international divisions, was named CEO to replace Hayes. His salary for fiscal 2019 will be $1.15 million, the company said.
For his last year with the company, Hayes was the second-highest paid executive officer. He earned a total of $9.5 million, up from $8.9 million in 2017.
Hayes' compensation included his $1.2 million salary (up from $1.1 million in 2017), $4.7 million in stock awards, $1.3 million in stock options and $1.4 million in executive incentives.
Tyson's highest-compensated executive was Chairman John Tyson, grandson of the company founder. Tyson earned just less than $10 million, down from the $10.45 million he received in 2017.
Tyson's salary increased to slightly more than $1 million from $937,000-plus in 2017; he received $4.48 million in stock awards, $1.3 million in stock options and executive incentives. Tyson also received $1.1 million in compensation through the use of the company’s aircraft.
Other executives and their compensation:
Stewart Glendinning, who became CFO on Feb. 10, 2018: total compensation of $7.58 million after joining the company from the Molson Coors Brewing Co. Includes base salary of $581,000, a sign-up bonus of $2.7 million and stock awards of $2.5 million.
White, as divisional president of fresh meats and international: total compensation of $5.7 million, down from $5.98 million in 2017. Includes base salary of $862,000 (up slightly from $835,000) and stock awards of $2.3 million (up from $2.25 million).
Sally Grimes, president of prepared foods: total compensation of $3.98 million; her 2017 compensation was not reported. Her 2018 compensation included $1.7 million in stock awards and almost $700,000 in executive incentives.
Dennis Leatherby, who retired as CFO on Feb. 18 and died Aug. 6: total compensation of $1.2 million, down from $3.97 million in 2017. Included salary of $390,000, down from $696,000 a year ago. He received a prorated portion of his 2018 bonus of $405,000 and a severance bonus of $249,000.