Dean Banks, who stepped down as CEO of Tyson Foods Inc. of Springdale in June, will receive $6 million in severance pay over the next couple of years from the company.
Tyson Foods said Banks would receive his $1.2 million annual salary as well as his $1.8 million cash-target bonus for the next two years. Additionally, the company said restricted stock options Banks received would have accelerated vesting, worth another $6.5 million.
Banks joined Tyson Foods as a member of its board of directors in 2017 and was named president in 2019. He replaced Noel White as CEO on Oct. 3, 2020, the first day of fiscal 2021.
Longtime company executive Donnie King was named to replace Banks as CEO in June.
Even though Banks was CEO for a little more than one-half year, he was still the company’s highest-compensated executive in 2021, according to a proxy statement Tyson Foods filed with the U.S. Securities & Exchange Commission. Banks earned a total of $14.5 million, up from $12.8 million in 2020.
Banks’ compensation included his annual salary of $1.2 million, stock awards of 5.3 million, options awards of $5.7 million and $2.4 million from the executive incentive plan.
Company Chairman John Tyson earned total compensation of $13.7 million in 2021, up from $11.2 million. Tyson’s compensation included $1.2 million in salary, $5.6 million in stock awards and $3.6 million from the executive incentive plan.
The company reported that John Tyson’s use of the company aircraft and event tickets was valued at $1.3 million. The sum also included meat purchases, donation matching and cell phone use.
King earned total compensation of $8.9 million, less than $600 dollars shy of $9 million. His compensation was an increase from $6.7 million in 2020 when he was the company COO.
King’s compensation included salary of $980,000, stock awards of $3.7 million and $2.7 million from the executive incentive plan.
CFO Stewart Glendinning earned total compensation of $5.2 million in 2021, up from $3.9 million the previous year. His compensation included an annual salary of $787,000, stock award of $2 million and $1.7 million from the executive incentive plan.
Chris Langholz, president of the international division, earned total compensation of $5.3 million, down from $8.8 million in 2020. His compensation included $642,000 in salary, $1.58 million in stock awards and $1.39 million from the executive incentive plan.
Chief Legal Officer Amy Tu, a named executive for the first year, received total compensation of $4.7 million. Her compensation included $683,000 in salary, $1.89 million in stock awards and $1.48 million from the executive incentive plan.
Tyson Foods reported that its shareholders meeting would be held at 10 a.m. Feb. 10 at the Holiday Inn Convention Center in Springdale. Shareholders will vote on the company’s 13-person board of directors, to ratify PricewaterhouseCoopers LLP as the company’s independent accounting firm and on one shareholder proposal.
The proposal, which is opposed by the company’s board of directors, would require Tyson Foods to issue a report on its efforts to reduce its use of plastic in packaging.