SeaWorld just announced that its CEO Jim Atchison is out, effective January 15.
Atchison will take a role as vice chairman of the board, serve as a consultant to the company, and will be chairman of the SeaWorld & Busch Gardens Conservations Fund.
Atchison will be replaced on an interim basis by David D'Alessandro, the company's chairman.
SeaWorld also announced that it will initiate a restructuring program across its company, which it says will "result in the loss of some positions." The company did not provide specifics on how many jobs would be cut.
The company also announced that Ellen Tauscher, who previously served as a Member of Congress and as an under secretary of the U.S. Department of State, and William Gray, the former co-CEO of Ogilvy North America of Ogilvy & Mather will join SeaWorld's board.
Atchison has served as CEO of the company since it went public back in April 2013.
Since its debut, the stock is down more than 50%.
However, all is not lost for Atchison, who will enjoy quite a "golden parachute" on his way out the door. As the folks at Footnoted alerted us to, per the company's filing with the SEC, Atchison will receive:
- A lump sum payment of $2.4 million
- A lump sum cash payment equal to the value of benefit continuation for 24 months following termination
- Eligibility for continued vesting of 515,406 outstanding stock options
- An annual consulting fee of $440,000 in each of the three years for which Atchison has agreed to act as consultant to the company
- A provision that sees Atchison's consulting fee increased by the amount equal to the cash retainer plus the annual stock award given to board members if he is NOT re-elected to the board at an annual meeting
Now, these types of agreements are common in the case of executive departures.
But for such a controversial company that has had such poor stock performance over the last year, critics are unlikely to be thrilled with these terms.
See Also:
