Former Cooper Tire & Rubber Co. Chairman, President and CEO Thomas Dattilo is entitled to a lump-sum payment of at least $2.22 million plus other benefits after resigning Aug. 3, according to Tire Business calculations based on company filings with the Securities and Exchange Commission (SEC).
In addition to the payment, Mr. Dattilo is eligible for continuation of company-sponsored life, accident and health insurance benefits for the remainder of his contract, which runs until year-end 2007. He also is entitled to another lump-sum payment based on formulas for pension benefits and the exercise of stock options.
In company filings, Cooper said Mr. Dattilo's contract provides that he is eligible for a lump-sum payment equal to the amount he would have received until the end of his pact had he been paid at an average compensation level. Based on information provided in the SEC filings, Mr. Dattilo's average compensation was $1.34 million over the past five years, counting base salary, annual bonuses and long-term incentive compensation.
With one year and five months left on the contract, that payment becomes $1.9 million. Cooper also set up a provision aimed at encouraging Mr. Dattilo to remain with the firm, whereby he would receive a one-time payment of $325,000 if he leaves in 2006, but the amount would increase each year he remained, Cooper said in the filings.
Mr. Dattilo's salary in 2005 was $850,000. He did not receive a bonus last year but was paid $273,076 in long-term incentive compensation.
In the company's 10-Q filing for the second quarter, Cooper said the board had determined that Mr. Dattilo would receive his severance and benefits ``as if he were terminated involuntarily without cause,'' a designation that makes him eligible for the payments.
A Cooper spokeswoman declined to comment on the sums.
As interim CEO, director Byron Pond will receive base compensation of $850,000 annually plus a stock grant with a value of $185,000 on the first day of trading during each three-month period in which he occupies the interim position, the company said. He also will continue to be compensated as a director, which in 2005 was $45,000 annually plus meeting and chairmanship fees.