(Reuters) - Visteon Corp VC.N awarded outgoing Chief Executive Officer Don Stebbins a severance package worth about $12.7 million, the Michigan-based auto parts company said in a government filing.
Stebbins, who resigned Friday as president and chief executive officer, will receive cash payments totaling $2,391,000 and 244,445 shares of stock worth an estimated $10.3 million at Monday’s closing price of $42.01, according to Visteon’s 8-K filing with the U.S. Securities and Exchange Commission.
He also has one year to exercise options on another 41,036 shares, at a strike price of $74.08 -- well above Monday’s close.
Stebbins was paid more than $7.8 million in cash and stock in 2011 and nearly $27 million in 2010. He joined Visteon in May 2005 as president and chief operating officer, and was named CEO in June 2008.
Visteon said it will pay interim CEO Tim Leuliette a base monthly salary of $95,833 plus a signing bonus of $500,000. Leuliette also will receive a cash payment of $650,000 if he is terminated before March 1, 2013.
In its 8-K filing, Visteon said Stebbins’ departure “is not due to a disagreement with the company” nor related to “the company’s operations, policies or practices.”
Visteon, which was spun off from Ford Motor Co (F.N) in 2000, has been exploring the sale of noncore assets to streamline its corporate structure and boost profit margins. It has been facing breakup pressure from some board members and shareholders, who believe the company is worth more in parts than as a whole.
The company has turned its focus to two core product lines: climate control and electronics.
Visteon last month made an unsuccessful attempt to take full control of its South Korean affiliate, Halla, after facing opposition from other Halla shareholders.
Reporting By Paul Lienert in Detroit; Editing by Gerald E. McCormick, Gary Hill