13 August 2013 20:43 [Source: ICIS news]
HOUSTON (ICIS)--US-based DuPont adopted a new severance plan that would give its CEO and other officers a large payout in case of a takeover that resulted in their dismissals, according to a regulatory filing on Tuesday.
If DuPont were taken over and CEO Ellen Kullman were dismissed, then she would receive a lump payment equal to three times the sum of her base salary and annual bonus, the filing said.
Other executives would receive twice the sum, the filing said.
The officers would receive other payments and benefits as well.
DuPont's board of directors adopted the plan on 12 August.
In a statement, DuPont spokesman Michael Hanretta said: “These are customary plans with provisions similar to those in place for many Fortune 500 companies and our peer companies. The purpose of these plans is to reduce uncertainty and distraction for key employees in the event of an impending change in control and to retain key employees.”
DuPont adopted the plan two days before the deadline for institutional investors to report second-quarter holdings, Bloomberg reported.
Activist investor Nelson Peltz is reported to have bought a major stake in the company through his investment vehicle Trian Fund Management.
DuPont had no comments regarding the reports about Peltz, he said.
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