Evine Live revealed the details of its severance agreements with several key executives who were terminated in a filing with federal regulators Wednesday.
Here is what the No. 3 home shopping network said in its 10-Q:
On March 26, 2015, the Company announced the termination and departure of three executive officers, namely its Chief Financial Officer, its Senior Vice President and General Counsel and President. In addition, during the first quarter of fiscal 2015, the Company also announced the hiring of a new Chief Financial Officer and a new Chief Merchandising Officer.
In conjunction with these executive changes as well as other management terminations made during the first quarter of fiscal 2015, the Company recorded charges to income for the three months ended May 2, 2015, of $2,590,000, which relates primarily to severance payments to be made as a result of the executive officer terminations and other direct costs associated with the Company’s 2015 executive and management transition.
That’s a lot of greenbacks. But let’s break it down.
According to the filing, George Ayd, who we believe is known as Bob Ayd, was terminated as president effective on March 26. His package was a lump sum payment of $746,267, with an additional severance consideration of $256,968.
There is also a 12-month non-compete clause in his exit deal.
As for ex-CFO William McGrath, his severance was $576,800, with an additional $175,936 on top of that. He also gets reimbursed for rent expenses in Minnesota for two months, in a total amount not to exceed $3,010.