By Carlie Kollath/NEMS Daily Journal
BALDWYN – Hancock Fabric’s new CEO and president Steve Morgan is getting a base pay of $600,000 a year, according to a filing Thursday.
Hancock, in a filing with the U.S. Securities and Exchange Commission, said Morgan’s contract is for three years.
Morgan has been the interim CEO and president since January, after the company’s board did not renew Jane Aggers’ contract. Aggers’ contract, revealed in April 2009, provided her with an annual base pay of $450,000 from 2008 until January 2011.
According to Thursday’s filing, the company is providing Morgan with a relocation benefit of up to $200,000, payable in cash or restricted shares.
In addition to his base pay, he will be compensated with a grant of 342,857 restricted shares of the company’s common stock, vesting over three years.
He also will participate in the company’s short-term and long-term incentive plans. According to the filing, the plans are tied to performance metrics and stock price.
If Morgan’s contract is terminated without cause by the company or “for good cause by Morgan,” the filing said he’ll get severance benefits of two times his salary and earned incentive bonus and accelerated vesting of restricted stock. He’ll get 2.5 times his salary and incentive compensation if he is terminated following a change of control of the company.
The company, in Thursday’s SEC filing, said it is finalizing a definitive employment agreement with Morgan.