Standard Pacific Homes has settled a compensation dispute with two of its top executives who recently resigned as part of corporate restructuring.
The pair did not go quietly.
Andrew H. Parnes, who was executive vice president and chief financial officer before his resignation, and Clay A. Halvorsen, executive vice president, general counsel, and secretary, both made claims that their employment agreements and change of control agreements were breached, according to an 8-K filing with the U.S. Securities and Exchange Commission Monday, March 9.
They asked for payment of bonuses for 2008 and also asserted that they were due compensation under a 2006 change in control agreement.
The Standard Pacific settlement was a compromise, the documents say. Each settled for 57% of the maximum amount they could have claimed they were owed under their 2008 bonus arrangements and change in control agreements.
Parnes’ settlement includes a lump sum payment of $2.4 million, reimbursement for up to 24 months of COBRA insurance payments, and up to 90 days to exercise any vested stock options. He also gets to keep the company Blackberry, but he has to pay for the service himself.
Halvorsen’s settlement is the same except his lump sum payment is for $1.55 million.
They each also get unpaid vacation time which totals $60,577 for 240 hours worth for Parnes. Halvorsen will be paid for $50,770 for his 240 hours of unused time.
Teresa Burney is senior editor at BIG BUILDER magazine.