Ian J. McCarthy, who resigned Monday as CEO from Beazer Homes USA at the request of the Atlanta-based builder’s board, will receive more than $5.2 million in pay and bonuses as severance.
McCarthy’s pay, which was dictated by his employment agreement for termination “other than for cause,” includes three years of pay and bonuses. McCarthy, who started working for Beazer in 1991 and became the company's first CEO when it went public three years later, made $1.2 million annually and his bonuses averaged $549,369 a year for the last three years.
In addition, McCarthy will receive a prorated bonus for this year, medical and other benefits under the company plan for three years or until he is covered under a future employer’s plan, and up to $10,000 to pay any legal fees he owes for negotiating his termination, according to documents filed with the U.S. Securities and Exchange Commission.
In return, McCarthy signed a document releasing Beazer from any claims he might have against the company and agreed not to disparage the company or violate any non-compete provisions in his contract.
Teresa Burney is a senior editor for Builder magazine.
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