On March 31, David Barclay, president for the West Operating Region of Centex Homes, left the company. However, he will remain involved with the builder through a consulting and independent contractor agreement through April 1, 2010.
In an 8K filed by Centex with the Securities and Exchange Commission on April 2, Centex spelled out details of Barclay's severance package, which includes $2,137,500 in cash; accelerated vesting of certain stock options; accrued vacation payment of $32,885; and outplacement services up to $25,000.
"Centex has reacted, adapted and continued to make the necessary changes in our business to yield both immediate cost savings, as well as create an industry-leading cost structure for continued savings in the future," said Eric Bruner, spokesman for Centex. "Unfortunately in this era of lower overall sales volumes, this has meant reduced employment at all levels. David Barclay has been a strong, consistent contributor over the years and provided valuable insight in his respective roles at Centex. We wish him continued success in the future."
Barclay joined Centex Homes in 1987 and has held numerous positions including: president of the Northern California Division; co-president and co-COO of West Operating Region at Centex Real Estate Corp., a subsidiary of Centex Corp.; executive vice president of West Operating Region; head of National Land Division of Centex Corp.; as well as his most recent position as president of the West region.
Following Barclay's exit, Centex entered into a consulting agreement with California-based Barclay Consulting Group, Ltd., formed by Barclay, in which he will act as an independent consultant offering assistance to the builder on "a variety of matters," the 8K stated.
Compensation for consulting services is set at a rate of $4,000 per week for the first nine weeks, after which rates switch to $300 per hour, not to exceed $2,400 a day.
The consulting agreement and the executive separation agreement contain an 18-month no-compete clause under which Barclay is prohibited from working with any Centex competitor. Among the companies specified are D.R. Horton, Inc.; Pulte Homes, Inc.; Lennar Corp.; NVR, Inc.; KB Home; Hovnanian Enterprises, Inc.; The Ryland Group, Inc.; Beazer Homes USA, Inc.; and "the top four (by revenue) regional/specialty home builders with operations in California not listed."