The recently released top executive of Fairlawn polymer company A. Schulman Inc. is getting a sizeable going-away package.
Bernard Rzepka, who stepped down as president and chief executive officer in August after the $2.4 billion company unexpectedly lowered its earnings guidance for the year, will get more than $3.4 million in severance. That includes $1.7 million in cash payments, two lump sum payments of $853,000 apiece and more, according to a public filing with federal regulators.
The cash payments and other items are part of a separation agreement between A. Schulman and Rzepka that was filed Monday with the Securities and Exchange Commission.
Rzepka also can be offered a six-month consulting job with a Schulman subsidiary in Germany, if he moves back to that country, that pays nearly $6,600 per month.
The SEC filing shows Rzepka will receive:
• Cash severance totaling $1,706,000. That includes a lump sum payment in March of $426,500, followed by 36 semi-monthly payments of $35,541.67.
• Two lump sum payments of $853,000 in lieu of cash bonuses, with the first payment in March; the second will be in October.
• Vesting of outstanding equity awards. No value was given.
• Reimbursement for loss if the sale of his U.S. house is less than $680,000.
• Reimbursement up to $75,000 for transition-related expenses.
• Health care coverage for 12 months.
• The offer of a consulting job for six months in Germany if he moves there and he needs to work for a Schulman company in order to participate in Germany’s social security, retirement and health care benefits. The consulting job would pay 6,000 euros a month, equal to about $6,579 monthly.
Rzepka, 56, was a longtime A. Schulman employee who succeeded Joseph Gingo as CEO in 2015. Rzepka joined Schulman in 2002, where his jobs included vice president, general manager and chief operating officer of the company’s Europe, Middle East, and Africa division.
The company on Aug. 19 said it and Rzepka mutually agreed that he would step down.
The Schulman board rehired Gingo, its 71-year-old board chairman, as CEO.
According to another SEC filing, Gingo will receive a base salary of $920,000 and other compensation as part of a two-year employment agreement. A. Schulman initially hired Gingo, a longtime Goodyear executive, in 2008 as its CEO.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com. Follow him @JimMackinnonABJ on Twitter or www.facebook.com/JimMackinnonABJ.