Former O'Charley's President Steven J. Hislop, who resigned at the end of last year, will get more than $525,000 in severance pay over the next 13 months, the Nashville-based restaurant chain said Wednesday in a filing with the Securities and Exchange Commission.
In exchange, Hislop, who had served as O'Charley's president since 1999, agreed to a clause that would bar him from working for competitors of O'Charley's until at least Dec. 31, 2006, the filing stated.
O'Charley's also agreed to pay premiums for Hislop's COBRA health insurance through the end of this year. And Hislop has until March 31 to exercise his employee stock options.
Former Chief Strategy Officer Richard D. May has also landed a severance deal. He will receive $200,000 this year, plus a car allowance and possible health benefits, after departing the company at the end of 2005.
Jeff. D. Warne, who was named the new president of O'Charley's last week, will earn $400,000 a year in base pay to lead the chain, and could earn more than $280,000 in annual performance bonuses, according to the chain's SEC filing.
Warne, 45, also will receive 20,000 shares of restricted stock and a $25,000 annual car allowance fee. O'Charley's will reimburse his moving expenses, provide him with temporary housing and weekly travel expenses to his home until June 1, the SEC filing stated.
Warne joins O'Charley's after fifteen years with Minnesota-based Carlson Companies Inc., most recently as president and chief operating officer of PickUp Stix.
O'Charley's operates 348 restaurants under three brands: O'Charley's, Ninety Nine Restaurant and Pub, and Stoney River Legendary Steaks. The Company operates 225 company-owned O'Charley's restaurants in 17 states in the Southeast and Midwest.