NEW YORK (AFX) - Komag Inc., a San Jose, Calif.-based maker of thin-film disks used in disk drive manufacturing, said Thursday that Chief Technical Officer Michael Russak will retire, effective Oct. 3, and be replaced by Tsutomu T. Yamashita.
Yamashita, 50, will receive a base salary of $350,000, and will receive 25,000 restricted shares. He previously served as senior vice president, process and product research and development.
Under terms of Russak's separation agreement, Komag expects to pay a total of $401,700, and grant him an additional year, starting Oct. 3, of accelerated vesting on his 4,167 unvested options. Russak also is entitled to a $70,000 lump sum payment as part of the company's target incentive plan.
Komag expects to record $1 million of expenses related to its separation agreement with Russak.
In addition, the company said it named Edward Casey as chief operating officer. In August, former COO Timothy D. Harris, 51, was named CEO, effective Oct. 1. Casey, 51, joined Komag in 2000 through the company's merger with HMT Technology Corp.
Casey will be paid a base salary of $250,000, plus 25,000 shares of restricted stock, and will be eligible to participate in Komag's employee benefit plans.
Shares of Komag slipped 78 cents, or 2.4 percent, to $32.30 in afternoon trading on the Nasdaq.
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