PHILADELPHIA (AFX) - The former chief executive of Pep Boys, who resigned this week amid shareholder pressure, will be getting $2.7 million to leave.
Larry Stevenson will get his annual base salary of $1 million, plus another $1.7 million to buy out his vested stock options that have made money, according to a filing the company made late Friday with the Securities and Exchange Commission.
Interim CEO Bill Leonard, the chairman of the board, will be receiving a salary of $83,333 a month, or nearly $1 million a year. Pep Boys is searching for a permanent successor for Stevenson.
Leonard will not be getting his normal compensation as a member of the board, but he will be getting his stock grants under Pep Boys' stock incentive plan, according to the filing.
On Tuesday, the Philadelphia-based auto parts and service chain announced Stevenson's resignation.
The company's two largest shareholders, Barington Cos. Equity Partners LP in New York and Pirate Capital LLC in Norwalk, Conn., have been upset that Stevenson hasn't engineered a better turnaround at the struggling retailer.
Barington, led by corporate raider James Mitarotonda, had led the call for Stevenson to leave.
Shares of Pep Boys have fallen by 26 percent this year. On Friday, the stock closed at $11, down 7 cents, on the New York Stock Exchange.
Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.