Levatich in line for $2.2 million severance package from Harley

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Former Harley-Davidson chief executive officer Matt Levatich could receive a $2.2 million severance package after stepping down as president and chief executive officer of the Milwaukee-based motorcycle maker.

Harley announced Friday that Levatich would step down as CEO with board member Jochen Zeitz taking over as acting CEO while the company searches for a new leader. Zetiz also become chairman of the board as part of the changes.

In a securities filing on Monday, Harley said Levatich would receive benefits in accordance with the companyโ€™s executive severance plan. That plan, according to Harleyโ€™s latest proxy statement, includes 24 months of base pay and 18 months continuation of other employee benefits, including life insurance, and medical benefits.

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Levatich had a base salary of $1,076,250 in 2018 and the company did not provide any salary increases to its executive officers in 2019, giving him a cash severance of $2,152,500. The other benefits were worth around $65,500 at the end of 2018, according to the companyโ€™s latest proxy filing.

Harley also disclosed on Monday that Zeitz will have an annual base salary of $2.5 million. He will also be eligible for a $3 million bonus if his employment continues through the installation a new CEO and a $3 million equity award in the form of restricted stock units that vest one year after being granted.

Despite a base salary more than doubles what Levatich made, the $8.5 million value of Zeitzโ€™s compensation is less than the $9.1 million Levatich made in total compensation in 2018.

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