Joy Global chief executive officer Ted Doheny could be eligible for an $8.1 million payment because of the company’s acquisition by Komatsu America.
The Milwaukee-based company has change of control agreements in place with each of its named executive officers. Those agreements call for payments of severance, welfare benefits and outplacement services if the executive were to leave the company within three years of a change of control. The agreements are triggered if the executive leaves for “good reason” or is terminated by the company without “cause.”
The executive’s ability to leave for “good reason” includes being assigned duties inconsistent with a current rule, having to relocate, requirements to travel significantly more and other reasons related to compensation.
The agreements offer executives a lump sum payment of two times their base salary and annual bonus. The payment is three times in the case of the chief executive officer.
Doheny had a base salary of $983,155 and total compensation of $1.3 million in 2015. As of Dec. 31, 2015, he would have been eligible for an $8.1 million payout, including $7.1 for severance, according to the company’s February proxy statement.
Other executives had potential payments between $1.7 million and $2.9 million.