IBJNews

HHGregg gets $40M from life insurance on former CEO

Back to TopCommentsE-mailPrintBookmark and Share

Indianapolis-based HHGregg has collected a $40 million payout from a life insurance policy it had taken out on former executive chairman Jerry W. Throgmartin, who died in January after a sudden illness.

The electronics retailer said in a regulatory filing it plans to pay $600,000 to Throgmartin's personal estate in accordance with the terms of an employment agreement and will keep $39.4 million for "general corporate and working capital purposes." 

HHGregg may opt to use the life insurance proceeds to purchase company shares owned by Throgmartin's estate, a local wealth adviser suggested. At last report, Throgmartin owned about 2.5 million shares worth about $30 million.

The company did not specifiy its plans, but noted it does not expect any tax expenses related to the insurance windfall.

Companies like HHGregg purchase so called "key man" life insurance policies to protect against potential expenses stemming from the loss of particularly important executives. Lenders may actually require a policy in instances where a company and an executive are particularly intertwined.

Throgmartin, 57, had served as chairman and CEO of the Indianapolis-based company from 2003 to 2009, when he became executive chairman. His grandfather founded the company in 1955. He oversaw explosive growth at the retail chain.

Throgmartin died of complications from meningitis Jan. 22 while visiting his ranch in Colorado.

In filings with the Securities and Exchange Commission, HHGregg has listed its dependence on "key management" as one of the risk factors that could affect the company's results. The filings do not say whether the company has "key man" life insurance policies on other executives.

A common question with such policies is whether to retain them once an executive takes a less active role in a company, as when Throgmartin relinquished the role of CEO in 2009.

Under Throgmartin's leadership, HHGregg grew from a local consumer electronics retailer into a national player with more than $2 billion in annual revenue.

ADVERTISEMENT

  • Family Tree
    My name is Jesse W Throgmartin and my fathers name is Jerry W Throgmartin. I've never met him and was told he died 36 years ago. I was born 10-24-1976. Roughly the same time Jerry Throgmartin started working at the electronics store. I was told he died roughly the same time. I cannot find a obituary for my father ANYWHERE! I am looking for every possibility and every time I I put in his name anywhere on the computer I am redirected to Jerry William Throgmartin. William is my sons middle name. My email is jthrogmartin@yahoo.com and I live in Cedar Rapids Iowa. Thank you
  • Good Move
    Congratulations to the Board of Directors for having the foresight to plan for an event no one ever wanted to happen. Key Man Insurance is needed when the loss of one or more very key personnel could require hugh expenditures as a business plans for the future after the loss of a key executive.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Uh, sorry Johnnie, but you are incorrect. Despite the assertions by yourself and various defenders and captains, sports attendance is NOT off significantly at most sporting events in the US. Variances in attendance has been in the range of single digits, both + & - for years now. MLB has had most of its best overall attendance nubers in the last decade, and that trend has been consistent for most major sporting events. The number one issue cited by most fans when asked about attendance is the overall cost of attending. The presence of HD and big screen televisions in home doesn't even register, as a factor for not attending an event. VALUE in the product is the key, and apparently is something lacking in the current ICS. What other explanation is there when with what is routinely touted as the "best" racing on the planet, fans are staying away in DROVES. A "close" title battle into the last event at Fontana, with the "cars and stars" of the ICS, and who showed up? MAYBE 8K. Sorry, but HD TV isn't to blame for that kind of fan apathy.

  2. Do you need finance to establish your business ? Are you interested in getting a loan at 3% from our private company? If so please Email: suntrust_oil@blumail.org

  3. If she was worth the $ the public outcry over direct tv dropping them would have kept them on their dishes as we have seen with other companies. I too quit watching channel 13 after she showed up since I left channel 8 because of her all show rather than production results. When Randy on 8 corrected her she had a big head and incorrectly challenged his correction for pronunciation of a city. Other antics while she matures was too much for me with her very inaccurate forecasts. All the forecasters were predicting rain until Thursday except Chris. They predicted sunny on Thursday but instead of rain until Thursday upon which the sun would finally make it out in full glory Chris was right on the money just as I too predicted looking at the radar on weather.gov. One thing I love about Angela is the fear you can see in her every time it thunders in the winter. It far exceeds the entertainment value of her body language (high heel noise drags, depression, etc) when her forecasts are so incorrect. Her hair stands on end, you have to see it!!!

  4. Good Day, Apply For A Loan I am Mr Fernadez Antonio, a private Loan lender and a cooperate financial for real estate and any kinds of business financing. I also offer Loans to individuals, Firms and cooperate bodies at 3% interest rate We offer any kind of loans. email us via fernadezloaninvest@outlook.com LOAN APPLICATION FORM First name:......................... Middle name:......................... Last name:........................................ Date of birth (yyyy-mm-dd):....................... Gender:........................................... Marital status:................................... Total Amount Needed............................... Loan Duration.................................... Address:.......................................... City:............................................. State/province:................................... Zip/postal code:.................................. Country:.......................................... Phone:............................................ Fax:.............................................. Mobile/cellular:.................................. Monthly Income.................................... Occupation:....................................... Best Regard, Mr Fernadez Antonio.

  5. i will love to share my testimony to you all the people in world i got married to my husband about 2 year ago we start having problems at home like we stop sleeping on the same bed,fighting about little things he always comes home late at night,drinking too much and sleeping with other women out side i have never love any man in my life except him. he is the father of my child and i don't want to loose him because we have worked so hard together to become what we are and have today .few month ago he now decided to live me and the kid,being a single mother can be hard sometimes and so i have nobody to turn to and i was heart broken.i called my mom and explain every thing to her,my mother told me about DR.okoro how he helped her solve the problem between her and my dad i was surprise about it because they have been without each other for three and a half years and it was like a miracle how they came back to each other. i was directed to DR. okoro on his email:okorospell@gmail.com and explain everything to him,so he promise me not to worry that he will cast a spell and make things come back to how we where so much in love again and that it was another female spirit that was controlling my husband he told me that my problem will be solved within two days if i believe i said OK So he cast a spell for me and after two days my love came back asking me to forgive him i Am so happy now. so that why i decided to share my experience with every body that have such problem contact Dr okoro the great spell caster on his email addresses spellcasterforlove@outlook.com

ADVERTISEMENT