Just two weeks ago, Dow Chemical and DuPont said it could months before they knew how many jobs would remain in Indianapolis—the current headquarters of Dow AgroSciences—following the $130 billion merger of their companies.
Some jobs will be moved to Wilmington, Delaware, the new headquarters of the combined agricultural divisions. Other jobs might be cut as redundant.
But here’s one thing they’re already sure of: The CEOs of Dow and DuPont will have a whopper of a payday.
The two CEOs will split $80 million in golden parachute payments after the companies complete their merger and then split into three publicly traded firms, according to a regulatory filing Thursday. (You can read it here.)
Golden parachutes are large payments given to company executives if they lose their jobs as a result of a “change in control,” meaning a merger or takeover.
The Dow-DuPont merger is expected to close in the second half of 2016. The payments will kick in over the ensuing two years, as the combined company separates into businesses focusing on agriculture, material sciences and specialty products.
Andrew N. Liveris, chairman and CEO of Dow Chemical, will get $52.8 million in cash, stock and other payments. (After the merger, Liveris will serve as executive chairman of DowDuPont.)
Here’s the breakdown for Liveris:
• Cash severance: $15.3 million
• Equity: $36.1 million
• Pension/non-qualified deferred compensation: $1.3 million
• Perquisites/benefits: $62,249
Other Dow Chemical officers will get parting gifts, too:
Charles Kalil, general counsel and executive vice president: $14.3 million
James Fitterling, president and chief operating officer: $12.3 million
Howard Ungerleider, vice chairman and chief financial officer: $12 million
Joe Harlan, vice chairman and chief commercial officer: $11.1 million
On the DuPont side, the payouts also will be in the seven- and eight-figure range, with CEO Edward Breen receiving $27.1 million. Here’s his breakdown:
• Cash severance: $11.9 million
• Equity: $7.6 million
• Pension/non-qualified deferred compensation: $0
• Perquisites/benefits: $80,160
• Tax reimbursement: $7.5 million
And his lieutenants will get thick envelopes, too:
James C. Collins, executive vice president: $16.5 million
C. Marc Doyle, executive vice president: $13.7 million
Nicholas C. Fanandakis, executive vice president and chief financial officer: $9.1 million
James C. Borel, former executive vice president: $4.9 million
So stay tuned to see how many jobs stay in Indy, and what kind of parting gifts the laid-off employees will get. We’re pretty sure they won’t have as many commas.