Lighting and semiconductor technology firm Cree will pay outgoing Chief Executive Officer Charles Swoboda more than $2.8 million as part of a severance agreement, according to a filing Wednesday with the Securities and Exchange Commission.
Swoboda will receive 18 months pay based on his current annual salary of $785,000, which is more than $1.77 million.
In addition, the outgoing CEO will receive nearly $1.65 million as a bonus. He’s also eligible for a bonus based on the company’s 2018 performance.
Swoboda will also receive a lump sum payment of 18 times the COBRA premium applicable to the type of medical, dental and vision coverage.
Swoboda, who will act as a consultant for the company for the next 18 months, also will receive a $5,000 monthly consulting fee after that.
He will have a noncompete agreement during the consulting time period, ending six months after the consulting ends.
Cree, which makes LED light bulbs and light fixtures, announced on Friday that Swoboda would leave as CEO of the company as soon as a replacement is found. He has been CEO since 2001 and chairman since 2005.
Cree’s (Nasdaq: CREE) shares closed at $24.32, up 9 cents, on Wednesday.
Note: This story is from the North Carolina Business News Wire, a service of the UNC-Chapel Hill School of Media and Journalism
