Trimeris co-founder and former chief executive officer Dani Bolognesi will receive cash and stock as part of a severance package from the company.
Robert Bonczek, the chief financial officer, also will receive a separation package.
Bolognesi will receive nearly $1 million in salary and Bonczek $700,000 in salary, according to government filings.
The two executives agreed to leave their positions in a management shakeup that Trimeris announced last week. Their departure and the ending of a drug-development partnership with Roche triggered a 29 percent drop in Trimeris stock on Friday.
In a filing with the Securities and Exchange Commission that was disclosed on Tuesday, the company said Bolognesi would receive a financial package equal to two years of his salary and the “current target bonus.” He also will receive medical coverage, 31,300 shares of stock this year and 50,000 shares in 2009.
In the filing, the company said it requested Bolognesi’s retirement.
“Trimeris, Inc. ("Company") hereby requests that you elect to retire effective on March 16, 2007,” the filing said. “[T]he Company delivered to the Executive a request for retirement that the parties understood to constitute a notice of termination without Cause” on March 14.
As part of the agreement, Bolognesi agreed to serve as a scientific consultant to Trimeris for two years. He also will remain on the board until the firm’s 2007 annual meeting.
According to SEC filings, Trimeris entered into long-term employment agreements with both Bolognesi and Bonczek on March 9.
In addition to his CEO role, Bolognesi served as Trimeris’ chief scientific officer. Bolognesi has been a pioneer in AIDS research and helped create the HIV drug Fuzeon, which Trimeris markets and sells internationally in partnership with Roche.
Trimeris and Bolognesi settled on the severance package on March 14. His departure was disclosed the next day just before Trimeris reported its first profitable year since Bolognesi helped launch the firm in 1993.
The Bonczek agreement also was settled on March 14. He will step down as CFO and general counsel on April 30. Bonczek will receive a similar financial and stock package.