ABX execs get golden parachutes
Business First of Columbus - Business First
ABX Holdings Inc. has entered into agreements with CEO Joe Hete and four other senior officers that provide for their continued employment for at least four years after an acquisition or change in control.
The new change-of-control agreements, disclosed in a Securities and Exchange Commission filing from the Wilmington-based cargo airline, generally provide that if an executive is terminated without cause within four years after a change in control, ABX must pay the executive two years' salary and bonus, and three years for CEO Hete.
Other officers included in the agreement are Quint O. Turner, chief financial officer; Dennis A. Manibusan, senior vice president of maintenance and engineering; Robert J. Morgenfeld, senior vice president of flight operations; and Terry L. Scherz, vice president of maintenance.
The agreements provide that the executives are entitled to health and other benefits, which remain if they resign because of a material reduction of salary, authority or responsibilities or a change in employment location. They also place protections on restricted and performance-based stock in the event of a change in control.
ABX (NASDAQ: ABXA) last summer rejected an "indication of interest" from Miami-based Astar Air Cargo Holdings LLC. The company's board said the informal $7.75-a-share acquisition proposal did not adequately reflect ABX's value.
ABX operates a fleet of 135 aircraft at 14 U.S. hubs. The company in 2007 recorded profit of $19.6 million on $1.17 billion in revenue.
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