Drilling contractor Transocean has provided a generous safety net for chief financial officer Ricardo Rosa, who will leave the company on 30 April.
The company announced Rosa would step down earlier this month, temporarily replacing him with the man Rosa succeeded, Gregory Cauthen.
In an SEC filing, Transocean said it would pay Rosa a lump sum severance payment of 605,000 Swiss Francs and a lump sum bonus equal to a pro-rata version of his target award for 2012.
Using current currency conversion rates, the severance payment is equal to $652,744, but it could be as high as $732,050 using what the company called in an amendment to its 2010 10-K form its “long term exchange rate” of CHF 1.21 to US$1.
Based on figures in the form, released on 28 February 2011, Upstream calculates Rosa will receive about $125,000 in his lump sum bonus and wages of around $166,666.
Transocean is set to release its 2011 10-K form in February when these costs could be recalculated.
Rosa’s 12,805 restricted stock units would vest on 30 April under the severance package, Transocean said, while his contingent deferred unit awards would be adjusted pro-rata to 30 April.
In a note, Transocean said the adjusted vested portion of the awards, which it calculated to be 1052, 1047 and 1055 CDUs over a three year period, would be distributed in March 2012, 2013 and 2014.
The company will also reimburse Rosa for his repatriation costs, it said.
Employed under a six-month contract with a six-month extension option, Cauthen will receive a monthly salary of $53,333 and a lump sum payment of $256,000 when the contract ends.
Transocean also announced changes to the pay package of incoming vice president and principal accounting officer Rob Shaw.
Shaw will be paid a base salary of $350,000, with a target cash bonus opportunity of $175,000 and a long-term incentive plan valued at $585,500. He will also be granted a relocation award of $175,000.