Scozzafava's FBI Contract Extended 3 Years

February 11, 2010  by in UnCategorized   

By Home Furnishings Business in Executive Changes on February 12, 2010

Furniture Brands International, St. Louis, has extended Chairman and CEO Ralph Scozzafava's contract for three years.

The extension was in an Security and Exchange Commission filing FBI submitted this week. To see the filing, click here and select 8-K filed Feb. 10.

The material changes to the Scozzafava's amended contract are as follows:
* Extension of employment for an additional three years as of July 10 and elimination of Scozzafava's automatic renewal provision.
* Change cash severance from three times base salary plus average bonus paid over the prior three years to two time bas salary plus the target bonus for year of termination.
* Addition of the right to receive a pro-rated annual bonus payable as if Scozzafava had remained an employee throughout the period.
* Elimination of payment of pro-rated cash long-term incentive payments unless at least 18 months or more of the the three-year performance period has lapsed.
* Elimination of tax gross-up on health, dental and vision benefits.
* Elimination of excise tax gross-up on change in control benefits effective Dec. 31, 2011.
* Increase of Scozzafava's non-compete obligations from one year to two years following termination.
* Addition of a clawback provision allowing FBI to recoup the after-tax portion of any performance-based pay that would not have been earned on restated financial results if paid no more than three years prior to restating the financial statements.

FBI also will reimburse Scozzafava for up to $20,000 of his attorney's fees in connection with the new employment agreement.