Furniture Brands Discloses “Change Of Control” Deals

June 26, 2007  by in UnCategorized   

By Home Furnishings Business in on June 2007 Furniture Brands International, St. Louis, disclosed agreements Tuesday that Thomasville President Nancy Webster and FBI General Counsel Lynn Chipperfield will receive large lump-sum payments in the event there’s a change in company ownership that results in either executive being terminated.

Described as “change in control agreements,” the documents were disclosed in filing with the Securities and Exchange Commission Tuesday.

The documents state that termination payments would equal 1.5 times the executive’s salary if that person’s employment is ended without cause up to two years after a change in ownership, which could include an individual or entity acquiring a 35 percent share of the company’s outstanding common stock or voting power. In the event of a termination, the executive would also receive other compensation.

A spokesman did not immediately respond to questions about whether FBI is pursuing similar agreements with other company executives.

Webster, a former Target vice president, became Thomasville’s president and CEO in September 2005. Chipperfield has been with FBI and its forerunner for more than 20 years. He has been general counsel since 1996 and added the titles senior vice president and chief administrative officer in 2000. According to published reports based on company statements, Chipperfield’s base salary in 2006 was $325,000, and Webster’s was $350,000.

In March, Sun Capital announced that it had acquired a 5 percent stake in Furniture Brands. Sun Capital has ownership in several furniture companies, including Lexington Home Brands, Rowe and Powell.