Randall K. Zanatta, president and CEO of Golf Galaxy, Inc., a wholly-owned subsidiary of Dick's Sporting Goods, Inc., will step down from his position with Golf Galaxy, effective July 18, according to a filing with the Securities & Exchange Commission. Dick's completed its acquisition of Golf Galaxy in February 2007.
Zanatta, who had been president, CEO and chairman before the merger and continued with Dick's, co-founded Golf Galaxy in December 1995. Before co-founding the company, Zanatta spent 17 years with Best Buy Co., Inc., most recently as senior vice president, marketing and merchandising.
According to a separation agreement dated June 26, Golf Galaxy and Dick's have agreed to pay Zanatta certain benefits upon his departure. These benefits include (1) a lump sum payment equal to two times his current base salary, (2) a pro-rated cash bonus payment and eligibility for additional incentive bonus payments for the current fiscal year (if and to the extent certain specified performance targets are actually achieved), and (3) a payment in lieu of or the continuation of certain health, welfare and employee benefits for two
Additionally, the stock option granted to Zanatta exercisable for up to 330,000 shares of the company's common stock at an exercise price of $27.295 per share and all stock options previously granted to Zanatta that were exercisable for Golf Galaxy common stock (now converted to options exercisable for Company's common stock as a result of the acquisition of Golf Galaxy by the Company) will fully vest. The 75,000 shares of restricted common stock granted to Zanatta on February 13, 2007 that were to vest based only on the passage of time will fully vest. Zanatta has forfeited any rights to an additional 75,000 shares of restricted common stock granted to him on February 13, 2007 that were to vest based on the attainment of certain performance metrics.