Saucony Inc. filed papers last week indicating the company entered into retention agreements with several officers as incentives to work through any possible change in ownership of the company. The agreements cover Michael Umana, COO/EVP/CFO; Michael Jeppesen, SVP, Manufacturing and Product Development; Sam Ward, SVP, Operations and Technology; Brian Enge, VP/GM of the Hind Apparel Division; and Roger Deschenes, VP, Controller, and Chief Accounting Officer.
Basically, the retention agreements provide for additional retention bonuses for the executives if they remain continuously employed full-time by the company for six month following any change of control of Saucony, Inc. prior to December 31, 2005, or June 30, 2005, for Mr. Deschenes.
The agreement also provides for automatic vesting (after any change in control before 12/31/2005) of 50% of unvested options for a number of the officers. Previous agreements did not provide for such vesting.
