Tom Hayes, former president and chief executive officer (CEO) of Tyson Foods, will be getting a severance package valued at approximately $6.35 million, according to a proxy statement filed by the company with the U.S. Securities and Exchange Commission (SEC).
In the proxy statement, Tyson Foods stated that while Hayes stepped down as CEO in September 30, he remained an employee of the company until December 1. At that time, Hayes and the company entered into a separation and release agreement in which Hayes would receive his annual salary of $1,207,500 and an annual target bonus of $1,811,250, both for two years following his exit from the company. Also in the agreement was a pro-rated bonus of $313,486.
Hayes, who came to Tyson Foods with the Hillshire Brands acquisition in 2014, was named president in January 2016. About a year later, he took on the responsibilities of CEO upon the retirement of Donnie Smith.
However, Tyson Foods on September 17 announced that Noel White, formerly Tyson’s group president of the Beef, Pork and International segments and a member of Tyson Foods’ enterprise leadership team, would succeed Hayes as Tyson Foods president and CEO, effective September 30.
In a press release, Tyson Foods at the time stated that Hayes was resigning for “personal reasons.”
“It is a very difficult decision to leave Tyson Foods, but after careful consideration and discussions with my family and the board, I know it is the right thing to do,” Hayes stated in September.
Hayes has signed a non-competition agreement that must be honored through December 1, 2020.
During Hayes’ tenure as president and CEO, the company divested of non-protein subsidiaries, as well as invested in non-meat protein companies, including both plant-based proteins and cell-cultured foods. It also increased its poultry production capacity during Hayes’ time as CEO with the acquisition of Tecumseh Poultry, and reached an agreement to acquire Keystone Foods from Marfrig Global Foods, a transaction which was finalized under White’s leadership on November 30.
