Angiotech Pharmaceuticals reached an agreement in principal with former president & CEO William Hunter to settle a matter regarding Hunter’s termination payments, with Hunter receiving more than double the company’s initial cash offer.
Hunter signed on with Angiotech in April 2004 and was terminated October 17, 2011, resigning from the company’s board of directors shortly thereafter. He was succeeded by then-CFO Thomas Bailey, who still holds the corner office.
At the time of the swap, Angiotech reported that Hunter’s employment agreement entitled him to about $2.6 million in cash payments, representing about 2 years’ salary and benefits. Hunter also received more than 208,000 restricted share units, valued at nearly $3.2 million, as well as just under 220,000 stock options at an exercise price of $20.
"Dr. Hunter has demanded higher amounts," according to a regulatory filing dated Dec. 31, 2011.
Not counting the anticipated severance pay, Hunter’s total package for 2011 was valued at nearly $6.3 million, according to company filings. That included a $652,000 salary, $5.3 million in stock and option awards and about $300,000 in "other compensation."
The company and its former chief came to a mediated settlement in principle, with Hunter receiving a cash settlement of $6.5 million, inclusive of legal costs, in return for surrendering all equity awards he’d received under the company’s stock incentive plan, according to an Angiotech report filed this week.