Feb. 11--Chesterfield County-based Tredegar Corp., which has faced pressure from two of its largest shareholders to explore a possible sale, has amended its severance agreements with several of its top executives.
The amended and restated severance agreements became effective Feb. 3, according to a company filing Monday with the U.S. Securities and Exchange Commission.
The agreements cover Nancy M. Taylor, Tredegar's president and chief executive officer; Mary Jane Hellyar, the company's vice president and president of its Tredegar Film Products Corp. subsidiary; Kevin A. O'Leary, the company's vice president, chief financial officer and treasurer; and A. Brent King, the company's vice president, general counsel and secretary.
Their severance agreements had been due to expire Jan. 30, 2015. The amended and restated agreements will expire Feb. 2, 2016.
In part, the severance agreements cover what would happen if an executive were terminated, or resigned with good cause, preceding or following a change in control of the company.
The amount of severance due would be equal to twice the executive's base salary, plus the executive's target bonus or unpaid bonus from the prior year, plus accrued and unused vacation.
Tredegar makes plastic films for consumer products and aluminum extrusions used in construction, machinery and transportation.
In September, two of the company's largest shareholders, brothers John and William Gottwald, said in a regulatory filing that they believe the company should pursue "strategic alternatives," which could include a sale. The Gottwald brothers, both of whom serve on the company's board of directors, also indicated that they may nominate their own slate of directors for the company's board.
In December, Tredegar announced that CEO Nancy M. Taylor's annual base salary would be reduced, at her request, by 10 percent from $733,268 to $659,950 to support the company's 2014 cost-reduction initiatives.
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