Termination Lucrative to Gallery CFO4 Sep, 2008 By: Erik Gruenwedel
Thomas Johnson, who until relinquishing duties last month to Lucinda Baier had been CFO of Movie Gallery since 2004, was paid a lump sum of $751,062.62 by the No. 2 DVD rental service, according to a regulatory filing.
The sum represented 18 months severance pay of $487,500.00 and $263,562.62 to cover all applicable taxes related to the severance pay. Johnson also had his medical insurance paid for the next 12 months.
Dothan, Ala.-based Gallery, which emerged from Chapter 11 bankruptcy protection in May, reported a consolidated net loss of nearly $50 million on revenue of more than $151 million for the period from March 10 to April 6 — the last time it disclosed financial results.