Outgoing Valspar Corp. CEO William Mansfield will continue to receive his $950,000 salary through the end of the paint and coatings company's fiscal year.
In a Transition Agreement and Release filed Monday (April 18) with the Securities and Exchange Commission, the Minneapolis-based company reported that Mansfield would be eligible to receive up to 200 percent of his pay in the form of a cash bonus based on Valspar’s financial performance through Oct. 31, the end of fiscal 2011.
|William Mansfield will leave his position as CEO on June 1, but receive his salary through Oct. 31.|
Valspar announced in February that Gary Hendrickson, 54, Valspar's president and chief operating officer, would succeed Mansfield, 62, as CEO on June 1. Mansfield remains chairman of the board.
Cash Award Target: $1.8M
Under the transition agreement, Mansfield is eligible to receive a “cash award” in lieu of restricted stock for the rest of the fiscal year. The target level for this award is $1.8 million, with the actual payout ranging from 0 to 125 percent of the target level, “depending on the achievement of the same performance goals applicable to his annual cash bonus.”
Mansfield also will become fully vested in outstanding stock options and restricted stock awards as of his retirement date. Although he will retire as a Valspar employee on Oct. 31, 2011, he will remain chairman of the board until the board elects a new chair “or such other date as is mutually agreed by Mr. Mansfield and the Board,” the agreement states.
Mansfield joined Valspar in 1977 as purchasing manager. He has been chairman of Valspar’s board since 2007, CEO of the company since 2005, and president from 2005 through 2008. He holds a B.S. in Engineering from Drexel University and an M.B.A. from Lehigh University.
Valspar reported a strong first quarter (ended Jan. 28) overall, with a 25.3 percent increase in sales over the first quarter of FY 2010. But Mansfield expressed “concern, uncertainty and hopefulness” over the 0.8 percent quarterly decline in the coatings segment.
The company’s FY 2010 sales totaled $3.2 billion, a 12.1 percent increase over the previous fiscal year. Valspar’s stock has recently been trading at all-time highs.
Mansfield’s total compensation for the year ended Oct. 30, 2010, was $4,544,181, according to the Minneapolis Star Tribune.
Valspar, founded in 1806, manufactures paints and coatings for the consumer market, packaging coatings, wood coatings, industrial coatings, automotive coatings and refinishing systems, and coating intermediates.