Processing Magazine

Tyson chair will step down as executive

October 1, 2007

According to the Associated Press, Tyson Foods Inc. said recently that Chairman John Tyson will step down as an executive, although he remains chairman, effective immediately. Tyson will continue to lead the board of directors, but senior executives including the company''s general counsel and senior vice president of external relations will now report to Chief Executive Richard Bond. Tyson, 54, will be an adviser under terms of a new contract, which replaces his contract that was set to expire in February 2008. It also replaces Tyson''s commitment to enter into a 10-year senior executive employment agreement. According to a filing with the Securities and Exchange Commission, the new role cancels Tyson''s annual base salary of $1.2 million and eligibility for any annual bonus. Instead, Tyson will receive $300,000 per year and other benefits, according to an agreement that expires in 2017, unless terminated earlier. The new contract also halves Tyson''s existing grant of Class A restricted shares to 780,000 from about 1.6 million.