Ecovyst has revised its severance plan, setting specific payments for executive officers and increasing protection for executives whose jobs are affected by a change in control. The plan took effect October 22 and replaces the version adopted in 2022.
The new terms apply to eligible employees of Ecovyst and participating subsidiaries, including named executive officers. The stated severance amounts are for executive officers.
- How severance is calculated: For executives, “Compensation” means base salary plus target annual bonus.
- Termination outside a change-in-control period: An executive terminated without cause, or who resigns for good reason, is eligible for 52 weeks of Compensation. The CEO is eligible for 104 weeks.
- Termination around a change in control: The protection period runs from six months before a change in control through 24 months afterward. If an executive is terminated without cause or resigns for good reason during that period, severance is the greater of the regular amount above or 18 months of Compensation. For the CEO, the comparison is against 30 months of Compensation.
- Payment and individual agreements: Severance is paid in a lump sum. An executive with an individual employment or severance agreement receives whichever benefit is greater under that agreement or the plan, not both.
- Plan scope: The revised plan covers eligible salaried employees of Ecovyst and participating wholly owned subsidiaries or affiliates. The specific executive payment levels described above apply to executive officers.
In practical terms, the plan sets a baseline of about one year of salary and target bonus for most executive officers and two years for the CEO, with a higher minimum during the change-in-control protection period—18 months for other executives and 30 months for the CEO.