Burlington Northern Santa Fe Corp. Reduces Severance, Benefits for Terminated Officers.
by More for the stockholders!
Burlington Northern Cuts Exec. Severance
Wednesday December 12, 8:35 am ET
Burlington Northern Santa Fe Corp. Reduces Severance, Benefits for Terminated Officers
NEW YORK (AP) -- Railroad operator Burlington Northern Santa Fe Corp. said it reduced the benefits and severance to be collected by terminated company executives, according to a filing Wednesday with the Securities and Exchange Commission.
Effective Dec. 31, company officers will receive severance of two times their total annual salary and incentive package if they are terminated, compared with a previous payout of nearly three times. Officers will also receive half of their total salary and incentive value after a 12-month noncompete clause expires.
Terminated officers will also now receive two years of health coverage when they leave the company, rather than the previous three-year coverage term.
Burlington Northern said the changes were to bring policies in line with the current practices of other large companies.