* To get $2 mln payment in December, $10 mln in 2011
* To consult for Massey for 2 years
NEW YORK, Dec 7 (BestGrowthStock) – Massey Energy (MEE.N: ) CEO Don
Blankenship, who is stepping down eight months after a deadly
blast at one of the company’s mines, will receive a $12 million
cash payout as part of his retirement package.
Massey said in a filing with the U.S. Securities and
Exchange Commission on Tuesday that Blankenship will receive a
$2 million cash payment on Dec. 31 and $10 million in cash in
He will also receive additional cash from the company in
lieu of his bonus and other incentive payments that he was due
for 2010, the company said, but did not disclose a sum for
Blankenship will also provide consulting services to Massey
for two years for a $5,000 monthly retainer. He will receive
health care for that period as well.
Massey, based in Richmond, Virginia, has been under
increasing scrutiny by federal mine safety regulators since the
April 5 explosion at its Big Branch Mine in West Virginia. 29
miners died in the blast, which was the deadliest U.S. coal
mining disaster in 40 years.
The company’s financial results have suffered since April,
and Massey has said it was weighing strategic options, sparking
market speculation that one of its peers may look to buy it.
Blankenship announced his resignation on Friday, at the end
of a week in which Massey shut down a Kentucky mine for safety
violations and a judge ruled that Blankenship must face two
lawsuits holding him personally responsible for the blast at
the Upper Big Branch mine in West Virginia.
Blankenship, an outspoken advocate for coal, has attracted
the ire of environmentalists for Massey’s surface, or
mountain-top, mining in Appalachia, which they blame for water
pollution. He has also been criticized by trade unions because
of Massey’s use of nonunion labor.
(Reporting by Michael Erman; Editing by Bernard Orr)
UPDATE 1-Massey’s Blankenship gets $12 mln retirement payout
Category: Business News