Weis Markets Inc. will pay out at least $5 million, before deductions, related to the recently announced departure of chief executive David Hepfinger, according to a filing with the Securities and Exchange Commission.
Under the terms of an agreement, Hepfinger will receive, less deductions, $2.25 million at the end of this year and $1.75 million at the end of 2014.
The company also will make monthly payments of $69,628, less certain deductions, starting at the end of October and ending Dec. 31, 2014, the SEC filing stated.
Hepfinger also could get payments in 2014 and 2015 based on the firm’s short-term incentives for senior management.
In addition, Weis will make payments for continued medical coverage, to cover “reasonable” costs for physical examinations this year and 2014, and under the company’s supplemental executive retirement plan, according to the filing.
Northumberland County-based Weis Markets announced this week that Hepfinger, the firm’s president and CEO, had left the business to pursue other interests and that he also resigned from the board of directors.
Jonathan H. Weis, the firm’s vice chairman, has become interim president and CEO.