Middleby Adopts Executive Severance Plan; Amends Incentive Plan
The Middleby Corporation's Compensation Committee adopted an Executive Severance Plan (ESP) on May 20, 2026, providing benefits to named executive officers and other executives upon termination. The plan details severance multiples based on executive tiers and whether termination occurs within 24 months of a change in control. Concurrently, the committee also adopted an amended and restated Value Creation Incentive Plan (VCIP), which provides cash incentive bonuses tied to performance goals for eligible executives and employees.
Key Highlights
- Middleby adopted an Executive Severance Plan (ESP) on May 20, 2026, for its executives.
- CEO (Tier I) is eligible for 3.00x base salary plus target annual bonus in severance.
- Named Executive Officers (Tier II) are eligible for 1.00x base salary plus target annual bonus for non-change in control termination.
- Tier II severance increases to 2.00x base salary plus target annual bonus if terminated within 24 months post-change in control.
- Tier III executives are eligible for 1.00x base salary plus target annual bonus.
- All ESP participants receive a pro-rated annual bonus and COBRA health care continuation coverage.
- The company also adopted an amended and restated Value Creation Incentive Plan (VCIP) for cash bonuses.
Price Impact
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