Our new fearless leader.
Best thing going for him is he is not Sandy.
Drapkin as chairman also helps.
However, we are paying JJ out the nose. Win lose or draw for the rest of us, he is a big winner.
As President and Chief Executive Officer of the Company, Mr. Buettgen will receive an annual base salary of $800,000 and he will be eligible for an annual bonus under the Company’s Executive Incentive Compensation Plan with a target amount of 100% of base salary and a maximum payout of 200% of base salary. For the fiscal year 2013 ending June 4, 2013, the Company will guarantee an annual bonus to Mr. Buettgen at target payout or actual performance, whichever is greater.
In connection with Mr. Buettgen’s appointment as President and Chief Executive Officer, he will receive an equity award valued at $1.6 million comprised of one-third service-based restricted stock, one-third performance-based restricted stock and one-third performance-based cash incentive awards. The service-based restricted stock will cliff vest after 30 months and will be subject to a six-month holding period following vesting. The performance-based restricted stock and cash incentive awards will have a one-year performance period, which is the fiscal year 2013, with conditions relating to the achievement of goals related to same-restaurant sales and adjusted earnings before interest, taxes, depreciation and amortization. Subject to these conditions, the performance-based restricted stock will cliff vest after 30 months and the performance-based cash incentive will vest 50% in 18 months and 50% in 30 months, all from the date of grant. The performance-based restricted stock will also be subject to a six-month holding period following vesting. The Company will guarantee a vesting of the performance-based restricted stock and performance-based cash incentives to Mr. Buettgen at target level or actual performance, whichever is greater.
In addition, Mr. Buettgen will receive (i) a one-time make-whole equity award (the “Make-Whole Award”) valued at $2.5 million, which award is comprised of $1.4 million of service-based restricted stock and $1.1 million of service-based stock options and (ii) a one-time, high-performance and inducement award (the “Inducement and High-Performance Award”) comprised of 250,000 shares of service-based restricted stock, 250,000 service-based stock options and 250,000 performance-based stock options. The service-based restricted stock will cliff vest after 30 months and will be subject to a six-month holding period following vesting. The service-based stock options will vest in equal annual installments over three years and will be exercisable for seven years from the date of grant. The performance-based stock options will cliff vest if and when the Company’s stock price appreciates to $14 per share for a period of 20 consecutive days within Mr. Buettgen’s first three years of employment. Both the Make-Whole Award and the Inducement and High-Performance Award will subject Mr. Buettgen to a two-year non-competition covenant following vesting.
Mr. Buettgen will be eligible for severance in an amount equal to three times his base salary, subject to his compliance with certain restrictive covenants, including three-year confidentiality and non-solicitation of employees covenants. The Company will pay or reimburse Mr. Buettgen for certain expenses related to his relocation to Tennessee.
You will soon want Sandy back. JJ has two failed presidential stints to his credit. Closed a fast casual brand while at Brinker and failed miserably at a BBQ brand at Darden. They have had him tucked away in a no impact job for many years. Not a sharp guy, huge ego, bad leadership skills. RT's has way too many problems to take a chance on a guy who has already had two chances at this job. Life in operations will soon be miserable. run for the hills. Private equity here we come.