Irving, Texas-based FelCor Lodging Trust (NYSE:FCH) will soon have a new chief financial officer.
On Monday, the real estate investment trust announced that CFO Andrew J. Welch intends to retire from the company at the end of this year. He will resign his post on July 1 but remain with the company a few months longer to facilitate the transition to a new CFO. Said new CFO will be Michael C. Hughes, the current company treasurer and senior vice president for finance, who will be promoted to CFO on July 1.
In a filing with the SEC that accompanied news of the management change, FelCor noted that Hughes will be paid an annual base salary of $275,000 upon taking office as CFO. He will also receive an annual cash bonus of anywhere from 20% to 80% of base salary and, beginning next year, will begin receiving an as-yet unspecified amount of additional equity compensation.
As for Welch, in the same filing detailing the new CFO's compensation, FelCor outlined the severance benefits that will be paid to the outgoing CFO:
- Approximately $1.05 million in cash for salary-based severance and bonus.
- Accelerated vesting of outstanding restricted stock, restricted cash, and restricted stock units.
- $70,295, payable in lieu of company-paid COBRA premiums after leaving the company.