Peter A. Lankau will receive a payment of $1.94 million in connection with his resignation as CEO of Endo Pharmaceuticals Holdings Inc.
The Chadds Ford drug maker announced Monday evening that Lankau would resign as of March 1. A document filed with the Securities and Exchange Commission Wednesday contains the terms of the "separation agreement" between Endo and its CEO.
The lump sum payment amounts to two times Lankau's base salary of $606,000 and the target incentive compensation for 2008, which is 60 percent of his salary.
The company agreed to accelerate the vesting of 131,379 stock options that it had granted Lankau during 2004 and 2005.
(Those options, which will vest March 1, carry strike prices of either $16.47 or $20.22. At Endo's stock price of $25.79 shortly after noon, those options would be worth more than $755,000 if the options had vested today.)
An additional 256,250 stock options awarded to Lankau that have not vested will lapse. Lankau also has options totaling 168,750 shares that have vested. As of today, those options are underwater, meaning their strike prices are higher than the current market price.
