AutoNation Former CEO Liebert To Receive Severance Compensation Of $3.75 Mln

(RTTNews) - AutoNation, Inc. (AN) disclosed in a regulatory filing that on August 21, 2019, it has entered into a separation agreement with its former chief executive Carl Liebert. Last month, the company named Cheryl Miller as its chief executive replacing Carl Liebert.

Liebert will be receiving severance compensation equal to $3.75 million, less applicable taxes and withholdings, payable over 18 months. In addition, AutoNation agreed to pay to Liebert a pro-rated annual bonus for 2019, payable at the same time bonuses are paid to the other executive officers.

The company will also reimburse Liebert for certain relocation expenses. Liebert will be treated as "retirement" eligible with respect to the award of 217,834 restricted stock units granted to him on March 11, 2019.

As a result of this separation, AutoNation expects to incur severance and other related expenses in the third quarter of 2019 of $10 million to $11 million after-tax. These expenses will be reflected in selling, general, and administrative expenses and are expected to adversely impact earnings per share from continuing operations for the third quarter by $0.11 to $0.12.

AN closed Friday's trading session at $46.38.