Pactiv Corp. executives stand to reap millions if they lose their jobs following the $6 billion acquisition of the Lake Forest-based company by Reynolds Group Holdings Ltd.
Richard Wambold, the 58-year-old chairman and CEO of Pactiv since it was spun off from Tenneco Inc. in 1999, would receive severance and performance-based stock awards worth $14.6 million. He also holds stock or options on 1.41 million shares that would be worth $21.4 million in net profit at the proposed sale price of $33.24 each, according to Pactiv's proxy statement.
Peter Lazaredes, executive vice president of food service and food packaging, would receive severance benefits worth $7 million.
Edward Walters, chief financial officer, would receive a pay package worth $5.7 million.
John Schwab, senior vice president for Hefty and consumer products, and Joseph Doyle, general counsel, would get packages valued at $3.8 million each.
Under Pactiv policies, the executives receive change-in-control payouts if the company is acquired and they lose their jobs or receive diminished roles in the new firm. Reynolds Group, based in Lincolnshire, is a subsidiary of New Zealand-based Rank Group Ltd., owned by Graeme Hart.