Skullcandy announced today that two of its key executives will not be making the move to the company’s now centralized headquarters in Park City, Utah. Vice President, International Sales Aaron Behle and Vice President, Global Marketing Nate Morley, will both depart from the company, according to a Skullcandy SEC filing. This announcement comes on the heels of Skullcandy’s decision last week to consolidate its operations by closing down the San Clemente offices. Senior Vice President and Chief Financial Officer Kyle Wescoat also gave his resignation Monday, June 17.
Here’s more from the SEC filing from Skullcandy:
The Company has deemed their resignation in connection with the consolidation of the offices to be an effective termination without cause, entitling both individuals to the severance payments and other benefits set forth in their offer letters. A description of the severance benefits for each of Mr. Behle and Mr. Morley can be found in the Company's Annual Proxy Statement, filed with the Securities and Exchange Commission on April 29, 2013.
To facilitate an orderly transition, Mr. Behle has agreed to continue in his role as Vice President, International Sales until August 9, 2013 and Mr. Morley has agreed to continue in his role as Vice President, Global Marketing until September 3, 2013.
As previously disclosed on June 17, 2013, Kyle Wescoat notified the Company of his intention to resign from his position as Senior Vice President and Chief Financial Officer in order to pursue other opportunities closer to his home in Southern California. To facilitate an orderly transition, Mr. Wescoat has agreed to continue in his role as Senior Vice President and Chief Financial Officer until October 4, 2013 (the "Separation Date").
In connection with Mr. Wescoat's resignation from the Company, and for continuing as the Chief Financial Officer of the Company during the search for his successor, Mr. Wescoat and the Company will enter into a Separation Agreement on Mr. Wescoat's last day of employment with the Company (the "Separation Date") that provides Mr. Wescoat with the following benefits in exchange for executing and not revoking a release of claims in favor of the Company and its affiliates:
(i) a lump sum cash payment equal to twelve months of Mr. Wescoat's current base salary minus the pro-rated salary paid to Mr. Wescoat from June 18, 2013, through the Separation Date, which will be paid within fourteen days following the Separation Date; and
(ii) premiums to continue COBRA coverage from the Separation Date through June 2014.
The description of the terms of the Separation Agreement is qualified in its entirety by the terms of the Separation Agreement attached hereto as Exhibit 10.1.