Tyson Relinquishes Executive Duties

John Tyson has decided to become “a non-executive” on the Tyson Foods Inc. board of directors, but will remain chairman of the board as part of the meat processor’s succession plan.

The company said Tyson, the 54-year-old grandson of the company’s founder, will discontinue his remaining responsibilities as an executive officer of the company.

Tyson Foods senior executives, including the company’s general counsel and senior vice president of external relations, will no longer report to John Tyson, the company said.

They will instead report to CEO Richard L. “Dick” Bond, to whom Tyson turned over chief executive duties last year.

As a non-executive board chairman, John Tyson will instead provide advisory services to the company under the terms of a new contract that took effect on Sept. 28.

Tyson filed details of the new contract, which includes new compensation for the chairman, in a filing with the U.S. Securities and Exchange Commission.

According to the Form 8-K, Tyson will “provide up to 20 hours per month of advisory services to the company and perform certain public relations duties, each upon the company’s reasonable request.” A substantial decrease in salary will accompany Tyson’s change in position.

The SEC filings state that Tyson will now earn a salary of $300,000 per year. His previous salary was $1.17 million annually.

He will also be required to reduce his Class A common stock holdings from 1,561,393 shares to 780,000 shares, to be vested on Feb. 12.

Tyson will maintain his company health insurance for himself and his family and his $7.5 million life insurance policy but will relinquish his rights to receive company bonuses.

Many perks remain in place.

John Tyson will still be reimbursed by the company for one country club membership, still be provided a company car and have use of the company jet for a set number of hours per year, subject to company approval.

“The decision to relinquish my duties as an executive officer is part of the evolution of the company’s succession planning,” John Tyson said in a news release.

John Tyson joined the company’s board of directors in 1984.

He became chairman in 1998.

He was chairman, president and CEO beginning in 2000 and was chairman and CEO from 2001-2006.

Tyson Foods reported third-quarter net income of $111 million or 31 cents a share, compared with a net loss of $52 million or 15 cents a share in the prior third quarter.

Sales for the third quarter were up from $6.4 billion in the same period last year to $7 billion this year, about a 9.3 percent increase.