Tyson board chairman’s new contract includes $40 million cash incentive

John H. Tyson, grandson of Tyson Foods founder John W. Tyson, signed an amended employment contract that will extend to Sept. 30, 2029. Tyson is board chairman, a position he has held since 1998. The new contract replaces an agreement signed in 2017.

Tyson’s continued employment with the company provides him with an annual base salary of $3.5 million, according to a filing posted Thursday (June 18) with the U.S. Securities and Exchange Commission. He is also eligible for the company’s annual incentive programs, with an annual target equal to 300% of his annual base salary, and the long-term incentive plan, with an annual target grant date value of $6 million, 50% of which is performance stock and 50% restricted stock.

Tyson also received a one-time incentive award cash payment of $40 million, a portion of which is subject to pro rata repayment if he voluntarily resigns without good reason or is terminated for cause before Sept. 30, 2029.

Another perquisite for the chairman is the use of the company-owned jet aircraft for personal and business travel, which will be taxable. He will also receive 300 hours annually of aircraft use for flights in which he is not a passenger.

Tyson will receive personal security services provided by the company, and he may request additional security services up to $150,000 annually. Tyson Foods will also reimburse the senior chairman for the annual premium on his existing life insurance policy and continued payment of a supplemental executive retirement plan benefit of about $175,000 annually.

If he leaves the company before the contract term ends, he would be entitled to a lump sum cash payment equal to the greater of two years of salary, two times his target annual incentive plan and two times his annual target long-term incentive awards. Such termination would also trigger vesting of any outstanding stock and option awards that would be eligible for cash redemption by the company. Tyson will also receive medical coverage for life provided by the company.