Jonathan Judge has resigned from his post as president of Paychex Inc., the company says.
Paychex, Rochester, N.Y. (Nasdaq:PAYX), sells benefits administration and compliance services along with payroll services.
Judge has signed a separation agreement that calls for him to receive a severance payment of $1.9 million along with immediate acceleration on July 31 of unvested equity awards made before July 1, 2007; and health insurance premiums for 12 months, the company says in a report filed with the U.S. Securities and Exchange Commission.
An additional 11,111 shares of restricted stock and an additional 30,000 non-qualified stock options from the July 17, 2007, awards will also vest July 31, the company says.
“All vested and exercisable equity awards will continue to be governed by applicable plan documents,” the company says. “In consideration of the company entering into the agreement, Mr. Judge has agreed to certain non-compete, non-disparagement, confidentiality, and non-solicitation provisions.”
Judge has entered into a general release of all claims with the company, Paychex says.
The Paychex board is looking for a new chief executive officer and has formed an executive committee to run the company while the search is under way, the company says.
Judge will continue to be a Paychex director but says he does not intend to stand for re-election, Paychex says.
“There were no disagreements between Mr. Judge and the company relating to the Company’s operations, policies, or practices involved in Mr. Judge’s decision not to stand for re-election as a director,” the company says.