Circuit City’s Ex-CEO to Receive $1.8 Million Severance

Richmond, Va. Phillip J. Schoonover, Circuit City’s departing CEO, chairman and president, will be receiving a severance package totaling $1.8 million, according to a regulatory filing on Thursday.

The package includes his annual base salary and the company’s target bonus for the current fiscal year. Both are worth $900,000, according to documents filed with the Securities and Exchange Commission.

In addition, Schoonover, who stepped down on Monday, will receive health and welfare benefit-plan participation for two years; up to $50,000 in outplacement services, and the acceleration of the vesting of his stock options and restricted stock awards that would have vested prior to Oct. 4, 2009.

His compensation was based on an employment agreement made when he joined the company in 2004. He came from rival Best Buy Co., where he was executive VP of customer segments.

Board member James A. Marcum is currently serving as the chain's interim president and chief executive.